BEFORE THE

U.S. DEPARTMENT OF TRANSPORTATION

WASHINGTON, DC

)

Application of )

) Docket No. OST-2013-0204

NORWEGIAN AIR INTERNATIONAL )

LIMITED )

)

for an exemption under 49 U.S.C. § 40109 )

and a foreign air carrier permit pursuant to )

49 U.S.C. § 41301 (US-EU Open Skies) )

)

ANSWER OF EUROPEAN COCKPIT ASSOCIATION

TO APPLICATION OF NORWEGIAN AIR INTERNATIONAL LIMITED

FOR AN EXEMPTION AND FOREIGN AIR CARRIER PERMIT

The European Cockpit Association is the official Social Partner of the European Union 

and it representing 38,000 European professional flight crew in 38 European Countries. 

The European Cockpit Association (ECA) opposes Norwegian Air International 

Limited’s (NAI) application for an exemption and a foreign air carrier permit. NAI

which refers to itself as an Irish carrier is an affiliate of two Norwegian airlines:

Norwegian Air Shuttle (NAS) and Norwegian Air Shuttle Long Haul (NLH). 

During the last two years NAS has repeatedly tested the boundaries of the Norwegian 

and EU legislation on individual and collective labor rights. In its latest move, NAS has 

set up a corporation in Ireland with the aim of granting it the status of an airline that 

would operate transatlantic flights with contracted European pilots recruited in 
Singapore and based in Thailand. This move appears to many observers as an attempt 

to engage in social dumping at the expense of EU member states and any states NAI 

may operate to or from. We recommend the US Department of Transportation not grant 

an exemption nor a foreign air carrier permit to NAI. NAI’s organizational set-up 

would risk undermining the fair competition conditions in the EU-US aviation market 

and undermine the working conditions of its workers. 

BACKGROUND

Norwegian Air Shuttle (NAS) has been using loopholes in EU and national 

legislation for several years that can easily result in the avoidance of obligations in EU 

social and labor legislation. The airline has also reported to having recruited a large 

number of contractors to fly its European and intercontinental routes. Not only would 

this method of engaging workers effectively fragment their ability to associate and 

bargain collectively, but ECA also believes it would fragment the safety culture of an 

airline by diluting lines of accountability and responsibility. Such an outcome is clearly 

not in the public interest.

In January 2012, NAS set up a fully owned subsidiary – NLH - to operate long haul 

flights. The first flights of the company between Oslo and Stockholm to Bangkok and 

New-York were launched at the end of May 20131. The company is set up in a way that 

 

1 See HSBtransport-Norwegian_Flash_23May_2013
de facto prevents the NLH pilots from being covered by the collective labor agreement 

covering NAS pilots.

NLH is leasing Irish registered aircraft and has requested an exemption from the 

Norwegian CAA to use IE registered aircrafts under a Norwegian AOC. This is an 

exceptional procedure in Norway to fill the gap between the time when a company 

purchases foreign registered aircrafts and the time when the company receives the new 

registration numbers in accordance with its AOC. So far the application for the AOC

has twice been rejected by the Irish authorities due to ‘incomplete paperwork’.

Back in January 2013 NLH had requested that the Norwegian government to amend its 

immigration law to enable the recruitment of non-EU crew to fly onboard Norwegian 

registered aircraft2. Following the Norwegian Government’s decision to stick to current 

legal requirements, NAS CEO, Mr. Bjørn Kjos announced that NAS would move its

long haul operations to a different Member State. Further, it was announced that NAS 

would register a new subsidiary in Ireland and carry out its operations from there. 

The granting of an AOC in Ireland and the subsequent permission to operate in the US 

as a foreign carrier would therefore have the effect of undermining Norway’s legislation

governing social security and pension systems as well as national labor and 

immigrations laws and have a negative impact on labor (including American pilots). 

 

2 See attachment : ECA_Letter_Ministry_of_Labour_Norway_13_0109_F
ARGUMENT

I- Norwegian Air Shuttle International has no Irish Air Operator Certificate

On April 3

rd 2013, NAS established Norwegian Air Shuttle International in Ireland. 

However, the company has yet to receive an operating certificate from the Irish 

Aviation Authorities.

In order to get an operating license in an EU Member State, airlines need to satisfy the 

conditions as laid down by regulation 1008/2008 of the European Parliament and of the 

Council. The competent licensing authority is located in the country where the airline 

satisfies the requirements of regulation 1008/2008, which include that the airline should 

have its principal place of business in this country. The principal place of business 

means the head office or registered office of a Community air carrier in the Member 

State within which the principal financial functions and operational control, including 

continued airworthiness management, of the Community air carrier are exercised.

When looking at the structure of NAI, its 3 Directors are either residents or Norway or

Sweden, who are affiliated with NAS, while its secretariat is managed by an in-house 

secretary company3 where NAI is officially registered (Norwegian Air International 

Limited – 70 Sir John Rogerson’s Quay Dublin 2)4. Furthermore the above mentioned 

NAS-affiliated Directors have an active role in the management of NAS Norway. 

 

3 See document ‘Key_company_details’

4 See document ‘Application_to_incorporate_a_company’
Against this background, it would seem more appropriate for NAI to request an AOC 

in Norway where NAS has its headquarters and is principal place of business. 

Consequently, and to comply with regulation 1008/2008 NAI should register its aircraft

in Norway. 

In the absence of a clear fulfillment of EU obligations regarding the granting of an AOC 

and considering that the NAI doesn’t yet have an Irish AOC, the European Cockpit 

Association opposes Norwegian Air International Limited’s (NAI) application for an 

exemption and a foreign air carrier permit. 

II- Norwegian Air Shuttle International recruitment of staff in Asia 

Background

NAI and NLH are recruiting cabin attendants in Thailand and pilots in Singapore for its 

Singapore base. NAS LH Singapore has started to recruit B787 pilots (captains, co-pilots 

and relief captains) to fly out of Bangkok. Recruitment ads require the pilots to have a 

JAR/EASA license and to have a European citizenship5. The individual pilots’ contracts 

are to be governed by Singapore law6. Foreign employees, working for a Norwegian 

company in Norway, need a work permit granted by the State. This is also applicable to

foreigners working on a Norwegian registered aircraft. NAS, however, claims the 787 

 

5 See document ‘recruitment_add_NLH’

6 See document ‘NAI_Singapore_Employment_Contract
pilots are not working for a Norwegian company in Norway because the aircraft are 

registered in Ireland and the crews are based in Thailand. 

Employment agreement

The employment agreement is signed between a pilot referred to as the ‘employee’ and 

a contracting agency ‘Global Crew Asia pte. Limited’ referred to as the ‘employer’ to 

provide services to the employer’s client. The agreement defines the client as follows: 

the ‘Client’ means the Employer’s client airline Norwegian Longhaul Singapore Pte. 

Limited based in Singapore. We believe that the plan is that pilots covered by contracts 

such as these would work onboard NAI’s aircraft. It is not clear how, and under which 

employment regime, pilots recruited for a Singaporean airline would be permitted to fly

for NAI, an Irish registered company. 

Official base vs. effective base

NAI pilots may be entitled to ‘extended lay over’ which would include weekly rest days 

(§5.3 of the employment agreement). This is not a common practice and it seems that it 

can be used to circumvent/avoid the effective basing of the pilots (European citizens as 

per recruitment) in Bangkok. In practice it means that pilots may actually live in 

Europe, carry out their duties from Stockholm or Oslo, be subject to Thai social 

legislation (official base) and be entitled to health care in Singapore. 
This raises the concern that in reality Bangkok might be a fictive base that would allow

NAI to circumvent the labor and social laws of the Scandinavian countries.

Social Dumping: unfair wages and working conditions

By recruiting contracted European pilots in Singapore and contracted Thai cabin crew 

at a low wage (USD 500)7 NAI is setting up a complex system which could result in the 

circumvention of the social and labor laws in Norway and in Europe. This would affect

the competition between EU and US carriers and risks exporting EU and global social 

dumping practices to the US, thereby affecting US citizens and workers. ECA is 

opposing such unfair practices in Europe and does not wish them to spread outside of 

Europe. 

Difficult access to health care

In the case where pilots are effectively based in Thailand they are still faced with the 

problem that they and their families can only receive health care treatments in 

Singapore (including for child birth or surgery that requires regular monitoring and 

follow-up). These conditions are not in accordance with the respect of workers’ 

fundamental rights and can lead to social dumping. In addition, the recruitment agency 

chosen by Norwegian ‘Rishworth Aviation’ advertises: “The launch routes will be from 

 

7 http://www.newsinenglish.no/2013/10/30/norwegian-air-faces-boycott/
the Scandinavian capitals to New York and Bangkok”

8

. However, while reading the job 

advert and trying to get further information on the position, it states that the base is in 

Bangkok.

III- EU-US Air transport Agreement

When Norway formally acceded the EU-US air transport agreement it agreed to comply 

with the all the provisions of the agreement, including with article 17 on labor matters. 

In 2008 and 2009 the European Commission organized two labor forums to analyze the 

potential risks for the labor force in further opening up the aviation market between the 

EU and US in terms of ownership and control and market access. In its conclusions the 

forum’s report fully noted that in Europe, collective labor rights may be undermined by 

further liberalization of the EU-US Aviation market. During the labor forum, the US 

AirLine Pilots’ Association – and ECA – warned against the possibility for social 

dumping in Europe to be exported to the US and to affect the working conditions and 

labor rights of EU and American worker. NAI is clearly an example of a company that 

risks undermining the terms of the EU-US air transport agreement.

III- Conclusion

Based upon the fact that Norwegian Air Shuttle International:

- registered in Ireland has not been granted an AOC by the Irish aviation

 

8 http://www.rishworthaviation.com/Featured/27/boeing-b787-pilot-jobs.aspx
authorities yet and thereby is not in a position to provide a copy of the 

document to the US Department of Transportation;

- risk undermining fair competition in the EU-US aviation market, contrary to the 

aim of the EU-US air transport agreement by

o recruiting crews in Asia to operate flights between the EU and the US that 

should properly be employed in the EU and US in order to best respect 

fundamental workers’ rights and to better foster a positive safety culture;

o risk spreading social dumping practices in the operations covered by the 

EU-US agreement;

The European Cockpit Association recommends the US Department of Transportation

not to approve NAI’s request for an exemption and a foreign carrier permit.

Philip von Schöppenthau

Secretary General

European Cockpit Association (ECA)

Rue du Commerce 20-22

B-1000 Brussels

Belgium

Phone: 32 2 705 32 93

Fax: 32 2 705 08 77

Email: pvs@eurocockpit.be

 

Dated: December 17, 2013
CERTIFICATE OF SERVICE

I certify that I have, on this 17th day of December, 2013, served the foregoing 

document on the persons identified below by causing a copy to be sent by electronic 

mail: 

romanow@pillsburylaw.com

peter.nelson@pillsburylaw.com

steve.morrissey@united.com

dan.weiss@united.com

sascha.vanderbellen@delta.com

howard.kass@usairways.com

robert.wirick@aa.com

francis.heil@aa.com

rpommer@atlasair.com

mlbenge@zsrlaw.com

jesse.elliot@faa.gov

douglas.schwab@faa.gov

nicholas.tsokris@faa.gov

john.allen@faa.gov

anita.mosner@hklaw.com

jennifer.nowak@hklaw.com

nssparks@fedex.com

gbleopard@fedex.com

urskr@state.gov

dberg@airlines.org

jcasey@airlines.org

russell.bailey@alpa.org

david.semanchik@alpa.org

Philip von Schöppenthau
CERTIFICATE OF SERVICE

I certify that I have, on this 17th day of December, 2013, served the foregoing 

document on the persons identified below by causing a copy to be sent by electronic 

mail: 

romanow@pillsburylaw.com

peter.nelson@pillsburylaw.com

steve.morrissey@united.com

dan.weiss@united.com

sascha.vanderbellen@delta.com

howard.kass@usairways.com

robert.wirick@aa.com

francis.heil@aa.com

rpommer@atlasair.com

mlbenge@zsrlaw.com

jesse.elliot@faa.gov

douglas.schwab@faa.gov

nicholas.tsokris@faa.gov

john.allen@faa.gov

anita.mosner@hklaw.com

jennifer.nowak@hklaw.com

nssparks@fedex.com

gbleopard@fedex.com

urskr@state.gov

dberg@airlines.org

jcasey@airlines.org

russell.bailey@alpa.org

david.semanchik@alpa.org

Philip von Schöppenthau
 

abc

Global Research

Long haul risks dissipate 

We expected Norwegian to be facing considerable execution risk in the launch of its long 

haul services: delays to the 787 deliveries have necessitated the use of wet-leased A340s 

and the Norwegian government has been opposing the use of the Thai cabin crew that 

Norwegian has recruited to staff its 787s. The 787’s grounding has now been lifted and 

deliveries are recommencing. Norwegian expects its first 787 at the end of June, planning 

to fly short haul in July and launch long haul in August. The second 787 should be 

delivered in July. We thus see a reducing impact from wet lease costs. The company has 

also announced plans to register its 787s in Ireland, which will allow the aircraft to be 

crewed by the Thai staff. Looking anecdotally at round trip fares for August travel, we 

see Norwegian selling Oslo-New York for NOK5,000-7,000 round trip, compared to SAS 

selling at NOK7,000-12,000, whilst Norwegian is selling Stockholm-New York for 

SEK6,000-8,500, somewhat closer to SAS’s 6,700-10,000, which is a large but not 

alarming discount to SAS. 

Target price increased to NOK350 

Taking account of these developments, we slightly reduce our forecasts for labour and 

other costs, prompting a 3% increase in FY13 and FY14 EBIT estimates. Feeding this 

through to our three stage DCF, together with a flow-through increase of forecast mid 

term EBIT margin to 9.4% (9.2%) we increase our target price from NOK320 to 

NOK350, retaining an Overweight (V) rating. 

Norwegian Air Shuttle 

(NAS NO) 

OW(V): Long haul risks dissipate 

 New York services commence at the end of May, the first 787 

is due for delivery at the end of June; the aircraft will be 

registered in Ireland and staffed with Thai crew as planned 

 Reflecting the dissipating long haul execution risks, we edge 

our EBIT estimates for FY13 and FY14 higher by 3% 

 We raise our DCF-based target price to NOK350 (NOK320), 

reflecting the raised estimates; remain OW(V) 

Transport 

Airlines 

Equity – Norway 

Flashnote 

23 May 2013 

Andrew Lobbenberg* 

Analyst 

HSBC Bank plc 

+44 207 9916816 

andrew.lobbenberg@hsbcib.com 

Joe Thomas* 

Analyst 

HSBC Bank plc 

+44 207 9923618 

joe.thomas@hsbcib.com 

Julia Winarso* 

Analyst 

HSBC Bank plc 

+44 207 9912168 

julia.winarso@hsbcib.com 

Achal Kumar* 

Analyst 

HSBC Bank plc 

+91 80 30013722 

achalkumar@hsbc.co.in 

View HSBC Global Research at: 

http://www.research.hsbc.com 

*Employed by a non-US affiliate of 

HSBC Securities (USA) Inc, and is not 

registered/qualified pursuant to FINRA 

regulations 

Issuer of report: HSBC Bank plc 

Disclaimer & Disclosures 

This report must be read with 

the disclosures and the 

analyst certifications in the 

Disclosure appendix, and 

with the Disclaimer, which 

forms part of it

Overweight (V) 

Target price (NOK) 350.0 

Share price (NOK) 285.0 

Potential return (%) 22.8 

Note: Potential return equals the percentage 

difference between the current share price and 

the target price 

Performance 1M 3M 12M 

Absolute (%) 12.7 31.4 219.3 

Relative^ (%) 6.2 24.9 155.6 

Index^ OBX INDEX 

RIC NWC.OL 

Bloomberg NAS NO 

Market cap (USDm) 1,726 

Market cap (NOKm) 10,021 

Enterprise value (NOKm) 11,115 

Free float (%) 62 

Note: (V) = volatile (please see disclosure appendix) 
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23 May 2013 

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Profit forecasts lifted 

Norwegian will now be taking delivery of its first Boeing 787 in late June followed by two more this year. The 

threat from exceptional wet lease costs is easing. The company’s decision to register its first 787s in Ireland and 

crew the long haul aircraft with its planned Thai crew looks to reduce the risk on labour costs. We consequently 

make small adjustments to the other cost and labour cost lines of our model, raising EBIT estimates by 3% in 

FY13 and FY14. 

Forecasts changes summary 

Year to 31 Dec, NOKm 2012 2013e 2014e 2015e 2013e 2014e 2015e 2013e 2014e 2015e 

 Actual Was Was Was Is Is Is Change Change Change 

Passenger transport 11,201 13,776 17,284 20,045 13,776 17,284 20,045 0.0% 0.0% 0.0% 

Ancillary revenue 1,405 1,696 2,037 2,283 1,696 2,037 2,283 0.0% 0.0% 0.0% 

Total Revenue 12,859 15,779 19,692 22,748 15,779 19,692 22,748 0.0% 0.0% 0.0% 

Fuel 3,748 3,866 5,282 6,133 3,866 5,282 6,133 0.0% 0.0% 0.0% 

Airport charges 1,730 2,068 2,520 2,882 2,068 2,520 2,882 0.0% 0.0% 0.0% 

Handling charges 1,077 1,275 1,546 1,759 1,275 1,546 1,759 0.0% 0.0% 0.0% 

Maintenance 793 962 1,227 1,442 962 1,227 1,442 0.0% 0.0% 0.0% 

Sales and distribution exp. 275 372 449 501 372 449 501 0.0% 0.0% 0.0% 

Payroll 2,068 2,504 3,081 3,650 2,492 3,051 3,615 -0.5% -1.0% -1.0% 

Other operating expense 1,017 1,325 1,615 1,843 1,294 1,595 1,843 -2.4% -1.2% 0.0% 

Aircraft Lease 1,033 1,264 1,460 1,466 1,264 1,460 1,466 0.0% 0.0% 0.0% 

Depreciation 385 549 749 969 549 749 969 0.0% 0.0% 0.0% 

Underlying EBIT 732 1,595 1,763 2,103 1,638 1,812 2,138 2.7% 2.8% 1.7% 

Reported EBIT 403 1,851 1,763 2,103 1,894 1,812 2,138 2.3% 2.8% 1.7% 

Net financing Costs 186.9 -335 -171 -249 -335 -171 -247 0.0% 0.5% 1.0% 

PBT reported 623 1,549 1,626 1,889 1,593 1,677 1,927 2.8% 3.1% 2.0% 

PAT reported 456.7 1,135 1,192 1,385 1,167 1,229 1,412 2.8% 3.1% 2.0% 

Reported EPS, Diluted 12.99 32.29 33.90 39.38 33.20 34.94 40.16 2.8% 3.1% 2.0% 

Source: Company data, HSBC estimates 

Valuation and risks 

We raise our three stage DCF-based target price to NOK350 from NOK320, reflecting the slight increase to our 

forecasts and mid-term EBIT margin, which edges higher to 9.4% (9.2%). We use a WACC of 7.5% 

(unchanged). Our DCF assume equity risk premium of 7%, sector beta of 1.1, risk-free rate of 3.0%. For volatile 

Norwegian stock, the Neutral band is 10ppts above and below the hurdle rate of 11%. Our TP implies a 22.8% 

potential return; therefore, we maintain our OW(V) rating. Potential return equals the percentage difference 

between the current share price and the target price, including the forecast dividend yield when indicated. 

Downside risks to our Overweight rating would include a rebound in the fuel price, signs of increased 

competitive entry by easyJet and Ryanair into the Nordics, a quick fall off in the yields or further problems with 

the 787 introduction into service. 

Norwegian three-stage DCF 

Economic Profit Valuation (NOKm) 

Adjusted Opening Invested Capital 17,664 Less: balance sheet debt -3,796 

NPV of Economic Profit During Explicit Period 331 Less pension deficit 0 

NPV of Econ Profit Value Driver Phase 5,358 Less: capitalised op leases -7,804 

NPV of Econ Profit of Fade Period 438 Equity Value 12,306 

Enterprise Value 23,791 No. Shares (millions) 35 

Plus: equity (associates) holding value 115 Per Share Equity Value (NOK) 350.0 

Source: HSBC 
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Disclosure appendix 

Analyst Certification 

The following analyst(s), economist(s), and/or strategist(s) who is(are) primarily responsible for this report, certifies(y) that the 

opinion(s) on the subject security(ies) or issuer(s) and/or any other views or forecasts expressed herein accurately reflect their 

personal view(s) and that no part of their compensation was, is or will be directly or indirectly related to the specific 

recommendation(s) or views contained in this research report: Andrew Lobbenberg, Achal Kumar, Joseph Thomas and Julia 

Winarso 

Important disclosures 

Equities: Stock ratings and basis for financial analysis 

HSBC believes that investors utilise various disciplines and investment horizons when making investment decisions, which 

depend largely on individual circumstances such as the investor's existing holdings, risk tolerance and other considerations. 

Given these differences, HSBC has two principal aims in its equity research: 1) to identify long-term investment opportunities 

based on particular themes or ideas that may affect the future earnings or cash flows of companies on a 12 month time horizon; 

and 2) from time to time to identify short-term investment opportunities that are derived from fundamental, quantitative, 

technical or event-driven techniques on a 0-3 month time horizon and which may differ from our long-term investment rating. 

HSBC has assigned ratings for its long-term investment opportunities as described below. 

This report addresses only the long-term investment opportunities of the companies referred to in the report. As and when 

HSBC publishes a short-term trading idea the stocks to which these relate are identified on the website at 

www.hsbcnet.com/research. Details of these short-term investment opportunities can be found under the Reports section of this 

website. 

HSBC believes an investor's decision to buy or sell a stock should depend on individual circumstances such as the investor's 

existing holdings and other considerations. Different securities firms use a variety of ratings terms as well as different rating 

systems to describe their recommendations. Investors should carefully read the definitions of the ratings used in each research

report. In addition, because research reports contain more complete information concerning the analysts' views, investors 

should carefully read the entire research report and should not infer its contents from the rating. In any case, ratings should not 

be used or relied on in isolation as investment advice. 

Rating definitions for long-term investment opportunities 

Stock ratings 

HSBC assigns ratings to its stocks in this sector on the following basis: 

For each stock we set a required rate of return calculated from the cost of equity for that stock’s domestic or, as appropriate, 

regional market established by our strategy team. The price target for a stock represents the value the analyst expects the stock 

to reach over our performance horizon. The performance horizon is 12 months. For a stock to be classified as Overweight, the 

potential return, which equals the percentage difference between the current share price and the target price, including the 

forecast dividend yield when indicated, must exceed the required return by at least 5 percentage points over the next 12 months

(or 10 percentage points for a stock classified as Volatile*). For a stock to be classified as Underweight, the stock must be 

expected to underperform its required return by at least 5 percentage points over the next 12 months (or 10 percentage points 

for a stock classified as Volatile*). Stocks between these bands are classified as Neutral. 

Our ratings are re-calibrated against these bands at the time of any 'material change' (initiation of coverage, change of volatility 

status or change in price target). Notwithstanding this, and although ratings are subject to ongoing management review, 

expected returns will be permitted to move outside the bands as a result of normal share price fluctuations without necessarily

triggering a rating change. 
4 

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*A stock will be classified as volatile if its historical volatility has exceeded 40%, if the stock has been listed for less than 12 

months (unless it is in an industry or sector where volatility is low) or if the analyst expects significant volatility. However, 

stocks which we do not consider volatile may in fact also behave in such a way. Historical volatility is defined as the past 

month's average of the daily 365-day moving average volatilities. In order to avoid misleadingly frequent changes in rating, 

however, volatility has to move 2.5 percentage points past the 40% benchmark in either direction for a stock's status to change. 

Rating distribution for long-term investment opportunities 

As of 22 May 2013, the distribution of all ratings published is as follows: 

Overweight (Buy) 44% (35% of these provided with Investment Banking Services) 

Neutral (Hold) 38% (34% of these provided with Investment Banking Services) 

Underweight (Sell) 18% (29% of these provided with Investment Banking Services) 

 

Share price and rating changes for long-term investment opportunities 

Norwegian Air Shuttle (NWC.OL) Share Price performance NOK Vs HSBC 

rating history

Recommendation & price target history 

From To Date 

N/A Underweight (V) 08 January 2013 

Underweight (V) Overweight (V) 19 April 2013 

Target Price Value Date 

Price 1 130.00 08 January 2013 

Price 2 190.00 22 February 2013 

Price 3 320.00 19 April 2013 

Source: HSBC 

23

73

123

173

223

273

May-08May-09May-10May-11May-12May-13

Source: HSBC 
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HSBC & Analyst disclosures 

None of the below disclosures applies to any of the stocks featured in this report. 

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2 HSBC expects to receive or intends to seek compensation for investment banking services from this company in the next 

3 months. 

3 At the time of publication of this report, HSBC Securities (USA) Inc. is a Market Maker in securities issued by this 

company. 

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5 As of 31 March 2013, this company was a client of HSBC or had during the preceding 12 month period been a client of 

and/or paid compensation to HSBC in respect of investment banking services. 

6 As of 31 March 2013, this company was a client of HSBC or had during the preceding 12 month period been a client of 

and/or paid compensation to HSBC in respect of non-investment banking securities-related services. 

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and/or paid compensation to HSBC in respect of non-securities services. 

8 A covering analyst/s has received compensation from this company in the past 12 months. 

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detailed below. 

10 A covering analyst/s or a member of his/her household is an officer, director or supervisory board member of this 

company, as detailed below. 

11 At the time of publication of this report, HSBC is a non-US Market Maker in securities issued by this company and/or in 

securities in respect of this company 

 

HSBC and its affiliates will from time to time sell to and buy from customers the securities/instruments (including derivatives) 

of companies covered in HSBC Research on a principal or agency basis. 

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For disclosures in respect of any company mentioned in this report, please see the most recently published report on that 

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* HSBC Legal Entities are listed in the Disclaimer below.

Additional disclosures 

1 This report is dated as at 23 May 2013. 

2 All market data included in this report are dated as at close 21 May 2013, unless otherwise indicated in the report. 

3 HSBC has procedures in place to identify and manage any potential conflicts of interest that arise in connection with its 

Research business. HSBC's analysts and its other staff who are involved in the preparation and dissemination of Research 

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price sensitive information is handled in an appropriate manner. 
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Disclaimer 

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(P) 068/04/2013 and MICA (P) 110/01/2013 
European Cockpit Association AISBL

Rue du Commerce 20-22, 1000 Brussels, Belgium I T +32 2 705 32 93 I F +32 2 705 08 77 I eca@eurocockpit.be I www.eurocockpit.be 

Ms Anniken Huitfeldt

Minister of Labour of Norway

Arbeidsdepartementet

postmottak@ad.dep.no

Brussels, 9 January 2013

Dear Minister Huitfeldt,

Re: Recruitment of non-National and non-European air crew by Norway

The European Cockpit Association, the European social partner representing over 38.000 pilots in 

Europe is concerned about the new legislation proposed in Norway to allow Norwegian airlines to hire

and base crews outside the EU while allowing them to fly in and within Europe. As the European 

Pilots’ Association, ECA will never accept such a move towards social dumping. Norway should seek 

to maintain fair labour legislation and not become a pioneer in providing cheap labour workforce for

Europe.

While the impacts of the recent financial crisis are still hitting many countries’ economy, it is of outmost 

importance to resist the temptation of short term strategies relying on the relaxation of labour law to 

allow cheap labour substitution and social dumping. 

Furthermore if these foreign crews were to operate within Europe while preserving the Norwegian 

internal market for EU crews only it would additionally generate unfair competition between European 

Countries. It is very inappropriate at the time when the European Commission has just received a 

strong political support from its Member States to tackle unfair competition environments in aviation. 

ECA supports its Norwegian colleagues in defending the principle of Norwegian and European 

preference for fulfilling the Norwegian and European positions. Europe should fight to preserve its 

competitive advantage based on skilled and highly trained labour.

There are many European pilots who find themselves unemployed as a result of the off-shoring of jobs 

outside the EU to places where airlines do not have to meet the regulatory or social standards we 

expect and impose with good reason in Norway and the EU. We cannot tolerate that in this very 

difficult situation, a European State opens the door to more social dumping and to increased pressure 

on the European Social model. Instead, Norway and the European Member States should consider

how to make sure non-European competitors operate to the same standards expected within the 

European Common Aviation Area. This would undoubtedly include setting international standards that 

prevent international competition based on social dumping. 

ECA urges the Norwegian government to reconsider and maintain the principle of Norwegian and 

European preference for jobs in the Norwegian airlines.

Yours sincerely,

Nico Voorbach Philip von Schöppenthau

ECA President ECA Secretary General
NORWEGIAN AIR INTERNATIONAL LIMITED (525771) Data Date: 17/12/2013

Page 1 Sourced from SoloCheck.ie

NORWEGIAN AIR INTERNATIONAL

LIMITED

Sourced from SoloCheck.ie

Data Date: 17/12/2013

Key Company Details

COMPANY NAME NORWEGIAN AIR INTERNATIONAL LIMITED

Registered Number 525771

Company Type SINGLE MEMBER PRIVATE COMPANY LIMITED BY SHARES

Incorporated 03/04/2013

Company Status NORMAL

Share Cap. Currency EURO

Authorised Capital 100,000,000

Last Annual Return 03/10/2013

Next Annual Return Due 03/10/2014

Last Accounts to Date

Registered Address 70 SIR JOHN ROGERSON'S QUAY

DUBLIN 2

Principal NACE Code 71.23 - RENTING OF AIR TRANSPORT EQUIPMENT

Mortgages and Charges

None Registered

Directors and Secretary

Directors Special Note

Please note that the information displayed on this printout as to the particulars of the directors and secretary of this company may not be complete or

up to date, as there may be unregistered documents which affect the position. Please refer to the list of Documents below, and if necessary, consult

the company file or images for full, up-to-date particulars as to the company's officers. If this printout is blank as to officer details, please consult the

images of the registered New Company documents.

Name MATSACK TRUST LIMITED

Title SECRETARY

Address 70, SIR JOHN ROGERSON'S QUAY,

DUBLIN 2.

Date of Birth November 1969
NORWEGIAN AIR INTERNATIONAL LIMITED (525771) Data Date: 17/12/2013

Page 2 Sourced from SoloCheck.ie

Name ASGEIR NYSETH

Title DIRECTOR

Address FISKERROKEN 7

N-9017

TROMOSE

NORWAY

Date of Birth March 1957

Other Directorships Click here to go directly to the SoloCheck.ie director page.

Name ROLF KRISTER ARRANIO

Title DIRECTOR

Address FORTVAGEN 128

18768 TABY

SWEDEN

Date of Birth October 1959

Other Directorships Click here to go directly to the SoloCheck.ie director page.

Name ANDERS TAGE LENNART CEDER

Title DIRECTOR

Address DALBACKAVAGEN 12

SE -247 51

DALBY

SWEDEN

Date of Birth August 1955

Other Directorships Click here to go directly to the SoloCheck.ie director page.

History of Documents

Status Sub

Number Submission

ACs To

Date / Date

Effective

Date

Received /

Registered

Buy

RECEIVED 8893550 / 1 B1 ANNUAL RETURN - NO ACCOUNTS 03/10/2013 23/10/2013 Buy

REGISTERED 8794486 / 1 B10 CHANGE IN DIRECTOR OR SECRETARY 12/08/2013 29/08/2013 Buy

REGISTERED 8794485 / 1 B10 CHANGE IN DIRECTOR OR SECRETARY 12/08/2013 29/08/2013 Buy

REGISTERED 8794483 / 1 B10 CHANGE IN DIRECTOR OR SECRETARY 12/08/2013 29/08/2013 Buy

REGISTERED 8766623 / 1 G1- SR ALTERATION TO MEMORANDUM O 12/08/2013 12/08/2013 Buy

REGISTERED 8766623 / 2 G1- SR ALTERATION TO MEMORANDUM O 12/08/2013 12/08/2013 Buy

REGISTERED 8571173 / 1 NEW COMPANY WITH MEMO & ARTS WITH

CAPITAL DUTY 03/04/2013 26/03/2013 Buy

REGISTERED 8571173 / 2 NEW COMPANY WITH MEMO & ARTS WITH

CAPITAL DUTY 03/04/2013 26/03/2013 Buy

REGISTERED 8571173 / 3 NEW COMPANY WITH MEMO & ARTS WITH

CAPITAL DUTY 03/04/2013 26/03/2013 Buy
NORWEGIAN AIR INTERNATIONAL LIMITED (525771) Data Date: 17/12/2013

Page 3 Sourced from SoloCheck.ie

Liquidators & Receivers

Liquidators Appointed: None Registered

Receivers Appointed: None Registered

Free Future Alerts

This company has been automatically added to your alerts list. This means that whenever a new document becomes

available for this company, we'll let you know, free of charge.

For further details, please see our Irish Company Alerts page.
C(io COMPANIES REGISTRATION OFFICE /f;» 

AN OIFIG UM CHLARU CUIDEACHTAI VII AI Submission Number: 8571173 

Al - Application to incorporate a company 11111111111111\\ll\\1111\11111111\\111111111111111 

Company Details 

Date 

Company details 

Company name 

New address 

26 March 2013 

Norwegian Air International Limited 

70 Sir John Rogerson's Quay 

Dublin 2 

5638558 

Company type 

Capital type 

Company email address 

Single member private company limited by shares 

Company with share capital 

katie.long@matheson.com 

Secretary details 

Do you know the CRO person number for this No 

individual? 

Secretary 

Type of entity 

Company name 

New address 

Irish registered Company 

Matsack Trust Limited 

70 Sir John Rogerson's Quay 

Dublin 2 

Name of the individual signing on behalf of the firm 

Individual details 

Surname 

Forename 

Coleman 

Gavin 

I - CoR. 0. -, 

2 lNAR 2013 

I hereby consent to act as secretary of the aforementioned company l 

and I acknowledge that as secretary I have legal duties and ---------Lf•C£IJ~t obligatio s imposed by the Companies Acts. _ 

Date 

Does this company have a Joint Secretary? No 

Directors 

Page 1 of 8 
~----- ------

C(io COMPANIES REGISTRATION OFFICE h'JJ AN OIFIG UM CHLARU CUIDEACHTAI \IW A I Submission Number: 8571173 

Director ( 1 ) 

I Director 

Do you know the CRO person number for this No 

individual? 

Director 

Resident 

Surname 

Forename 

Country of nationality 

Date of birth 

Occupation 

New address 

Other Directorships 

Individual Resident within EEA 

Lydon 

Shay 

IRELAND 

14 May 1975 

SOLICITOR 

9 Herbert Place 

Dublin 4 

Does this Director have Other Directorships? Yes 

Other Directorships list attached. 

I hereby consent to act as director of the aforementioned company 

and I acknowledge that as director I have legal duties and obligations 

imposed by the Companies Acts, other enactments and at common 

law. 

?&L 

Signature Date 

Page 2 of 8 
----------------· 

C(io COMPANIES REGISTRATION OFFICE f1l AN OIFIG UM CHLARU CUIDEACHTAI \!}/ AI Submission Number: 8571173 

Director ( 2 ) 

2 Director 

Do you know the CRO person number for this No 

individual? 

Director 

Resident 

Surname 

Forename 

Country of nationality 

Date of birth 

Occupation 

New address 

Other Directorships 

Individual Resident within EEA 

Beashel 

Joseph 

IRELAND 

5 March 1969 

SOLICITOR 

9 Wendon Park 

Delgany Wood 

Delgany 

Co. Wicklow 

Does this Director have Other Directorships? Yes 

Other Directorships list attached. 

I hereby consent to act as director of the aforementioned company 

and I acknowledge that as director I have legal duties and obligations 

imposed by the Companies Acts, other enactments and at common 

Jaw. 

···-··1.: Si ture Date 

Page 3 of 8 
C(io COMPANIES REGISTRATION OFFICE f!'/b 

AN OIFIG UM CHLARU CUIDEACHTAI \!lf 

Authorised Share Capital 

Authorised Share Capital 

1 

Total value 

Currency 

Total number 

Made up as follows: 

1 

Number of Shares 

Currency 

Class 

Nominal value per share 

Issued Share Capital 

Issued Share Capital 

1 

Total value 

Currency 

Total number 

Made up as follows: 

1 

Number of Shares 

Currency 

Class 

Consideration for each share 

100000000 

Euro 

100000000 

100000000 

Euro 

Ordinary 

I 

Euro 

Euro 

Ordinary 

I 

AI Submission Number: 8571173 

Page 4 of 8 
Cr',o COMPANIES REGISTRATION OFFICE lritJ 

I ' AN OIFIG UM CHLARU CUIDEACHTAf VJ/ 

Subscribers to memorandum 

Subscribers to memorandum 

1 

Company number 

Registered in 

Company name 

172157 

IRELAND 

MA TSACK NOMINEES 

LIMITED 

Name of the individual signing on behalf of the firm 

Surname 

Forename 

Subscriber/ Agent 

~re 

Attachments 

Beashel 

Joseph 

Subscriber 

as.·()~.\:, 

Date 

AI Submission Number: 8571173 

Page 5 of 8 
-· 

C(io COMPANIES REGISTRATION OfFICE f1l AN OIFIG UM CHLARU CUIDEACHTA[ \j/ A I Submission Number: 8571173 

Declaration of compliance and section 42(2) declaration 

Declaration of compliance and section 42(2) declaration 

I 

Surname 

Forename 

of(address) 

do solemnly declare that I am a 

Beashel 

Joseph 

9 Wendon Park 

Delgany Wood 

Delgany 

Co Wicklow 

Director 

and that all the requirements of the Companies Acts 1963 to 2012 in respect of the registration of the said company, and of 

matters precedent and incidental thereto have been complied with and that Form A I has been completed in accordance with the 

Notes on Completion of form AI 

I further declare that the purpose, or one of the purposes, for which the company is being formed is the carrying on by it of an 

activity in the State and that it appears to me that the activity can be classified in accordance with the relevant classification 

system as follows: 

NACE Code and that the general nature of the 71.23: Renting of air transport equipment 

activity is 

I further declare that the place or places in the State where it is proposed to carry on the activity is/are 

70 Sir John Rogerson's Quay 

Dublin 2 

and that the place where the central administration of the company will normally be carried on will be 

70 Sir John Rogerson's Quay 

Dublin 2 

I further declare that this form, including the company capital and stamp duty statement which is required by section 

117 Stamp Duties Consolidation Act 1999, has been fully and accurately completed. 

And I make this solemn declaration conscientiowly believing the same to be true and by virtue of the Statutory 

Declarations Act 1938. 

Signature of declarant 

~<-~ .z._.., 

Declar d efore me (name of witness in capitals) 

boi"'A~'~ -;; ~<tJIR6A11 \J [ ] Commissioner of oaths [ ] Peace commissioner []Notary public 

[]Person authorised by S -=\-d, S:Q. (F\~ C'ck \C\8\.., to take and receive statutory declarations 

Practising solicitors are authorised wtder sectioJl 2 Solicitors (Amendment) Act 1994 to take statutory declarations. 

[~ho is personally known to me 

Page 6 of 8 
-------------------

C(io COMPANIES REGISTRATION OFFICE lrJI 

AN OIFIG UM CHLARU CUIDEACHTAI Vlf AI Submission Number: 8571173 

or/ 

[V'\Vho is identified to me by 

or 

whose identity has been established to me before the taking of this Declaration by the production to me of: 

by the authorities of _______________ _ 

which is an authority recognised by the Irish Government 

which is an EU Member State, the Swiss Confe ation or a Contracting Party to the EEA Agreement 

or [] Aliens Passport no. issued on _________ _ 

which is an authority reco 

or []Refugee travel d wnent no __________ issued on, _________ _ 

by the Minister r Justice, Equality and Law Reform 

'----------issued 

the Minister for Justice, Equality and Law Reform 

At 

Signature of witness 

.--

0 

I 

Page 7 of 8 
• 

C(io COMPANIES REGISTRATION OFFICE /t:tJ AN OIFIG UM CHLARU CUIDEACHTAI VI A I Submission Number: 8571173 

Particulars of the presenter 

Reference number 

Fe Phrainn number 

Type of entity 

Name 

Address 

E-mail address 

Telephone number 

Fax number 

Legal references 

Collective Citation: 

Companies Acts, 1963 to 20 12 

Application to incorporate a company 

663502/1 

98 

Other body corporate formed in Ireland 

Matheson 

70 Sir John Rogerson's Quay 

Dublin 2 

Ireland 

katie.long@matheson.com 

353 I 2322000 

353 I 2323333 

Section 3 and 3A (inserted by section 101 Company Law Enforcement Act 2001) Companies 

(Amendment) Act 1982 

Section 5 Companies (Amendment) Act 1983 

European Communities (Single-Member Private Limited Companies) Regulations 1994 

Sections 42 and 43, section 44 (other than subsection (2)) and section 45 (other than subsections (3)(b) 

and (5)) Companies (Amendment)(No. 2) Act 1999 (as amended by section 10 Companies Amendment 

Act 2009) 

Section 117 Stamp Duties Consolidation Act 1999 

Companies Act 1990 (Form and Content of Documents Delivered to Registrar) Regulations 2002 

Page 8 of 8 
Joseph Beashel 

Directorships Report 

All Directorships Held 

As At and After 26/03/2003 

Person Details 

Name: Joseph Beashel 

QuickRef: BEASHEL-J 

Occupation: Solicitor 

Nationality: Irish 

Date of Birth: 05/03/1969 

Addresses 

9 Wendon Park 

Delgany Wood 

Delgany 

Co. Wicklow 

Ireland 

Directorships 

compafiYJiNam·e,- •:;'.. ~·., •??.lf: t. . . .. · ;· s . ·•:'~"~ .~. 

Chartis International Consulting Limited (Dissolved) 

Chartis Ireland Limited (Dissolved) 

Chartis Limited (Dissolved) 

Chartis Risk Management Services (Ireland) Limited 

(Dissolved) 

Covestone QIF Public Limited Company 

GOF II AND GOF Ill INTERNATIONAL FINANCE 

LIMITED 

JH Project Search- 1 Limited (Dissolved) 

MAN AHL UMBRELLA QIF PUBLIC LIMITED COMPANY 

Mars Capital Funding No. 1 Limited 

MORAR IRELAND FUND PUBLIC LIMITED COMPANY 

Date 26/03/2013 

.Co:Uritry ~ ·. :: ':'L L;,.;;: 

Ireland 

Ireland 

Ireland 

Ireland 

Ireland 

Ireland 

Ireland 

Ireland 

Ireland 

Ireland 

~AppoiiifeCII~ 

27/07/2009 

27/07/2009 

27/07/2009 

27/07/2009 

31/05/2011 

12/03/2013 

27/07/2009 

01/03/2013 

02/10/2012 

30/01/2013 

Page 1 
Date 26/03/2013 

Joseph Beashel 

Directorships Report 

Page 2 
---- ---- ~-- -------- ---- - --------------------------

Joseph Beashel 

Directorships Report 

17/02/2012 

Ireland 

Date 26/03/2013 Page 3 
- ----- ------ Joseph Beashel 

Directorships Report 

Companv Name Country AppoiiMif ,,; -R~i9n~d~ 

PAGEPATH LIMITED Ireland 30/04/2007 28/05/2007 

Pan (Risk) Limited Ireland 12/07/2011 28/07/2011 

PB DOMICILIO 2007-1 LIMITED Ireland 11/05/2007 01/06/2007 

PB LEASING AIRCRAFT NO 23 IRELAND LIMITED Ireland 14/05/2012 22/05/2012 

PEGASUS AVIATION A330-3 LIMITED Ireland 29/11/2006 08/12/2006 

PINTILIAN LIMITED Ireland 16/05/2006 24/05/2006 

Pioneer Aviation Limited Ireland 06/12/2007 08/05/2008 

PTRS EuroLF 2 Limited Ireland 02/03/2012 05/03/2012 

PTRS EuroLFI Limited Ireland 12/12/2011 15/12/2011 

Q Aviation Ventures IV Limited Ireland 18/11/2010 28/02/2011 

RED & BLACK PRIME RUSSIA MBS N0.1 LIMITED Ireland 10/01/2007 23/01/2007 

RPI Acquisitions (Ireland) Limited Ireland 24/02/2012 24/02/2012 

RUSSIAN AUTO LOAN SECURITIZATION 1 LIMITED Ireland 09/08/2007 13/08/2007 

SC GERMANY AUTO 07-2 LIMITED Ireland 10/05/2007 08/06/2007 

SC Germany Auto 2009-1 Limited Ireland 30/09/2009 02/10/2009 

SCONTOFINANCE LIMITED Ireland 30/11/2006 12/12/2006 

SEGAIS FINANCE LIMITED Ireland 2710712007 29/08/2007 

Shipping Securitisation ABS Funds 1 Limited Ireland 06/12/2007 12/12/2007 

Shipping_ Securitisation ABS Funds 2 Limited Ireland 06/12/2007 12/12/2007 

Shipping Securitisation ABS Funds 3 Limited Ireland 06/12/2007 12/1212007 

Shipping Securitisation ABS Funds 4 Limited Ireland 06/12/2007 12/12/2007 

SHORT-TERM INVESTMENTS COMPANY (GLOBAL Ireland 29/12/2000 31/05/2004 

SERIES) PUBLIC LIMITED COMPANY 

SIBARIMY LIMITED Ireland 22/11/2005 31/08/2007 

SURADARANT LIMITED Ireland 22/11/2005 15/02/2009 

TITHEMENT LIMITED Ireland 28/11/2005 31/08/2007 

TONKRIBI LIMITED Ireland 22/11/2005 31/08/2007 

Transportation Partners Limited Ireland 15/01/2013 23/01/2013 

Troon Capital Markets Limited Ireland 27/05/2010 22/06/2010 

TRUESTAR LIMITED Ireland 15/06/2006 22/02/2008 

TTM TECHNOLOGIES (IRELAND) EU LIMITED Ireland 28/11/2005 25/09/2006 

TTM TECHNOLOGIES (IRELAND) LIMITED Ireland 28/11/2005 25/09/2006 

UINTA VI LIMITED Ireland 12/03/2007 10/04/2007 

Uinta X Limited Ireland 06/12/2007 11/12/2007 

ULSTER AVIATION LEASING LIMITED Ireland 15/03/2007 15/03/2007 

Vigo Remittance Ireland Limited Ireland 21/04/2008 02/05/2008 

VITYAZ1WO LIMITED Ireland 08/11/2007 15/01/2008 

WRENWOOD INVESTMENTS (IRELAND) LIMITED Ireland 27/09/2006 05/10/2007 

(Dissolved) 

ZOO HF 3 PUBLIC LIMITED COMPANY Ireland 01/12/2006 04/12/2006 

Date 26/03/2013 Page 4 
Joseph Beashel 

Directorships Report 

Past External Directorships 

CoriiiiaiiyJName . . Coulltrv AllPI~·-rcl ~010 e, · Jc, R-igT 'd .·'i:i . ~0s01 ne 

HARIBRAK LIMITED Ireland 28/11/2005 10/11/2006 

INVESCO Absolute Return Fund Pic Ireland 15/05/2002 31/05/2004 

INVESCO Absolute Return Master Fund pic Ireland 15/05/2002 31/05/2004 

INVESCO Dynamic Structured SPC Funds Cavman Islands 1810212003 31105/2004 

INVESCO European Warrant Fund Luxembourg 28/09/2001 31/05/2004 

INVESCO GT Continental European Fund LuxembourQ 17/09/2001 31/05/2004 

INVESCO GT Continental European ManaQement S.A Luxembourg 17/09/2001 31/05/2004 

INVESCO GT Indian Companies (Mauritius) Fund Limited Mauritius 31105/2004 

INVESCO GT Investment Fund LuxembourQ 17109/2001 31/05/2004 

INVESCO GT Investment Management Company SA Luxembourg 17/09/2001 31/05/2004 

INVESCO GT Management S.A Ireland 17/09/2001 31/05/2004 

INVESCO GT SICAV Luxembourg 28106/2002 31/05/2004 

INVESCO GT Taiwan Growth Fund (Liquidated) Luxembourg 17/0912001 31/05/2004 

INVESCO GT Taiwan Growth Management SA Luxembourg 17/09/2001 31/05/2004 

INVESCO GT US Small Companies Fund LuxembourQ 1710912001 31105/2004 

INVESCO GT US Small Companies Management SA Luxembourg 17/09/2001 31/05/2004 

INVESCO International SA Ireland 17/09/2001 31/05/2004 

INVESCO Maximum Income Fund Luxembourg 17/09/2001 31/05/2004 

INVESCO Maximum Income Management SA Luxembourg 17109/2001 31105/2004 

INVESCO Series Management SA LuxembourQ 17/09/2001 31/05/2004 

INVESCO Taiwan Growth Management SA Luxembourg 17/09/2001 31/05/2004 

INVESCO US Equity Market Neutral Fund Pic Ireland I 31/05/2004 

Treon Capital Markets Limited Ireland 

/ 

I 27/0512010 22106/2010 

Date 26/03/2013 Page 5 
---~--------- --- --

SHAY LYDON 

Directorships Report 

All Directorships Held 

As At and After 26/03/2003 

Person Details 

Name: SHAY LYDON 

QuickRef: L YDON-S 

Occupation: Solicitor 

Nationality: Irish 

Date of Birth: 14/05/1975 

Addresses 

~ >·: • .. · ~'-. . ~ Home 

9 Herbert Place 

lrishtown 

Dublin 4 

Ireland 

Directorships 

corii'Panvi.Name. .· 

BRISTLECONE SYSTEMATIC STRATEGIES PUBLIC 

LIMITED COMPANY 

HIGHBRIDGE SPECIALITY LOAN INSTITUTIONAL 

HOLDINGS LIMITED 

HYPERION LIFE FUND II PUBLIC LIMITED COMPANY 

HYPERION MASTER FUND Ill PUBLIC LIMITED 

COMPANY 

I MAP Danube Public Limited Company 

I MAP Klee Public Limited Company 

I MAP VASAREL Y PUBLIC LIMITED COMPANY 

TMI Liquidity Fund Series Public Limited Company 

Date 26/03/2013 

·. Cot.fntry ·• 

Ireland 

Ireland 

Ireland 

Ireland 

Ireland 

Ireland 

Ireland 

Ireland 

, Worl<~~;:~tr~,r-' · 

.. Aill>oii'ited 

21/04/2010 

28/02/2013 

02/09/2011 

02/09/2011 

12/01/2011 

02/09/2011 

20/02/2013 

27/10/2011 

: ~ ,,,:·.,~-; ~. 

Page 1 
SHAY LYDON 

Directorships Report 

21/01/2010 01 10 

12 04/04/2012 

Date 26/03/2013 Page 2 
--------------------- -------------

SHAY LYDON 

Directorships Report 

I I 

mbrella Company 

Ireland 10 

Date 26/03/2013 Page 3 
Recrutement add NLH/NAI 

Job 

Company 

8787 Non Type Rated Captain Norwegian 

Rishworth ~ ""'"'~ ..... ,•~""''"'.'""..,.~ ""'""'~'~"1m 

B787 Non Type Rated Captain Norwegian 

Contract Term: 3 years renewable 

Operational Base: Bangkok, Thailand 

Ref: 775 

Flight Crew 

Contract 0 

Created on 5-Jul-2013 

Screenings are to be held in Oslo in August and November 2013 

Rishworth Aviation 

admln@rlshworthavlation.com 

64 9302 0080 

On behalf of Norwegian Long Haul A/S we are looking for Captains to fly Norwegian's new B787 Dream liners. The ideal 

candidate is a current B777 Captain. This is a great opportunity to Captain the B787 Dreamliner. 

Benefits: 

• Great Pay and Per Diems 

• Com muong possibilities to Europe during days off 

• Layover accom modatlon and ground transportation provided by Norwegian 

• Travel benefits for pilot and qualifying family members 

• Medical Repatriation insurance is provided by Rishworth at no charge. Loss of Income insurance can be added for 

a nominal fee 

For more details and to fast track your application please APPLY NOW and register at www.rishworth.aviation.com, once 

registered you will be able to view the fUll job description including pay. If you are registered already please login to your 

pilot portal. 

Pilots who don't yet meet these experience requirements are Invited to register and update their details 

at www.rishworthaviatlon.com. When your experience matches our position requirements, we will be able to notify you of 

positions which you qualify for, which may be of interest to you. 

Required Qualifications 

Minimum Requirements: 

• JAA/EASA License 

• EU passport 

• 5000 hours total time 

• 2000 PIC hours on any Boeing aircraft 

• 500 PIC widebody Boeing hours 

• Current B777, B767/B757 or B747-400 type rating 

• Under 61 years old at date off application 
GCA EMPLOYMENT AGREEMENT 2012 

© Global Crew Asia Pte Limited 

1

GLOBAL CREW ASIA PTE., LIMITED

- and -

(Pilot Name)

EMPLOYMENT AGREEMENT 

FOR ASSIGNMENT TO

NORWEGIAN LONGHAUL SINGAPORE PTE., LIMITED

CONFIDENTIAL
GCA EMPLOYMENT AGREEMENT 2012 

© Global Crew Asia Pte Limited 

2

AGREEMENT dated 2012

BETWEEN:

(1) GLOBAL CREW ASIA PTE LIMITED a company incorporated under the laws of the Republic of 

Singapore and having its registered office at 10 Anson Road 35-06A International Plaza, 

Singapore 079903 ("EMPLOYER”); and

(2) ( Pilot) of ( Address) ("Employee").

1. INTERPRETATION

1.1 Definitions

In this Agreement, unless the context otherwise requires:

“Aircraft” means the current passenger aircraft operated by the Client.

“Base” means Bangkok or such other location specified by Employer on 2 months’ notice.

“Client” means the Employer’s client airline Norwegian Longhaul Singapore Pte., Limited based in 

Singapore.

“Commencement Date” means the date when the Employee reports to Client to start Ground 

Course, Type Rating or Difference Training, whichever comes first.

“Extended Outstation Layover” means 4 or more consecutive days off at an outstation other 

than Base.

“EUR” means the legal currency of the Eurozone of the European Union.

“Operational Duty” means from the time the Crew Member reports for duty until the end of such 

duty according to EU/ OPS Subpart Q and includes any of the following;

(i) flight duty as part of an operating flight crew; or

(ii) deadheading/positioning; or

(iv) standby duty; or 

(v) simulator flight duty; or

(vi) proficiency, training or recurrency required by the Client.

"Qualifications" means the qualifications set out in Item 3 of Schedule 1.

“Taxes” means any tax, duty, withholding, deduction, impost, contribution, levy or charge 

(including any social security charges or contributions) in respect of the payments, salary 

remuneration and benefits provided to the Employee under this Agreement.

1.2 Headings: Clause and other headings are for ease of reference only and shall not be deemed to 

form any part of the context or to affect the interpretation of this Agreement.

1.3 Clauses: References to Clauses are references to Clauses of this Agreement.

1.4 Plural and Singular: Words importing the singular number shall include the plural and vice versa.

1.5 Name

1.6 Schedules: This Agreement includes the Schedules to it.

2. EMPLOYMENT 

2.1 The Employee is employed by the Employer in the capacity specified in Item 1 of Schedule 1.
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2.2 The Employee’s employment is subject to the Employee meeting the requirements of Item 3 of 

Schedule 1.

3. DUTIES

3.1 The Employee will perform the duties specified in Item 2 of Schedule 1 and such other duties as 

may from time to time be assigned to the Employee and shall comply with all reasonable 

directions, procedure and policies of the Employer.

3.2 When providing pilot services to the Client, the Employee shall be subject to the authority, direction

and control of the Client and the Employee shall comply with the Client’s directions, instructions 

rules, regulations, policies and operating procedures and such other rules and regulations 

applicable to the Employee’s duties.

3.3 The Employee shall act in good faith, with all due care, perform the duties with skill and diligence 

and shall use best endeavours to promote and protect the interests of Employer and the Client, 

shall devote the whole of the Employee’s time, attention and abilities during the performance of 

duties and at such other times as the Employer (or the Client) may require for the performance of 

such duties.

3.4 For the purposes of the duties to be undertaken by the Employee the Employer shall provide or 

procure that the Employee is provided with the items set out in Schedule 2.

4. TERM 

4.1 Employment will commence on the Commencement Date and will, unless extended by written

agreement between the parties, terminate automatically 36 months from the Commencement 

Date, subject to earlier termination in accordance with this Agreement. The Employee’s 

employment may be renewed for a further term subject to the mutual agreement of both parties.

5. PLACE AND HOURS OF WORK

5.1 The Employee will provide services to the Client at such locations and times as the Client or the 

Employer may direct from time to time and as may be reasonably required by the Employer in 

order for the Employee to properly perform their duties.

5.2 The Employee will be rostered up to the maximum duty time allowed by the relevant CAA and for a 

minimum of 8 days free of duty in any full calendar month (prorated for any part month). 

5.3 The Employee may request Extended Outstation Layover and where granted by the Client the 

Employee accepts that the EOL includes weekly rest days.

5.4 The Employee's salary at Clause 6.1 below fully compensates the Employee for all hours worked. 

6. REMUNERATION

6.1 Employer shall for the period from the Commencement Date until the termination of this Agreement

pay the Employee the monthly payments as follows:

(a) Salary of [Type Rating Instructor (TRI) EUR 11,000 /Captain EUR 9,000/ Relief Captain EUR 

7,000/ First Officer EUR 5,000];(delete as applicable)

(b) EUR 1,000 for per diems to cover work related expenses; and 

such payment to be prorated for any employment commencing or terminating part way through a 

month.
GCA EMPLOYMENT AGREEMENT 2012 

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(c): Where the Employee performs the duties set out below, the Employer will pay the Employee as 

follows;

(i) Line Training Captain duties, EUR 20 per block hour of line instruction; 

(ii) Check Captain duties, EUR 40 per block hour of line checks; 

(iii) Simulator Instructor duties, EUR 40 per simulator hour; and 

The payments under this Clause 6.1.(c) will be included in the monthly payment to the Employee 

in the month following the month in which such duties were performed.

6.2 The payments specified in Clause 6.1 above are before Taxes and shall be paid in arrears. The 

above stated payments are the total remuneration payable to the Employee inclusive of all benefits 

and no overtime rates or additional payments will apply.

6.3 Payment shall be sent from Employer’s bank account to an account to be nominated by the 

Employee for each month of completed service, no later than the 28th day of the month of 

service,(less any bank transfer charges payments to more than one bank account. Where the 28th 

day falls on a weekend or public or bank holiday, payment shall be sent on the next working day.

7. TAXES

7.1 The Employee shall be responsible for all Taxes (including income tax liability,) relating to the 

Employee or to this Agreement, and shall:

(i) file all tax returns and pay any required Taxes as they fall due in any applicable jurisdiction; 

(ii) provide the Employer with documentation evidencing the Employee ́s payment of Taxes set 

out under Clause 7.1 (i) above;

(iii) if the Employee is a Norwegian citizen and/or resident for tax purposes report the Employee ́s 

income to the Norwegian tax authorities and provide satisfactory evidence of payment of 

Taxes in Norway 

(iv) indemnify the Employer and/or the Client in respect of any failure to comply with any 

applicable tax laws.

7.2 Notwithstanding the Employee’s obligations in Clause 7.1 above the Employer shall be entitled to 

withhold any outstanding Taxes owed by the Employee or required to be deducted under the laws 

of Singapore (if any) or any other jurisdiction, including following termination of this Agreement.

8. LEAVE, STATUTORY HOLIDAYS AND TIME OFF

8.1 Annual leave

Employee is entitled to paid annual leave as follows:

(i) the Employee's entitlement shall accrue on a pro-rata basis at the rate of 2 days during each 

month of their employment from the first day of their employment;

(ii) annual leave may, with the agreement of the Employer, be taken in advance, but this is 

conditional on the leave taken in advance by the Employee being deducted from his leave 

balance once it accrues or the value of such leave being deducted from any monies paid to the 

Employee hereunder;

(iii) the time for taking annual leave may be agreed between the Employer, the Client and 

Employee, but failing agreement the Employer may, after consultation with the Employee, and 

having taken into account work requirements and the opportunities for rest and recreation 

available to the Employee, provide at least 14 days’ notice to the Employee directing them to 

take annual leave commencing on a particular date;

(iv) the Employee agrees that the Employer may pay him for annual leave in the pay that relates to 

the period during which the leave is taken;
GCA EMPLOYMENT AGREEMENT 2012 

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(v) the Employee acknowledges and agrees that the leave provision in this Clause 8.1 above is 

inclusive of applicable public holidays and no additional payment will be made in this respect.

8.2 Payment for Work on a Day Off

If the Employee agrees to work on a rostered day off the Employer will pay the Employee at the 

rate of 1/10 x the monthly salary specified at Clause 6.1 (a) for each day worked.

8.3 Unpaid Leave

Unpaid leave shall be granted at the sole discretion of the Employer. 

8.4 Sick Leave

The Employee is entitled to a maximum of 30 days of paid sick leave per calendar year (pro-rated 

for any part year). The Employee must notify the Employer and/or the Employee’s immediate 

supervisor as soon as practicable if unable to work for medical reasons. Such notice shall be given 

within the first four (4) hours of the working day.

8.5 If the Employee has been absent from work for at least 5 consecutive days because of illness, the 

employee shall provide a medical certificate. 

8.6 The Employer shall be entitled to require the Employee to undergo a medical examination by a 

registered medical practitioner nominated by the Employer. In assessing the Employee's fitness for 

work, the Employer shall take into account any report provided as a result of that examination, and 

any other medical report provided by the Employee within a reasonable time-frame. 

8.5 Compassionate Leave

(i) Leave with pay up to a maximum of three days may be granted by the Employer for 

compassionate reasons. If compassionate leave is required in excess of three days, the 

Employer may consider granting an additional days' leave.

(ii) "Compassionate reasons" is defined as the critical illness or death of a parent, child, spouse, 

sister, brother, grandparent or parent-in-law. "Critical illness" is defined as illness of a nature 

warranting the patient to being classified by the relevant hospital as dangerously or critically ill.

8.6 Maternity Leave 

Leave shall be granted by the Employer in accordance with the laws of Singapore.

9. TERMINATION 

9.1 The Employer may terminate this Agreement, by giving not less than 30 days’ written notice; or, at 

Employer’s discretion paying the Employee one month’s salary in lieu of such notice; and 

9.2 The Employee may after 6 months terminate this Agreement, by giving not less than 90 days’

notice;

9.3 Employer may terminate this Agreement by immediate notice if:

(a) the Employee fails or ceases to hold any of the Qualifications;

(b) the Employee commits a breach of the terms of this Agreement, serious misconduct, 

disobedience or neglect of duty. Without limitation, the following events shall be serious 

misconduct for the purposes of this Clause:

(i) the Employee wilfully neglects the interests of the Client or Employer or damages the 

Client's property through negligence; or

(ii) the Employee is continuously absent from work for more than 2 days without approval 

or without reasonable excuse; or
GCA EMPLOYMENT AGREEMENT 2012 

© Global Crew Asia Pte Limited 

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(iii) the Employee consumes alcohol in contravention of the Client's in-house rules 

applicable to its Employees or any applicable rules of any relevant aviation 

supervisory authority as the same may be amended from time to time; or

(iv) the Employee fails or refuses to comply with any reasonable or lawful direction of the 

Employer or the Client or with any in-house rules or policies of the Client applicable to 

the provision of the Services; or

(v) the Employee engages in conduct on or off duty which is prejudicial to the interest, 

good name or reputation of the Client or Employer; or

(vi) the Employee is dishonest or commits theft including theft of the Client's property; or

(vii) the Employee engages in smuggling or illicit trading of any kind; or

(viii) the Employee ceases to hold, (for any period of time), any one of the permits or travel 

documents, (including visas), necessary to provide the Services; or

(ix) the Employee engages in harassment of a work colleague or customer.

9.4 If the Employee terminates this Agreement prior to completion of the term specified in Clause 4.1

and fails to provide 90 days’ notice the Employee agrees to pay to Employer the equivalent of up 

to one month’s salary entitlement as specified in Clause 6 above;

9.5 On termination all sums owing to the Employer under this Agreement shall be immediately payable 

by the Employee. The Employer may deduct any outstanding debts, overpayments, or money 

owed to it by Employee from final pay or holiday pay.

10. RETRENCHMENT

10.1 In circumstances where:

(a) The Employer’s agreement with the Client for the provision of services of flight personnel is 

terminated, suspended or otherwise comes to an end; or 

(b) Client terminates its agreement with the Employer with respect to Employee; or

(c) Client has a liquidator or receiver appointed in respect of the Client; or 

(d) if the Client: 

(i) is the subject of a winding up petition; or

(ii) passes a winding up resolution; or 

(iii) fails to maintain any licences required by law or any competent regulatory authority; or 

(iv) ceases to carry on business or meet its financial obligations; or

 

(e) The Employee’s role is made redundant or retrenched,

then the Employer shall be entitled to terminate this Agreement by giving 30 days’ written notice to 

the Employee and Employee shall not be entitled to any additional payment or payment or 

compensation for redundancy or retrenchment.
GCA EMPLOYMENT AGREEMENT 2012 

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11. OTHER EMPLOYMENT OBLIGATIONS 

11.1 The Employee shall not, whether during the currency of this Agreement or after its termination for 

whatever reason, use, disclose or distribute to any person or entity, otherwise than as necessary 

for the proper performance of their duties and responsibilities under this Agreement, or as required 

by law, any confidential information, messages, data or trade secrets acquired by the Employee in 

the course of performing their services under this Agreement. This includes, but is not limited to, 

information about the Employer's or the Client’s business. 

11.2 All work produced for the Employer by the Employee under this Agreement or otherwise and the 

right to the copyright and all other intellectual property in all such work are the sole property of the 

Employer. 

11.3 The Employee agrees that there are no contracts, restrictions or other matters which would 

interfere with their ability to discharge their obligations under this Agreement. If, while performing 

their duties and responsibilities under this Agreement, the Employee becomes aware of any 

potential or actual conflict between their interests and those of the Employer, then the Employee 

shall immediately inform the Employer. Where the Employer forms the view that such a conflict 

does or could exist, it may direct the Employee to take action(s) to resolve that conflict, and the 

Employee shall comply with that instruction. When acting in their capacity as Employee, the 

Employee shall not, either directly or indirectly, receive or accept for their own benefit or the benefit 

of any person or entity other than the Employer any gratuity, emolument, or payment of any kind 

from any person having or intending to have any business with the Employer. 

11.4 During the term of this Agreement, the Employee shall not, without the prior written approval of the 

Employer, whether paid or unpaid, be directly or indirectly engaged in any other employment.

11.5 The Employee shall comply with all company rules, policies and directions, as notified by the 

Employer from time to time. The Employer is entitled to amend, cancel or introduce such rules, 

policies and directions, as it considers necessary.

11.6 The Employee agrees that for a period of 6 months following the termination of their employment 

for whatever reason, they shall not, either personally, or as an employee, consultant or agent for 

any other entity or employer, seek to solicit or engage or employ any employee of the Employer. 

The Employee agrees with these provisions and receives consideration in the total remuneration 

package.

12. RETURN OF PROPERTY ON TERMINATION

The Employee shall, on termination of this Agreement, return to the Client and/or the Employer all 

manuals, items of uniform, identity card and any other items of property issued to the Employee by 

or on behalf of the Client. 

13. HEALTH AND SAFETY 

The Employer shall comply with all applicable health and safety legislation. 

The Employee shall comply with all applicable health and safety laws and regulations in any 

jurisdiction in which the Employee performs duties and with all directions and instructions from the 

Employer and/or the Client regarding health and safety; and

Familiarise him/herself with and comply with any health and safety documentation issued by the 

Employer and/or the Client and provided to the Employee including without limitation as contained 

in the Client’s standard operating procedures rule or regulations and any employee hand book and

shall also take all reasonable steps to ensure that in the performance of their employment they do 

not undermine their own health and safety or the health and safety of any other person.
GCA EMPLOYMENT AGREEMENT 2012 

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14. EMPLOYMENT DISPUTES

If the Employee considers that there is a problem, including any problem with the Client, the 

problem should be raised as soon as possible with the Employer. This can be done in writing or 

verbally. The parties use reasonable efforts will then try to establish the facts of the problem and 

discuss possible solutions.

15. OTHER CONTRACTUAL CLAUSES 

15.1 Variation of Agreement

The parties may vary this Agreement, provided that no variation shall be effective or binding on 

either party unless it is in writing and signed by both parties. 

15.2 Assignment and Transfer

The Employee must personally perform the duties and responsibilities under this Agreement and 

no subcontracting or assignment by the Employee is permissible. 

The employer reserves the right to transfer the employees to another party on the same or 

substantially materially similar terms and conditions of employment as set out the Agreement. The 

Employees acknowledges and agrees that the Employees rights and obligations will continue as 

they were with the transferring party.

15.3 Waiver

No failure to exercise, or delay in the exercise of, any right or remedy either party may have under 

or in connection with this Agreement shall operate as a waiver thereof nor shall any single or partial 

exercise of any such right or remedy prevent any further or other exercise thereof of any other such 

right or remedy. 

15.4 Severability

In the event any provision (or part thereof) of this Agreement is viewed as unenforceable by any 

authority or court with jurisdiction to consider such clauses, the offending provision (or part thereof) 

shall be deemed severed from this Agreement without affecting the validity of the remainder of this 

Agreement, which will be applied as modified by the authority or the court, or in the event it is not 

modified by the authority or court, the remainder of this clause and Agreement shall continue to be 

enforceable by the parties. 

15.5 Deductions from Salary/Wages

Where requested by the Employee, the Employer may agree to deduct from their salary/wages any 

agreed amount and pay the amount to the organisation specified by the Employee. The Employer 

shall also be entitled to deduct from any salary payment payable upon termination of employment 

any overpayment made to the Employee for leave taken in advance. 

15.6 Employee Acknowledgment

Employee acknowledges that:

i) they have been advised of their right to take independent advice on the terms of this 

Agreement;

ii) they have been provided with a reasonable opportunity to take that advice;

iii) they have read these terms of employment and understand these terms and their 

implications; 

iv) they agree to be bound by these terms of employment and the Employer's and the Client’s 

policies and procedures as implemented by the Employer from time to time; and

v) the Employee has disclosed and will continue to disclose all information about the 

Employee that would ensure the Employer can make a determination about the 

Employee’s suitability for employment by the Employer.
GCA EMPLOYMENT AGREEMENT 2012 

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15.7 Media Communications

The Employee shall not provide, publish or disclose information in any form, or speak on behalf of 

the Employer or the Client on any matter relating to the business activities Employer or the Client,

or to this Agreement or the work to be undertaken by the Employee under this Agreement. All 

requests for information or interviews or for the disclosure of information shall be referred by the 

Employee to the Employer.

15.8 Governing Law and Dispute Resolution

This Agreement shall be governed by and construed in accordance with the laws of Singapore. In 

relation to any legal action or proceedings arising out of or in connection with this Agreement the 

parties hereby irrevocably submit to the non-exclusive jurisdiction of the courts of the Republic of

Singapore.

SIGNED as an Agreement

for )

GLOBAL CREW ASIA LIMITED ) ...................................................

by: )

Date: ...................................................

Address for Notices: info@globalcrewasia.com

by )

( ........................ ) ) ...................................................

the Employee: )

Date: ...................................................

Address for Notices:

Fax for Notices:

Email for Notices: 

Contact Person in case of an Emergency: 

Name:................

Phone:

Fax:
GCA EMPLOYMENT AGREEMENT 2012 

© Global Crew Asia Pte Limited 

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SCHEDULE 1

1. Position; B787 [TRI/ PIC/RCA/FO] Pilot 

2. Employee’s Duties

(a) Providing pilot services to the Employers Client, the Employee shall pilot such domestic and 

international flights using the Aircraft as the Client may require.

(b) The Employee shall, in providing pilot services to the Client and in particular while on 

Operational Duty, be directed by the Client, with respect to operational matters, hours of work, 

rest periods and rostering.

(c) The Employee shall be rostered by the Client up to the maximum time allowed by the relevant

CAA. Scheduling will be based on the Client’s operational parameters as may be approved 

by the relevant CAA and the Client’s operation manuals 

(d) It is the Employee’s responsibility to ensure that he is contactable at all times, by having a 

mobile phone service, or other suitable messaging or communications devices. The Employee 

will provide the Employer and the Client with the Employee’s current contact phone numbers.

(e) Comply with the Client’s AOC holder ́s operational manual part A and B;

(f) Provide evidence of valid licence to the Client on request;

(g) Ensure that at all times the Employee is fit to fly;

(h) Abide by the laws of any state in which the employee is required to perform duties.

(i) Notwithstanding Clause 2. (b) and (c) above the Employee shall be responsible for monitoring 

the Employees own flight time limitations in accordance with the relevant CAA regulations. 

The Employee shall not carry out simulator duties or fly for hire or reward for any other party. 

The Employee shall provide flight time details (including all deadheading, positioning or 

passengering time) to the Client or the Employer on request.

(j) Undertake training as the Client or Employer may require, and in accordance with Schedule 3

to this Agreement. 

(k) Where the Employee is appointed to provide Training Captain, Check Captain, or Simulator 

Instructor services to the Client, the employee will carry out duties relating to such services as 

the Client may require.

3. Qualifications

The Employee must at all times during the term of this Agreement:

(a) Meet all current requirements of the relevant Civil Aviation Authority and the International Civil 

Aviation Organisation to fly the Aircraft as an international and domestic air transport 

Employee.

(b) Meet all licensing and medical examination requirements as specified by the relevant Civil 

Aviation Authority to fly the Aircraft, including being the holder of relevant aircraft type rating 

and appropriate licence, with experience and hours to the satisfaction of the Client and 

Employer.
GCA EMPLOYMENT AGREEMENT 2012 

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(c) Meet the standard required by the Client and Employer for all simulator checks including 

recurrency training and checks, as required by the Client. For the purposes of this Agreement:

(i) Written tests are considered failed if the Employee is unable to reach required 

score after 2 attempts.

(ii) Simulator training is considered failed if the Employee is unable to reach required 

standard after one extra session is given in addition to syllabus. This applies to 

initial Type Rating/Conversion Training. 

(iii) Fail on OPC/PC: if one failure is recorded an extra training session in simulator will 

be given before new check. The second OPC/PC will be performed by a different 

examiner if required by Employee. Failure of second OPC/PC check is considered 

final. 

(iv) Failure of Line Check: After failure of line check 2 sectors of line training will be 

given before new line check. The new line check will be given by a different 

examiner if required by the candidate. Failure of second line check is considered 

failure final. Additional training/checking beyond these rules can only be granted 

by Client’s DFO.

(d) Obtain and maintain all visas or other entry documentation, valid passport, visa, or 

employment permits required to perform the Employee’s duties. The reasonable cost of 

requisite visa/employment permit shall be reimbursed on production of receipts by the 

Employee. 

(e) Pass any medical examination or other test required by the Employer or the Client at any time 

during the Employee’s employment.

(f) Be familiar with and adhere to the rules and regulations that generally apply to the relevant 

position of the Crew Member in an airport area, and the standards, rules and regulations that 

generally apply to the Crew Member in relation to the Specified Services.
GCA EMPLOYMENT AGREEMENT 2012 

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SCHEDULE 2

Employer will provide or procure that the Employee is provided with the following, 

1. Insurance

Employer will provide suitable medical insurance and personal accident and illness insurance for 

the term of this Agreement. Cover notes evidencing this insurance will be provided to any 

Employee by Employer on request.

2. Uniforms and Identification

Employees will be provided with uniforms by the Employer, including any identification that it 

requires the Employee to have. The Employee shall take all actions necessary to adhere to the 

Client ́s policy with regard to uniforms and identification and regalia.

3. Travel:

The Client shall make ID travel benefits available to the Employee and his qualifying family 

members, including ID travel, according to the current policies. From the start of the Employee’s 

assignment, ID tickets will be granted to and from Base subject to availability on Norwegian 

Longhaul ASA and Norwegian Airshuttle flights.

4. Ground Transportation:

During training and Operational Duty, the Client shall provide ground transportation at layover 

stations. Any other transportation such as to and from Base shall be the responsibility of the 

Employee.

5. Accommodation at layover stations:

The Client shall provide and pay for;

(a) Single room accommodation at Base during a period from the Employee’s first assignment 

and for up to 30 days thereafter. For subsequent duty the Employee will be responsible for 

accommodation. 

(b) When traveling back to Europe for consecutive days off the Employee will be provided

hotel accommodation for one night when arriving to Europe and one night before leaving 

back to Base.

(c) Single room accommodation at layover stations other than Base;

(d) For the Employee on Extended Outstation Layover in Europe, single room accommodation 

the night before at Base operational duty starts, and the night such duty ends.

6. Medical Facilities

The Client shall use best efforts to assist in the provision of contact with medical facilities should 

the need arise.

7. Phone allowance

(i) TRI/PICs: EUR 100/month from the date line flying starts.

(ii) Relief Captains and FO’s: EUR 50/month from the date line flying starts.
GCA EMPLOYMENT AGREEMENT 2012 

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SCHEDULE 3

Training

(a) The Employee shall undertake all flight simulator training and checks, medical examinations, and 

training courses as and when required by the Client to maintain his licence and his own proficiency. 

(b) Where the Employee has undertaken training to B787 type at the Employer’s or the Client’s cost and 

this Agreement is terminated (excluding termination by the Employer without cause) prior to 

completion of the term the Employee shall immediately repay Employer the training costs in 

accordance with Clause (c) below. The Employee agrees to provide a satisfactory bank guarantee in 

favour of the Employer, or a cash bond, to the requisite value specified by the Employer in respect of 

such training costs prior to commencing duties.

(c) For termination occurring between; 

Pilots current on B737, B757, B767 

or B747 when starting the B787 type 

rating course

Pilots current on any other aircraft 

type or not being current on B737, 

B757, B767 or B747 when starting the 

B787 type rating course

0-12 months €30,000 €40,000

13-24 months €20,000 €27,000

25-36 months €10,000 €13,000

After 36 months Nil Nil
REGULATION (EC) No 1008/2008 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of 24 September 2008

on common rules for the operation of air services in the Community (Recast)

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE

EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 80(2) thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Economic and

Social Committee (1),

Having regard to the opinion of the Committee of the

Regions (2),

Acting in accordance with the procedure laid down in Article 251

of the Treaty (3),

Whereas:

(1) A number of substantial changes are to be made to Council

Regulations (EEC) No 2407/92 of 23 July 1992 on

licensing of air carriers (4), (EEC) No 2408/92 of 23 July

1992 on access of Community air carriers to intraCommunity air routes (5), and (EEC) No 2409/92 of 23 July

1992 on fares and rates for air services (6). In the interests

of clarity, these Regulations should be recast and

consolidated into one single Regulation.

(2) In order to ensure a more efficient and consistent

application of Community legislation for the internal

aviation market a series of adjustments to the current legal

framework is required.

(3) Recognising the potential link between the financial health

of an air carrier and safety, more stringent monitoring of

the financial situation of air carriers should be established.

(4) Given the growing importance of air carriers with

operational bases in several Member States and the need

to ensure the efficient supervision of these air carriers, the

same Member State should be responsible for the oversight

of the air operator certificate and of the operating licence.

(5) To ensure consistent monitoring of the compliance with

the requirements of the operating licences of all Community air carriers, licensing authorities should carry out

regular assessments of the air carriers' financial situation.

Therefore, the latter should provide sufficient information

on their financial situation, especially in the first two years

of their existence as these are particularly critical for the

survival of an air carrier on the market. In order to avoid a

distortion of competition arising from the different

application of the rules at national level, it is necessary to

reinforce the financial oversight of all Community air

carriers by Member States.

(6) To reduce risks to passengers, Community air carriers

failing to fulfil the requirements for maintaining a valid

operating licence should not be allowed to continue

operations. In such cases, the competent licensing authority

should revoke or suspend the operating licence.

(7) According to Regulation (EC) No 785/2004 of the

European Parliament and of the Council of 21 April

2004 on insurance requirements for air carriers and aircraft

operators (7) an air carrier should be insured to cover

liability in case of accidents with respect to passengers,

cargo and third parties. Obligations should also be placed

upon air carriers for insurance to cover liability in case of

accidents with respect to mail.

(8) In order to avoid excessive recourse to lease agreements of

aircraft registered in third countries, especially wet lease,

these possibilities should only be allowed in exceptional

circumstances, such as a lack of adequate aircraft on the

Community market, and they should be strictly limited in

time and fulfil safety standards equivalent to the safety rules

of Community and national legislation.

(9) With respect to employees of a Community air carrier

operating air services from an operational base outside the

territory of the Member State where that Community air

31.10.2008 EN Official Journal of the European Union L 293/3

(

1) OJ C 175, 27.7.2007, p. 85.

(

2) OJ C 305, 15.12.2007, p. 11.

(

3) Opinion of European Parliament of 11 July 2007 (OJ C 175 E,

10.7.2008, p. 371), Council Common Position of 18 April 2008 (OJ

C 129 E, 27.5.2008, p. 1) and Position of the European Parliament

of 9 July 2008 (not yet published in the Official Journal).

(

4) OJ L 240, 24.8.1992, p. 1.

(

5) OJ L 240, 24.8.1992, p. 8.

(

6) OJ L 240, 24.8.1992, p. 15. (7) OJ L 138, 30.4.2004, p. 1.
carrier has its principal place of business, Member States

should ensure the proper application of Community and

national social legislation.

(10) In order to complete the internal aviation market, still

existing restrictions applied between Member States, such

as restrictions on the code sharing on routes to third

countries or on the price setting on routes to third

countries with an intermediate stop in another Member

State (sixth freedom flights) should be lifted.

(11) To take into account the special characteristics and

constraints of the outermost regions, in particular their

remoteness, insularity and small size, and the need to

properly link them with the central regions of the

Community, special arrangements may be justified regarding the rules on the period of validity of the contracts for

public service obligations covering routes to such regions.

(12) The conditions under which public service obligations may

be imposed should be defined clearly in an unambiguous

way, while the associated tender procedures should allow a

sufficient number of competitors to take part in the tenders.

The Commission should be able to obtain as much

information as necessary to be able to assess the economic

justifications for public service obligations in individual

cases.

(13) The rules in force with regard to traffic distribution between

airports serving the same city or conurbation should be

clarified and simplified.

(14) It is appropriate to ensure that Member States have the

possibility to react to sudden problems resulting from

unforeseeable and unavoidable circumstances, which make

it technically or practically very difficult to carry out air

services.

(15) Customers should have access to all air fares and air rates

irrespective of their place of residence within the Community or their nationality and irrespective of the place of

establishment of the travel agents within the Community.

(16) Customers should be able to compare effectively the prices

for air services of different airlines. Therefore the final price

to be paid by the customer for air services originating in the

Community should at all times be indicated, inclusive of all

taxes, charges and fees. Community air carriers are also

encouraged to indicate the final price for their air services

from third countries to the Community.

(17) The measures necessary for the implementation of this

Regulation should be adopted in accordance with Council

Decision 1999/468/EC of 28 June 1999 laying down the

procedures for the exercise of implementing powers

conferred on the Commission (1).

(18) Since the objective of this Regulation, namely more

homogeneous application of Community legislation with

regard to the internal aviation market cannot be sufficiently

achieved by the Member States because of the international

character of air transport, and can therefore be better

achieved at Community level, the Community may adopt

measures, in accordance with the principle of subsidiarity

as set out in Article 5 of the Treaty. In accordance with the

principle of proportionality, as set out in that Article, this

Regulation does not go beyond what is necessary in order

to achieve that objective.

(19) The Ministerial Statement on Gibraltar Airport, agreed in

Cordoba on 18 September 2006, during the first

ministerial meeting of the Forum of Dialogue on Gibraltar,

will replace the Joint Declaration on the airport made in

London on 2 December 1987, and full compliance with it

will be deemed to constitute compliance with the 1987

declaration.

(20) It is therefore necessary to repeal Regulations (EEC)

No 2407/92, (EEC) No 2408/92 and (EEC) No 2409/92,

HAVE ADOPTED THIS REGULATION:

CHAPTER I

GENERAL PROVISIONS

Article 1

Subject matter

1. This Regulation regulates the licensing of Community air

carriers, the right of Community air carriers to operate intraCommunity air services and the pricing of intra-Community air

services.

2. The application of Chapter III of this Regulation to the

airport of Gibraltar is understood to be without prejudice to the

respective legal positions of the Kingdom of Spain and the

United Kingdom with regard to the dispute over sovereignty over

the territory in which the airport is situated.

Article 2

Definitions

For the purposes of this Regulation:

1. ‘operating licence’ means an authorisation granted by the

competent licensing authority to an undertaking, permitting it to provide air services as stated in the operating

licence;

L 293/4 EN Official Journal of the European Union 31.10.2008

(

1) OJ L 184, 17.7.1999, p. 23.
2. ‘competent licensing authority’ means an authority of a

Member State entitled to grant, refuse, revoke or suspend an

operating licence in accordance with Chapter II;

3. ‘undertaking’ means any natural or legal person, whether

profit-making or not, or any official body whether having

its own legal personality or not;

4. ‘air service’ means a flight or a series of flights carrying

passengers, cargo and/or mail for remuneration and/or hire;

5. ‘flight’ means a departure from a specified airport towards a

specified destination airport;

6. ‘local flight’ means a flight not involving carriage of

passengers, mail and/or cargo between different airports or

other authorised landing points;

7. ‘airport’ means any area in a Member State especially

adapted for air services;

8. ‘air operator certificate (AOC)’ means a certificate delivered

to an undertaking confirming that the operator has the

professional ability and organisation to ensure the safety of

operations specified in the certificate, as provided in the

relevant provisions of Community or national law, as

applicable;

9. ‘effective control’ means a relationship constituted by

rights, contracts or any other means which, either

separately or jointly and having regard to the considerations

of fact or law involved, confer the possibility of directly or

indirectly exercising a decisive influence on an undertaking,

in particular by:

(a) the right to use all or part of the assets of an

undertaking;

(b) rights or contracts which confer a decisive influence

on the composition, voting or decisions of the bodies

of an undertaking or otherwise confer a decisive

influence on the running of the business of the

undertaking;

10. ‘air carrier’ means an undertaking with a valid operating

licence or equivalent;

11. ‘Community air carrier’ means an air carrier with a valid

operating licence granted by a competent licensing

authority in accordance with Chapter II;

12. ‘business plan’ means a detailed description of the air

carrier's intended commercial activities for the period in

question, in particular in relation to the expected market

development and the investments to be carried out,

including the financial and economic implications of these

activities;

13. ‘intra-Community air service’ means an air service operated

within the Community;

14. ‘traffic right’ means the right to operate an air service

between two Community airports;

15. ‘seat-only sales’ means the sale of seats, without any other

service bundled, such as accommodation, directly to the

public by the air carrier or its authorised agent or a

charterer;

16. ‘scheduled air service’ means a series of flights possessing all

the following characteristics:

(a) on each flight seats and/or capacity to transport cargo

and/or mail are available for individual purchase by

the public (either directly from the air carrier or from

its authorised agents);

(b) it is operated so as to serve traffic between the same

two or more airports, either:

— according to a published timetable, or

— with flights so regular or frequent that they

constitute a recognisably systematic series;

17. ‘capacity’ means the number of seats or the payload offered

to the general public on a scheduled air service over a given

period;

18. ‘air fares’ means the prices expressed in euro or in local

currency to be paid to air carriers or their agents or other

ticket sellers for the carriage of passengers on air services

and any conditions under which those prices apply,

including remuneration and conditions offered to agency

and other auxiliary services;

19. ‘air rates’ means the prices expressed in euro or in local

currency to be paid for the carriage of cargo and the

conditions under which those prices apply, including

remuneration and conditions offered to agency and other

auxiliary services;

20. ‘Member State(s) concerned’ means the Member State(s)

between or within which an air service is operated;

31.10.2008 EN Official Journal of the European Union L 293/5
21. ‘Member State(s) involved’ means the Member State(s)

concerned and the Member State(s) where the air carrier(s)

operating the air service is (are) licensed;

22. ‘conurbation’ means an urban area comprising a number of

cities or towns which, through population growth and

expansion, have physically merged to form one continuous

built up area;

23. ‘management account’ means a detailed statement of

income and costs of an air carrier for the period in

question including a breakdown between air-transportrelated and other activities as well as between pecuniary and

non-pecuniary elements;

24. ‘dry lease agreement’ means an agreement between undertakings pursuant to which the aircraft is operated under the

AOC of the lessee;

25. ‘wet lease agreement’ means an agreement between air

carriers pursuant to which the aircraft is operated under the

AOC of the lessor;

26. ‘principal place of business’ means the head office or

registered office of a Community air carrier in the Member

State within which the principal financial functions and

operational control, including continued airworthiness

management, of the Community air carrier are exercised.

CHAPTER II

OPERATING LICENCE

Article 3

Operating licence

1. No undertaking established in the Community shall be

permitted to carry by air passengers, mail and/or cargo for

remuneration and/or hire unless it has been granted the

appropriate operating licence.

An undertaking meeting the requirements of this Chapter shall

be entitled to receive an operating licence.

2. The competent licensing authority shall not grant operating

licences or maintain them in force where any of the requirements

of this Chapter are not complied with.

3. Without prejudice to any other applicable provisions of

Community, national, or international law, the following

categories of air services shall not be subject to the requirement

to hold a valid operating licence:

(a) air services performed by non-power-driven aircraft and/or

ultralight power-driven aircraft; and

(b) local flights.

Article 4

Conditions for granting an operating licence

An undertaking shall be granted an operating licence by the

competent licensing authority of a Member State provided that:

(a) its principal place of business is located in that Member

State;

(b) it holds a valid AOC issued by a national authority of the

same Member State whose competent licensing authority is

responsible for granting, refusing, revoking or suspending

the operating licence of the Community air carrier;

(c) it has one or more aircraft at its disposal through

ownership or a dry lease agreement;

(d) its main occupation is to operate air services in isolation or

combined with any other commercial operation of aircraft

or the repair and maintenance of aircraft;

(e) its company structure allows the competent licensing

authority to implement the provisions of this Chapter;

(f) Member States and/or nationals of Member States own

more than 50 % of the undertaking and effectively control

it, whether directly or indirectly through one or more

intermediate undertakings, except as provided for in an

agreement with a third country to which the Community is

a party;

(g) it meets the financial conditions specified in Article 5;

(h) it complies with the insurance requirements specified in

Article 11 and in Regulation (EC) No 785/2004; and

(i) it complies with the provisions on good repute as specified

in Article 7.

Article 5

Financial conditions for granting an operating licence

1. The competent licensing authority shall closely assess

whether an undertaking applying for the first time for an

operating licence can demonstrate that:

(a) it can meet at any time its actual and potential obligations

established under realistic assumptions, for a period of 24

months from the start of operations; and

L 293/6 EN Official Journal of the European Union 31.10.2008
(b) it can meet its fixed and operational costs incurred by

operations according to its business plan and established

under realistic assumptions, for a period of three months

from the start of operations, without taking into account

any income from its operations.

2. For the purposes of the assessment referred to in

paragraph 1, each applicant shall submit a business plan for, at

least, the first three years of operation. The business plan shall

also detail the applicant's financial links with any other

commercial activities in which the applicant is engaged either

directly or through related undertakings. The applicant shall also

provide all relevant information, in particular the data referred to

in point 1 of Annex I.

3. Paragraphs 1 and 2 shall not apply to an undertaking

applying for an operating licence intended to cover operations

with aircraft of less than 10 tonnes maximum take-off mass

(MTOM) and/or less than 20 seats. Such undertakings shall

demonstrate that their net capital is at least EUR 100 000 or

provide, when required by the competent licensing authority, all

relevant information for the purposes of the assessment referred

to in paragraph 1, in particular the data referred to in point 1 of

Annex I.

The competent licensing authority may nevertheless apply

paragraphs 1 and 2 to an undertaking applying for an operating

licence under the provisions of the previous subparagraph that

intends to operate scheduled air services or whose turnover

exceeds EUR 3 million per year.

Article 6

Air operator certificate

1. The granting and validity of an operating licence shall at any

time be dependent upon the possession of a valid AOC

specifying the activities covered by the operating licence.

2. Any modification in the AOC of a Community air carrier

shall be reflected, where appropriate, in its operating licence.

Article 7

Proof of good repute

1. Where, for the purpose of issuing an operating licence,

proof is required that the persons who will continuously and

effectively manage the operations of the undertaking are of good

repute or that they have not been declared bankrupt, the

competent licensing authority shall accept as sufficient evidence

in respect of nationals of Member States the production of

documents issued by the competent authorities in the Member

State of origin or the Member State where the person has his/her

permanent residence showing that those requirements are met.

2. Where the Member State of origin or the Member State

where the person has his/her permanent residence does not issue

the documents referred to in paragraph 1, such documents shall

be replaced by a declaration on oath or — in Member States

where there is no provision for declaration on oath — by a

solemn declaration made by the person concerned before a

competent judicial or administrative authority or, where

appropriate, a notary or qualified professional body of the

Member State of origin or the Member State where the person

has his/her permanent residence. Such authority, notary or

qualified professional body shall issue a certificate attesting the

authenticity of the declaration on oath or solemn declaration.

3. The competent licensing authority may require that the

documents and certificates referred to in paragraphs 1 and 2 be

presented no more than three months after their date of issue.

Article 8

Validity of an operating licence

1. An operating licence shall be valid as long as the

Community air carrier complies with the requirements of this

Chapter.

A Community air carrier shall at all times be able on request to

demonstrate to the competent licensing authority that it meets

all the requirements of this Chapter.

2. The competent licensing authority shall closely monitor

compliance with the requirements of this Chapter. It shall in any

case review compliance with these requirements in the following

cases:

(a) two years after a new operating licence has been granted;

(b) when a potential problem has been suspected; or

(c) at the request of the Commission.

In case the competent licensing authority suspects that financial

problems of a Community air carrier might affect the safety of its

operations, it shall immediately inform the authority competent

for the AOC.

3. The operating licence shall be resubmitted for approval

when a Community air carrier:

(a) has not started operations within six months of the

granting of an operating licence;

(b) has ceased its operations for more than six months; or

31.10.2008 EN Official Journal of the European Union L 293/7
(c) which has been licensed on the basis of the first

subparagraph of Article 5(3) intends to engage in

operations with aircraft above the size threshold specified

in Article 5(3) or no longer complies with the financial

conditions set out therein.

4. A Community air carrier shall provide to the competent

licensing authority its audited accounts no later than six months

following the last day of the respective financial year, unless

otherwise provided for in national law. During the first two years

of operation of a Community air carrier, the data as referred to in

point 3 of Annex I shall be made available to the competent

licensing authority upon request.

The competent licensing authority may at any time assess the

financial performance of a Community air carrier to which it has

granted an operating licence by requesting the relevant

information. As part of such an assessment, the Community

air carrier in question shall update the data referred to in point 3

of Annex I and provide it to the competent licensing authority

upon request.

5. A Community air carrier shall notify the competent

licensing authority:

(a) in advance of any plans for the operation of a new air

service to a continent or a world region not previously

served, or any other substantial change in the scale of its

activities, including, but not limited to, changes in the type

or number of aircraft used;

(b) in advance of any intended mergers or acquisitions; and

(c) within 14 days of any change in the ownership of any single

shareholding which represents 10 % or more of the total

shareholding of the Community air carrier or of its parent

or ultimate holding company.

6. If the competent licensing authority deems the changes

notified under paragraph 5 to have a significant bearing on the

finances of the Community air carrier, it shall require the

submission of a revised business plan incorporating the changes

in question and covering, at least, a period of 12 months from its

date of implementation as well as the data referred to in point 2

of Annex I, in addition to the information to be provided under

paragraph 4.

The competent licensing authority shall take a decision on the

revised business plan as to whether the Community air carrier

can meet its existing and potential obligations during that period

of 12 months. Such a decision shall be taken not later than three

months after all the necessary information has been submitted to

it.

7. In relation to Community air carriers licensed by it the

competent licensing authority shall decide whether the operating

licence shall be resubmitted for approval in case of change in one

or more elements affecting the legal situation of a Community

air carrier and, in particular, in the case of a merger or takeover.

8. Paragraphs 4, 5 and 6 shall not apply to Community air

carriers exclusively engaged in operations with aircraft of less

than 10 tonnes MTOM and/or less than 20 seats. Such

Community air carriers shall at all times be able to demonstrate

that their net capital is at least EUR 100 000 or to provide when

required by the competent licensing authority the information

relevant for the purposes of the assessment referred to in

Article 9(2).

The competent licensing authority may nevertheless apply

paragraphs 4, 5 and 6 to Community air carriers licensed by it

that operate scheduled air services or whose turnover exceeds

EUR 3 million per year.

Article 9

Suspension and revocation of an operating licence

1. The competent licensing authority may at any time assess

the financial performance of a Community air carrier which it

has licensed. Based upon its assessment, the authority shall

suspend or revoke the operating licence if it is no longer satisfied

that this Community air carrier can meet its actual and potential

obligations for a 12-month period. Nevertheless, the competent

licensing authority may grant a temporary licence, not exceeding

12 months pending financial reorganisation of a Community air

carrier provided that safety is not at risk, that this temporary

licence reflects, when appropriate, any changes to the AOC, and

that there is a realistic prospect of a satisfactory financial

reconstruction within that time period.

2. Whenever there are clear indications that financial problems

exist or when insolvency or similar proceedings are opened

against a Community air carrier licensed by it the competent

licensing authority shall without delay make an in-depth

assessment of the financial situation and on the basis of its

findings review the status of the operating licence in compliance

with this Article within a time period of three months.

L 293/8 EN Official Journal of the European Union 31.10.2008
The competent licensing authority shall inform the Commission

of its decisions, relating to the status of the operating licence.

3. When the audited accounts referred to in Article 8(4) have

not been communicated within the deadline indicated in that

Article, the competent licensing authority shall, without undue

delay, request the Community air carrier to communicate these

audited accounts.

If the audited accounts are not communicated within one month,

the operating licence may be revoked or suspended.

4. The competent licensing authority shall suspend or revoke

the operating licence if the Community air carrier knowingly or

recklessly furnishes the competent licensing authority with false

information on an important point.

5. In case a Community air carrier's AOC is suspended or

withdrawn, the competent licensing authority shall immediately

suspend or revoke that air carrier's operating licence.

6. The competent licensing authority may suspend or revoke

the operating licence of a Community air carrier if such a carrier

no longer satisfies the requirements relating to good repute set

out in Article 7.

Article 10

Decisions on operating licences

1. The competent licensing authority shall take a decision on

an application as soon as possible, and not later than three

months after all the necessary information has been submitted,

taking into account all available evidence. The decision shall be

communicated to the applicant. A refusal shall indicate the

reasons therefor.

2. Procedures for granting, suspending and revoking operating

licences shall be made public by the competent licensing

authorities, which shall inform the Commission thereof.

3. A list of decisions of the competent licensing authorities to

grant, suspend or revoke operating licences shall be published

annually in the Official Journal of the European Union.

Article 11

Insurance requirements

Notwithstanding Regulation (EC) No 785/2004, an air carrier

shall be insured to cover liability in case of accidents with respect

to mail.

Article 12

Registration

1. Without prejudice to Article 13(3), aircraft used by a

Community air carrier shall be registered, at the option of the

Member State whose competent authority issues the operating

licence, in its national register or within the Community.

2. In accordance with paragraph 1, the competent authority

shall, subject to applicable laws and regulations, accept on its

national register, without any discriminatory fee and without

delay, aircraft owned by nationals of other Member States and

transfers from aircraft registers of other Member States. No fee

shall be applied to transfers of aircraft in addition to the normal

registration fee.

Article 13

Leasing

1. Without prejudice to Article 4(c), a Community air carrier

may have one or more aircraft at its disposal through dry or wet

lease agreement. Community air carriers may freely operate wetleased aircraft registered within the Community except where

this would lead to endangering safety. The Commission shall

ensure that the implementation of such a provision is reasonable

and proportionate and based on safety considerations.

2. A dry lease agreement to which a Community air carrier is a

party or a wet lease agreement under which the Community air

carrier is the lessee of the wet-leased aircraft shall be subject to

prior approval in accordance with applicable Community or

national law on aviation safety.

3. A Community air carrier wet leasing aircraft registered in a

third country from another undertaking shall obtain prior

approval for the operation from the competent licensing

authority. The competent authority may grant an approval if:

(a) the Community air carrier demonstrates to the satisfaction

of the competent authority that all safety standards

equivalent to those imposed by Community or national

law are met; and

(b) one of the following conditions is fulfilled:

(i) the Community air carrier justifies such leasing on the

basis of exceptional needs, in which case an approval

may be granted for a period of up to seven months

that may be renewed once for a further period of up

to seven months;

31.10.2008 EN Official Journal of the European Union L 293/9
(ii) the Community air carrier demonstrates that the

leasing is necessary to satisfy seasonal capacity needs,

which cannot reasonably be satisfied through leasing

aircraft registered within the Community, in which

case the approval may be renewed; or

(iii) the Community air carrier demonstrates that the

leasing is necessary to overcome operational difficulties and it is not possible or reasonable to lease aircraft

registered within the Community, in which case the

approval shall be of limited duration strictly necessary

for overcoming the difficulties.

4. The competent authority may attach conditions to the

approval. Such conditions shall form part of the wet lease

agreement.

The competent authority may refuse to grant an approval if there

is no reciprocity as regards wet leasing between the Member

State concerned or the Community and the third country where

the wet-leased aircraft is registered.

The competent authority shall inform the Member States

concerned about an approval it has granted for wet leasing

aircraft registered in a third country.

Article 14

Right to be heard

The competent licensing authority shall ensure that, when

adopting a decision to suspend or revoke the operating licence of

a Community air carrier, the Community air carrier concerned is

given the opportunity of being heard, taking into account the

need, in some cases, for an urgency procedure.

CHAPTER III

ACCESS TO ROUTES

Article 15

Provision of intra-Community air services

1. Community air carriers shall be entitled to operate intraCommunity air services.

2. Member States shall not subject the operation of intraCommunity air services by a Community air carrier to any

permit or authorisation. Member States shall not require

Community air carriers to provide any documents or information which they have already supplied to the competent licensing

authority, provided that the relevant information may be

obtained from the competent licensing authority in due time.

3. If the Commission, on the basis of information obtained

under Article 26(2), finds that the operating licence granted to a

Community air carrier is not in compliance with the requirements of this Regulation it shall forward its findings to the

competent licensing authority which shall send its comments to

the Commission within 15 working days.

If the Commission, after examining the comments of the

competent licensing authority, maintains that the operating

licence is not compliant, or no comments have been received

from the competent licensing authority it shall, in accordance

with the procedure referred to in Article 25(2), take a decision to

request the competent licensing authority to take the appropriate

corrective measures or to suspend or revoke the operating

licence.

The decision shall set a date by which the corrective measures or

actions by the competent licensing authority shall be implemented. If the corrective measures or actions have not been

implemented by that date the Community air carrier shall not be

entitled to exercise its rights under paragraph 1.

The Community air carrier may resume exercising its rights

under paragraph 1 upon notification to the Commission by the

competent licensing authority that the corrective measures have

been implemented and that the competent licensing authority

has verified the implementation.

4. When operating intra-Community air services, a Community air carrier shall be permitted to combine air services and to

enter into code share arrangements, without prejudice to the

Community competition rules applicable to undertakings.

Any restrictions on the freedom of Community air carriers to

operate intra-Community air services arising from bilateral

agreements between Member States are hereby superseded.

5. Notwithstanding the provisions of bilateral agreements

between Member States, and subject to the Community

competition rules applicable to undertakings, Community air

carriers shall be permitted by the Member State(s) concerned to

combine air services and to enter into code share arrangements

with any air carrier on air services to, from or via any airport in

their territory from or to any point(s) in third countries.

A Member State may, in the framework of the bilateral air service

agreement with the third country concerned, impose restrictions

on code share arrangements between Community air carriers

and air carriers of a third country, in particular if the third

country concerned does not allow similar commercial opportunities to Community air carriers operating from the Member

L 293/10 EN Official Journal of the European Union 31.10.2008
State concerned. In doing so, Member States shall ensure that

restrictions imposed under such agreements do not restrict

competition and are non-discriminatory between Community air

carriers and that they are not more restrictive than necessary.

Article 16

General principles for public service obligations

1. A Member State, following consultations with the other

Member States concerned and after having informed the

Commission, the airports concerned and air carriers operating

on the route, may impose a public service obligation in respect of

scheduled air services between an airport in the Community and

an airport serving a peripheral or development region in its

territory or on a thin route to any airport on its territory any

such route being considered vital for the economic and social

development of the region which the airport serves. That

obligation shall be imposed only to the extent necessary to

ensure on that route the minimum provision of scheduled air

services satisfying fixed standards of continuity, regularity,

pricing or minimum capacity, which air carriers would not

assume if they were solely considering their commercial interest.

The fixed standards imposed on the route subject to that public

service obligation shall be set in a transparent and nondiscriminatory way.

2. In instances where other modes of transport cannot ensure

an uninterrupted service with at least two daily frequencies, the

Member States concerned may include in the public service

obligation the requirement that any Community air carrier

intending to operate the route gives a guarantee that it will

operate the route for a certain period, to be specified, in

accordance with the other terms of the public service obligation.

3. The necessity and the adequacy of an envisaged public

service obligation shall be assessed by the Member State(s) having

regard to:

(a) the proportionality between the envisaged obligation and

the economic development needs of the region concerned;

(b) the possibility of having recourse to other modes of

transport and the ability of such modes to meet the

transport needs under consideration, in particular when

existing rail services serve the envisaged route with a travel

time of less than three hours and with sufficient

frequencies, connections and suitable timings;

(c) the air fares and conditions which can be quoted to users;

(d) the combined effect of all air carriers operating or intending

to operate on the route.

4. When a Member State wishes to impose a public service

obligation, it shall communicate the text of the envisaged

imposition of the public service obligation to the Commission,

to the other Member States concerned, to the airports concerned

and to the air carriers operating the route in question.

The Commission shall publish an information notice in the

Official Journal of the European Union:

(a) identifying the two airports connected by the route

concerned and possible intermediate stop-over point(s);

(b) mentioning the date of entry into force of the public service

obligation; and

(c) indicating the complete address where the text and any

relevant information and/or documentation related to the

public service obligation shall be made available without

delay and free of charge by the Member State concerned.

5. Notwithstanding the provisions of paragraph 4, with respect

to routes where the number of passengers expected to use the air

service is less than 10 000 per annum, the information notice on

a public service obligation shall be published either in the Official

Journal of the European Union or in the national official journal of

the Member State concerned.

6. The date of entry into force of a public service obligation

shall not be earlier than the date of publication of the

information notice referred to in the second subparagraph of

paragraph 4.

7. When a public service obligation has been imposed in

accordance with paragraphs 1 and 2 the Community air carrier

shall be able to offer seat-only sales provided that the air service

in question meets all the requirements of the public service

obligation. Consequently that air service shall be considered as a

scheduled air service.

8. When a public service obligation has been imposed in

accordance with paragraphs 1 and 2, any other Community air

carrier shall at any time be allowed to commence scheduled air

services meeting all the requirements of the public service

obligation, including the period of operation that may be

required in accordance with paragraph 2.

9. Notwithstanding paragraph 8, if no Community air carrier

has commenced or can demonstrate that it is about to

commence sustainable scheduled air services on a route in

accordance with the public service obligation which has been

31.10.2008 EN Official Journal of the European Union L 293/11
imposed on that route, the Member State concerned may limit

access to the scheduled air services on that route to only one

Community air carrier for a period of up to four years, after

which the situation shall be reviewed.

This period may be up to five years if the public service

obligation is imposed on a route to an airport serving an

outermost region, referred to in Article 299(2) of the Treaty.

10. The right to operate the services referred to in paragraph 9

shall be offered by public tender in accordance with Article 17,

either singly or, in cases where justified for reasons of operational

efficiency, for a group of such routes to any Community air

carrier entitled to operate such air services. For reasons of

administrative efficiency, a Member State may issue a single

invitation to tender covering different routes.

11. A public service obligation shall be deemed to have expired

if no scheduled air service has been operated during a period of

12 months on the route subject to such obligation.

12. In case of sudden interruption of service by the

Community air carrier selected in accordance with Article 17,

the Member State concerned may, in case of emergency, select by

mutual agreement a different Community air carrier to operate

the public service obligation for a period up to seven months,

not renewable, under the following conditions:

(a) any compensation paid by the Member State shall be made

in compliance with Article 17(8);

(b) the selection shall be made among Community air carriers

in compliance with the principles of transparency and nondiscrimination;

(c) a new call for tender shall be launched.

The Commission and the Member State(s) concerned shall be

informed without delay of the emergency procedure and of its

reasons. At the request of a Member State, or on its own

initiative, the Commission may, in accordance with the

procedure referred to in Article 25(2) suspend the procedure if

it considers after its assessment that it does not meet the

requirements of this paragraph or is otherwise contrary to

Community law.

Article 17

Public tender procedure for public service obligation

1. The public tender required in Article 16(10) shall be

conducted according to the procedure set out in paragraphs 2 to

10 of this Article.

2. The Member State concerned shall communicate the entire

text of the invitation to tender to the Commission except where,

in accordance with Article 16(5), it has made the public service

obligation known through the publication of a notice in its

national official journal. In such case the tender shall also be

published in the national official journal.

3. The invitation to tender and the subsequent contract shall

cover, inter alia, the following points:

(a) the standards required by the public service obligation;

(b) rules concerning amendment and termination of the

contract, in particular to take account of unforeseeable

changes;

(c) the period of validity of the contract;

(d) penalties in the event of failure to comply with the contract;

(e) objective and transparent parameters on the basis of which

compensation, if any, for the discharging of the public

service obligations shall be calculated.

4. The Commission shall make the invitation to tender known

through an information notice published in the Official Journal of

the European Union. The deadline for submission of tenders shall

not be earlier than two months after the day of publication of

such an information notice. In case the tender concerns a route

to which the access had already been limited to one carrier in

accordance with Article 16(9), the invitation to tender will be

published at least six months before the start of the new

concession in order to assess the continued necessity of the

restricted access.

5. The information notice shall provide the following information:

(a) Member State(s) concerned;

(b) air route concerned;

(c) period of validity of the contract;

(d) complete address where the text of the invitation to tender

and any relevant information and/or documentation related

to the public tender and the public service obligation shall

be made available by the Member State concerned;

(e) deadline for submission of tenders.

6. The Member State(s) concerned shall communicate without

delay and free of charge any relevant information and documents

requested by a party interested in the public tender.

L 293/12 EN Official Journal of the European Union 31.10.2008
7. The selection among the submissions shall be made as soon

as possible taking into consideration the adequacy of the service,

including the prices and conditions which can be quoted to

users, and the cost of the compensation required from the

Member State(s) concerned, if any.

8. The Member State concerned may compensate an air carrier,

which has been selected under paragraph 7, for adhering to the

standards required by a public service obligation imposed under

Article 16. Such compensation may not exceed the amount

required to cover the net costs incurred in discharging each

public service obligation, taking account of revenue relating

thereto kept by the air carrier and a reasonable profit.

9. The Commission shall be informed in writing and without

delay of the results of the public tender and of the selection by

the Member State including the following information:

(a) numbers, names and corporate information of tenderers;

(b) operational elements contained in the offers;

(c) compensation requested in the offers;

(d) name of the selected tenderer.

10. At a request of a Member State or on its own initiative, the

Commission may request Member States to communicate, within

one month, all relevant documents relating to the selection of an

air carrier for the operation of a public service obligation. In case

the requested documents are not communicated within the

deadline, the Commission may decide to suspend the invitation

to tender in accordance with the procedure referred to in

Article 25(2).

Article 18

Examination of public service obligations

1. Member States shall take all necessary measures to ensure

that any decision taken under Articles 16 and 17 can be

reviewed effectively and, in particular, as soon as possible on the

grounds that such decisions have infringed Community law or

national rules implementing Community law.

In particular, at a request of a Member State or on its own

initiative, the Commission may request Member States to

communicate, within two months:

(a) a document justifying the need for the public service

obligation and its compliance with the criteria mentioned

in Article 16;

(b) an analysis of the economy of the region;

(c) an analysis of the proportionality between the envisaged

obligations and the economic development objectives;

(d) an analysis of the existing air services, if any, and of the

other modes of transport available which could be

considered a substitute for the envisaged imposition.

2. At the request of a Member State which considers that the

development of a route is being unduly restricted by the terms of

Articles 16 and 17, or on its own initiative, the Commission

shall carry out an investigation and, within six months of receipt

of the request and in accordance with the procedure referred to

in Article 25(2), shall take a decision on the basis of all relevant

factors on whether Articles 16 and 17 shall continue to apply in

respect of the route concerned.

Article 19

Traffic distribution between airports and exercise of traffic

rights

1. The exercise of traffic rights shall be subject to published

Community, national, regional and local operational rules

relating to safety, security, the protection of the environment

and the allocation of slots.

2. A Member State, after consultation with interested parties

including the air carriers and airports concerned, may regulate,

without discrimination among destinations inside the Community or on grounds of nationality or identity of air carriers, the

distribution of air traffic between airports satisfying the

following conditions:

(a) the airports serve the same city or conurbation;

(b) the airports are served by adequate transport infrastructure

providing, to the extent possible, a direct connection

making it possible to arrive at the airport within 90

minutes including, where necessary, on a cross-border

basis;

(c) the airports are linked to one another and to the city or

conurbation they serve by frequent, reliable and efficient

public transport services; and

(d) the airports offer necessary services to air carriers, and do

not unduly prejudice their commercial opportunities.

Any decision to regulate the distribution of air traffic between

the airports concerned shall respect the principles of proportionality and transparency, and shall be based on objective

criteria.

31.10.2008 EN Official Journal of the European Union L 293/13
3. A Member State concerned shall inform the Commission of

its intention to regulate the distribution of air traffic or to change

an existing traffic distribution rule.

The Commission shall examine the application of paragraphs 1

and 2 of this Article and, within six months of receipt of the

information from the Member State, and in accordance with the

procedure referred to in Article 25(2), shall decide whether the

Member State may apply the measures.

The Commission shall publish its decision in the Official Journal

of the European Union and the measures shall not be applied

before the publication of the Commission's approval.

4. With respect to traffic distribution rules existing at the time

of the entry into force of this Regulation, the Commission shall

at the request of a Member State and may on its own initiative

examine the application of paragraphs 1 and 2 and, in

accordance with the procedure referred to in Article 25(2), shall

decide whether the Member State may continue to apply the

measure.

5. The Commission shall publish its decisions made under this

Article in the Official Journal of the European Union.

Article 20

Environmental measures

1. When serious environmental problems exist, the Member

State responsible may limit or refuse the exercise of traffic rights,

in particular when other modes of transport provide appropriate

levels of service. The measure shall be non-discriminatory, shall

not distort competition between air carriers, shall not be more

restrictive than necessary to relieve the problems, and shall have

a limited period of validity, not exceeding three years, after which

it shall be reviewed.

2. When a Member State considers that action under

paragraph 1 is necessary it shall, at least three months before

the entry into force of the action, inform the other Member

States and the Commission, providing adequate justification for

the action. The action may be implemented unless within one

month of receipt of the information a Member State concerned

contests the action or the Commission, in accordance with

paragraph 3, takes it up for further examination.

3. At the request of another Member State or on its own

initiative, the Commission may, in accordance with the

procedure referred to in Article 25(2), suspend the measures if

they do not meet the requirements of paragraph 1 or are

otherwise contrary to Community law.

Article 21

Emergency measures

1. A Member State may refuse, limit or impose conditions on

the exercise of traffic rights to deal with sudden problems of

short duration resulting from unforeseeable and unavoidable

circumstances. Such action shall respect the principles of

proportionality and transparency and shall be based on objective

and non-discriminatory criteria.

The Commission and the other Member States shall be informed

without delay of such action with its adequate justification. If the

problems necessitating such action continue to exist for more

than 14 days, the Member State shall inform the Commission

and the other Member States accordingly and may, with the

agreement of the Commission, prolong the action for further

periods of up to 14 days.

2. At the request of the Member State(s) involved or on its own

initiative, the Commission may suspend this action if it does not

meet the requirements of paragraph 1 or is otherwise contrary to

Community law.

CHAPTER IV

PROVISIONS ON PRICING

Article 22

Pricing freedom

1. Without prejudice to Article 16(1), Community air carriers

and, on the basis of reciprocity, air carriers of third countries

shall freely set air fares and air rates for intra-Community air

services.

2. Notwithstanding the provisions of bilateral agreements

between Member States, Member States may not discriminate

on grounds of nationality or identity of air carriers in allowing

Community air carriers to set fares and rates for air services

between their territory and a third country. Any remaining

restrictions on pricing, including with respect to routes to third

countries, arising from bilateral agreements between Member

States are hereby superseded.

Article 23

Information and non-discrimination

1. Air fares and air rates available to the general public shall

include the applicable conditions when offered or published in

any form, including on the Internet, for air services from an

airport located in the territory of a Member State to which the

Treaty applies. The final price to be paid shall at all times be

indicated and shall include the applicable air fare or air rate as

well as all applicable taxes, and charges, surcharges and fees

which are unavoidable and foreseeable at the time of publication.

In addition to the indication of the final price, at least the

following shall be specified:

(a) air fare or air rate;

(b) taxes;

L 293/14 EN Official Journal of the European Union 31.10.2008
(c) airport charges; and

(d) other charges, surcharges or fees, such as those related to

security or fuel;

where the items listed under (b), (c) and (d) have been added to

the air fare or air rate. Optional price supplements shall be

communicated in a clear, transparent and unambiguous way at

the start of any booking process and their acceptance by the

customer shall be on an ‘opt-in’ basis.

2. Without prejudice to Article 16(1), access to air fares and air

rates for air services from an airport located in the territory of a

Member State to which the Treaty applies, available to the general

public shall be granted without any discrimination based on the

nationality or the place of residence of the customer or on the

place of establishment of the air carrier's agent or other ticket

seller within the Community.

Article 24

Penalties

Member States shall ensure compliance with the rules set out in

this Chapter and shall lay down penalties for infringements

thereof. Those penalties shall be effective, proportionate and

dissuasive.

CHAPTER V

FINAL PROVISIONS

Article 25

Committee

1. The Commission shall be assisted by a committee.

2. Where reference is made to this paragraph, Articles 3 and 7

of Decision 1999/468/EC shall apply, having regard to the

provisions of Article 8 thereof.

Article 26

Cooperation and right to obtain information

1. Member States and the Commission shall cooperate in

applying and in monitoring the application of this Regulation.

2. In order to carry out its duties under this Regulation the

Commission may obtain all necessary information from Member

States, which shall also facilitate the provision of information by

air carriers licensed by their competent licensing authorities.

3. Member States shall, according to their national legislation,

take the necessary measures to ensure appropriate confidentiality

of the information received by them pursuant to this Regulation.

Article 27

Repeal

Regulations (EEC) No 2407/92, (EEC) No 2408/92 and (EEC)

No 2409/92 shall be repealed.

References to the repealed Regulations shall be construed as

references to this Regulation and shall be read in accordance with

the correlation table in Annex II.

Article 28

Entry into force

This Regulation shall enter into force on the day following its

publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Strasbourg, 24 September 2008.

For the European Parliament

The President

H.-G. PÖTTERING

For the Council

The President

J.-P. JOUYET

31.10.2008 EN Official Journal of the European Union L 293/15
ANNEX I

INFORMATION TO BE PROVIDED PURSUANT TO ARTICLES 5 AND 8

1. Information to be provided by a first-time applicant from a financial fitness point of view

1.1. The most recent internal management accounts and, if available, audited accounts for the previous financial year.

1.2. A projected balance sheet, including profit-and-loss account, for the following three years.

1.3. The basis for projected expenditure and income figures on such items as fuel, fares and rates, salaries, maintenance,

depreciation, exchange rate fluctuations, airport charges, air navigation charges, ground handling costs, insurance, etc.

Traffic/revenue forecasts.

1.4. Details of the start-up costs incurred in the period from submission of an application to the commencement of

operations and an explanation of how it is proposed to finance these costs.

1.5. Details of existing and projected sources of finance.

1.6. Details of shareholders, including nationality and type of shares to be held, and the Articles of Association. If part of a

group of undertakings, information on the relationship between them.

1.7. Projected cash-flow statements and liquidity plans for the first three years of operation.

1.8. Details of the financing of aircraft purchase/leasing including, in the case of leasing, the terms and conditions of

contract.

2. Information to be provided for assessment of the continuing financial fitness of existing licence holders planning a

change in their structures or in their activities with a significant bearing on their finances

2.1. If necessary, the most recent internal management balance sheet and audited accounts for the previous financial year.

2.2. Precise details of all proposed changes e.g. change of type of service, proposed takeover or merger, modifications in

share capital, changes in shareholders, etc.

2.3. A projected balance sheet, with a profit-and-loss account, for the current financial year, including all proposed changes

in structure or activities with a significant bearing on finances.

2.4. Past and projected expenditure and income figures on such items as fuel, fares and rates, salaries, maintenance,

depreciation, exchange rate fluctuations, airport charges, air navigation charges, ground handling costs, insurance, etc.

Traffic/revenue forecasts.

2.5. Cash-flow statements and liquidity plans for the following year, including all proposed changes in structure or

activities with a significant bearing on finances.

2.6. Details of the financing of aircraft purchase/leasing including, in the case of leasing, the terms and conditions of

contract.

3. Information to be provided for assessment of the continuing financial fitness of existing licence holders

3.1. Audited accounts no later than six months following the last day of the relevant financial year, unless otherwise

provided for in national law and, if necessary, the most recent internal management balance sheet.

L 293/16 EN Official Journal of the European Union 31.10.2008
3.2. A projected balance sheet, including profit-and-loss account, for the forthcoming year.

3.3. Past and projected expenditure and income figures on such items as fuel, fares and rates, salaries, maintenance,

depreciation, exchange rate fluctuations, airport charges, air navigation charges, ground handling costs, insurance, etc.

Traffic/revenue forecasts.

3.4. Cash-flow statements and liquidity plans for the following year.

31.10.2008 EN Official Journal of the European Union L 293/17
ANNEX II

CORRELATION TABLE

(Referred to in Article 27)

Regulation (EEC) No 2407/92 This Regulation

Article 1(1) Article 1

Article 1(2) Article 3(3)

Article 2 Article 2

Article 3(1) Article 3(2)

Article 3(2) the second subparagraph of Article 3(1)

Article 3(3) the first subparagraph of Article 3(1)

Article 4(1) Article 4

Article 4(2) Article 4(f)

Article 4(3) —

Article 4(4) Article 4(f)

Article 4(5) the second subparagraph of Article 8(1)

Article 5(1) Article 5(1)

Article 5(2) Article 5(2)

Article 5(3) Article 8(5)

Article 5(4) Article 8(6)

Article 5(5) Article 9(1)

Article 5(6) Article 8(4)

Article 5(7) Article 5(3) and Article 8(8)

Article 6 Article 7

Article 7 Article 11

Article 8(1) Article 4(c)

Article 8(2) Article 12(1)

Article 8(3) Article 13(2) and (3)

Article 8(4) Article 12(2)

Article 9 Article 6

Article 10(1) Article 13(2) and (3)

Article 10(2) Article 13(2) and (3)

Article 11(1) Article 8(1)

Article 11(2) Article 8(3)

Article 11(3) Article 8(7)

Article 12 Articles 9(2) to (6)

Article 13(1) Article 10(2)

Article 13(2) Article 10(1)

Article 13(3) —

Article 13(4) Article 10(3)

Article 14 —

Article 15 —

Article 16 —

Article 17 —

Article 18(1) Article 26(1)

Article 18(2) Article 26(3)

Article 19 —

ANNEX ANNEX I

Regulation (EEC) No 2408/92 This Regulation

Article 1(1) Article 1

Article 1(2) Article 1(2)

Article 1(3) —

Article 1(4) —

L 293/18 EN Official Journal of the European Union 31.10.2008
Regulation (EEC) No 2408/92 This Regulation

Article 2 Article 2

Article 3(1) Article 15(1) and (2)

Article 3(2) —

Article 3(3) —

Article 3(4) —

Article 4(1)(a) Article 16(1)

Article 4(1)(b) Article 16(3)

Article 4(1)(c) Article 16(2)

Article 4(1)(d) Article 16(9)

— Article 17(1)

— Article 17(2)

— Article 17(4)

— Article 17(5)

— Article 17(6)

Article 4(1)(e) Article 17(3)

Article 4(1)(f) Article 17(7)

Article 4(1)(g) —

Article 4(1)(h) Article 17(8)

— Article 17(9)

— Article 17(10)

Article 4(1)(i) Article 18(1)

Article 4(1)(j) Article 16(7)

Article 4(1)(k) —

Article 4(2) —

Article 4(3) Article 18(2)

Article 4(4) —

Article 5 —

Article 6(1) and (2) —

Article 7 Article 15(4) and (5)

Article 8(1) Article 19(2)

Article 8(2) Article 19(1)

Article 8(3) Article 19(3)

Article 8(4) —

Article 8(5) —

Article 9(1) Article 20(1)

Article 9(2) Article 20(1)

Article 9(3) Article 20(2)

Article 9(4) Article 20(3)

Article 9(5) Article 22(1)

Article 9(6) Article 22(2)

Article 9(7) —

Article 9(8) —

Article 10 —

Article 11 Article 25

Article 12(1) Article 26(2)

Article 12(2) —

Article 13 —

Article 14(1) Article 26(1)

Article 14(2) Article 26(3)

Article 15 —

Article 16 —

ANNEX I —

ANNEX II —

ANNEX III —

— ANNEX II

31.10.2008 EN Official Journal of the European Union L 293/19
Regulation (EEC) No 2409/92 This Regulation

Article 1(1) Article 1

Article 1(2) Article 21(1)

Article 1(3) —

Article 2 Article 2

Article 3 —

Article 4 Article 23

Article 5(1) Article 22

Article 5(2) —

Article 5(3) —

Article 5(4) —

Article 6 —

Article 7 —

Article 8 —

Article 9 —

Article 10(1) Article 26(1)

Article 10(2) Article 26(3)

Article 11 —

Article 12 —

— Article 27

— Article 28

L 293/20 EN Official Journal of the European Union 31.10.2008
-

Second Aviation Forum 

on Liberalisation and Labour 

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F\JNDED 8r lHE 8.JROI'ENI OOI.IMISSDN. DIAECTIJRATE GEfEJW. FOR EXTEFNAl RELAnONS 

Brussels 

22-23 June 2009 

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fo, [ nf'rgy 

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EUROPEAN 

COM,.IS SION 
2

Executive Summary 

Introduction 

1. This document summarises the main points arising from the Second EU-US Aviation 

Forum on Liberalisation and Labour ('Labour Forum') which took place on 22-23 June 

2009 in Brussels. 

2. This second Labour Forum was organised by the Directorate General for External 

Relations (DG Relex) and the Directorate General for Energy and Transport (DG Tren). It 

followed on from the first Labour Forum held in Washington on 3-4 December 2008. 

3. The aim of the second Labour Forum was to further develop the understanding of social 

issues relating to existing and proposed reforms under discussion in the context of the 

EU-US Aviation Agreement and the associated second stage negotiations, notably those 

associated with the reform of traditional nationality-based ownership and control rules. A 

programme for the event, as well as electronic copies of the presentations given, can be 

found on the DG Tren website at: 

http://ec.europa.eu/transport/air/events/2009_06_22_int_us_en.htm

4. Further information on EU-US relations can also be found on the DG Relex website: 

http://ec.europa.eu/external_relations/us/index_en.htm

5. The Labour Forum was attended by policy-makers and stakeholders with an interest in 

the social dimension of reforms associated with discussions on the second stage EU-US 

aviation agreement. It was attended by representatives from Europe and the U.S., 

including the U.S. Departments of State and Transportation, airlines, airports, the U.S. 

National Mediation Board, representatives of the European Commission, EU Member 

States, EFTA States, the International Labour Organisation (ILO), academia, Eurofound, 

and trade unions from both sides of the Atlantic. 

Summary of the first Labour Forum and review of the key themes 

6. The first morning of the Forum was dedicated to reviewing the key emerging themes from 

the first Labour Forum and in placing these concerns in the context of similar debates 

held in other sectors. Daniel Calleja, Director of Air Transport presented a short summary 

of the key themes from the first Labour Forum in Washington, noting the general 

commercial and social issues that had been identified, and the various positions of the 

players involved. These key themes were reinforced by stakeholders in a later session on 

the key emerging themes. 

Employee representatives' concerns 

7. The main concern held by social partners such as pilot representatives, the European 

Cockpit Association (ECA), related to the impact that possible ownership and control 

reforms would have on employee and union rights in the trans-national operations that 

would be made possible. The concern was that the freedom for airlines to establish 

themselves (through acquisition, merger or organic growth) on both sides of Atlantic 

would affect the rights traditionally enjoyed by airline employees at the national level (i.e. 

the right to collectively organise, negotiate, agree and enforce agreements at company 

level). The question that a number of social partners believe needs answering is how 

these rights could be protected for workers employed in the US and European airline 

companies based in more than one country?
2

8. It was asserted that such a problem had arisen in recent years within Europe as the 

commercial freedoms granted to airlines had not been matched by developments in 

social protection which are based on differing national regimes. 

Employer representatives' concerns 

9. Representatives from European (the Association of European Airlines - the AEA) and 

American industry (the Air Transport Association – the ATA) focused on the poor-track 

record of the sector in generating profits and the problems that increasingly undercapitalised airlines faced in generating the conditions for sustainable employment. For 

example, it was highlighted that since 2001, the US industry has generated only one year 

of profits and has reduced the number of full time employees by 25 per cent. This was 

neither good for employees nor employers, and there was a shared interest in finding a 

more successful formula for the industry. 

10. The AEA noted that the problem of labour representation in a trans-national environment 

remained an unsolved problem. However, an opportunity existed: a successful second 

stage agreement would provide for greater stability and certainty for the industry, which 

would in turn help in securing its future. The ATA noted that in developing answers to the 

labour problem, negotiators would have to be mindful of the effect on industry. 

The key-note address 

11. The key note address for the Forum was given by Mr Canga-Fano, Vice President and 

Commissioner for Transport, Antonio Tajani's Deputy Head of Cabinet. The key 

messages given by Mr Canga-Fano were that the status quo was something that neither 

totally satisfied the airlines nor their employees. The second stage agreement therefore 

represented an important and unique opportunity to address both the commercial crisis 

facing the industry and the social dimensions of the agreement, and that the European 

side was ready to listen to ideas on how best to do this. 

The challenge of labour in the trans-national context 

12. The keynote speech from Karen Curtis, Deputy Director of the Standards Department at 

the International Labour Organisation (ILO), put the issue of international employee 

representation in aviation in the context of past developments across the economy. The 

protection of labour standards in the face of increased internationalisation was a core 

challenge of the Organisation and an area in which a lot of work had been done. 

Reference was made to the 188 Conventions covering labour standards in a wide-range 

of sectors and a large number of these Conventions are fully applicable in the aviation 

sector. For example, fundamental rights recognised by existing conventions include the 

right to strike and specify the negotiation of collective agreements as an exclusive 

prerogative of trade union representatives. They also stress the binding nature of 

collective agreements. Complaints based on breaches of these basic rights can be 

lodged with the Organisation's Committee of Freedom of Association (CFA), which is 

tasked with up-holding the right to union representation. More than 2700 cases have 

been brought before the CFA in its history. 

13. The ILO explained that, currently, no Convention exists that is tailored to the needs and 

circumstances of the aviation sector (though sectoral Conventions exist for health-care 

workers, shipping, and other trades). The establishment of such a Convention would be 

possible, but would need to be initiated and extensively debated in the ILO's tripartite 

forum (Government, Industry and Employees) before being passed as a Convention – a 

process which would normally take several years and would require a two-thirds vote in 

favour from the ILO membership. Furthermore, a general problem of enforcement with 

such Conventions remained – for example, the ILO relies on moral suasion to enforce its 

Conventions, rather than on any form of legal sanction. 
3

A look at some approaches 

14. The discussion then moved on to a discussion of approaches that have been adopted in 

the aviation sector and other industries to tackle the problem of employee representation 

in a trans-national environment. 

A look at some approaches: trans-national agreements 

15. The first of the themed sessions examined the experience of trans-national agreements 

dealing with social matters in trans-national companies. This included the experience of 

companies in the aviation sector, where a number of agreements have been struck 

between airlines and their employees. 

16. Christian Welz from the European Foundation for the Improvement of Living and Working 

Conditions – Eurofound) introduced the session by giving an overview of trans-national 

agreements, noting that these voluntary agreements were common at the global 

(International framework agreements – IFAs) and European level (European Framework 

Agreements – EFAs). However, there is, as yet, no clear international legal framework for 

their enforcement. They therefore tended to be agreements which framed the broad 

principles of employee-employer relationships at the company level, but often the detail 

was left to national-level agreements between employees and their employers. Such 

framework agreements also tended to be restricted in terms of their scope, with many 

limited to issues such as consultation procedures during periods of company 

restructuring. 

17. KLM (Miriam Kartman) then set out their experience in the aviation sector, which had 

been developed following the Air France economic merger to deal with many of the 

issues associated with the subsequent restructuring. Inspired by the company structure 

('one group, two airlines, three businesses'), the Group's Strategic Management 

Committee was responsible for the framework agreement which had been drawn up to 

protect certain elements within the company such as the existence of the two hubs (Paris 

and Amsterdam), the national identities of the operators and the pre-existing labour 

arrangements for the Air France and KLM sides of the group. It was explained that the 

framework agreement had been crucial in helping to manage the emotional concerns 

associated with mergers such as how best to structure dialogue between management 

and employees, and how to deal with concerns about the sharing of production between 

the companies. 

18. A further example of how airlines had dealt with the trans-national dimension of their 

operations was provided by Mr Nick Charnley, Chairman of easyJet's pilot company 

council. easyJet has major bases in five different Member States and problems arising 

from the application of individual Member State law had led to a realisation that the 

original approach preferred by labour and management of a single contract for all staff 

was not tenable, and there was therefore a need to move to a system of decentralised 

agreements based on tailoring elements of the package to local conditions. This was 

managed within a global framework agreement with the different national representatives. 

This means that although much of the content of collective agreements still tends to be 

negotiated at "group" level, the union structures mean that a coordinated position from 

the different union groups can be difficult because of the absence of a pan-European 

union. The establishment of such a pan-European union is precluded by the absence of a 

suitable legal framework and the consequent reluctance of national unions to cede 

control. In further developing the trans-national dimension of the management-employee 

relationship, it was thought that more use might be made of Works Councils to act as a 

forum for the sharing of views, beyond the Council's limited scope of information sharing 

and consultation (see section, 'A look at some approaches: the Works Council', below). 
4

A look at some approaches: the Works Council 

19. This session examined the functioning of the European Works Council, and how the 

concept has been applied in Europe. 

20. The session was opened by Armindo Silva, acting Director at the European 

Commission's Directorate General for Employment (DG Empl), who explained that Works 

Councils are a concept developed in Europe as a way of structuring dialogue between 

employees and employers, and are aimed at engendering a positive industrial relations 

culture. Under European law (Directive 94/45/EC), companies must establish EWCs 

where they have more than 150 employees in 2 or more Member States and employ over 

1000 people in total. These EWCs must be used to provide information and provide a 

forum for consultation on matters affecting employees. They are not a legal platform for 

negotiations. There are now 890 European Works Councils within Europe representing 

more than 12 million employees. 120 of these EWCs have been established in US firms, 

and the approach is having an effect beyond Europe. It was noted that although the 

statutory basis of EWCs is limited, they have played a particularly important role in cases 

of company restructuring. 

21. A practical perspective on Works Council was provided by Timo Eckard of Vereinigung 

Cockpit, a large German pilots union, which underlined the role of the European Works 

Council as a forum for information exchange in the context of relations with Lufthansa. It 

was noted that such a forum would not (and legally could not) replace company to union 

negotiations on collective agreements – such matters had to be dealt with separately. 

Instead, they were a way of ensuring that employees were adequately informed of 

developments in the company at an appropriate juncture, and as such, they were an 

effective way of ensuring a flow of information between the parties. 

22. A further perspective on Works Councils was provided by Emmanuel Jahan of Air 

France, who explained how the Councils fitted in with the other approaches to dialogue 

such as the trans-national agreement adopted by Air France-KLM and the direct 

negotiations with the labour unions. In reality, it was important to recognise the benefits 

and limitations of EWCs – although they are an effective means of information exchange, 

their role was in practice restricted because they were rarely representative. For 

example, the requirement to field employees from each of the operating states 

irrespective of size, meant that the markets with the largest employment were often 

under-represented on the Council. Furthermore, it was difficult to structure the Council 

along craft lines, making it difficult to ensure representation of, for example, "cabin crew" 

in discussions. Correcting for these problems would simply make the Works Councils 

unwieldy. EWCs were therefore a useful complement to more traditional means of 

dialogue between companies and their employees. 

A look at some approaches: Multinational Conventions 

23. The next approach examined was that of the multinational convention. In the absence of 

harmonised national labour standards for aviation workers, some commentators have 

suggested that a multinational convention on the rights of airline workers might be one 

way forward. One industry which has pioneered such an approach has been the maritime 

sector, and this session examined their experience in this area. 

24. The session was opened by a presentation by George Quick, Vice President of the 

International Organization of Masters, Mates and Pilots, an international union 

representing maritime workers. Mr Quick articulated the negative effects on labour that 

the system of flagging for convenience had generated, noting that it has been difficult to 

establish a system of standards in the sector given that companies are often operating 

outside of national control. He noted that he expected problems to remain, even once the 

Maritime Labour Convention 2006 (see next paragraph) had been brought into force. 
5

25. A detailed account of the efforts made by participants in the sector to agree a revised 

Martime Labour Convention aimed at tackling the problem of inadequate standards in the 

sector was given by Mr Lindemann, former member of the Social Affairs Committee of 

the European Community Shipowners' Associations (ECSA). He explained that in 2001, a 

decision was taken by the ILO members to consolidate and update the existing 

Conventions, which had become out-dated. Following preparatory work, including a 

major conference in 2006, the Maritime Labour Convention 2006 was agreed, 

establishing a new set of basic standards for the industry that must be applied by all 

Members of the ILO. It covers the minimum requirements for seafarers to work on a ship, 

conditions of employment, hours of work and rest, wages, leave, repatriation, 

accommodation, recreational facilities, food and catering, occupational safety and health 

protection, medical care, welfare and social security protection. Enforcement of the 

standards remains an issue, and much of that work falls to the port authorities to inspect 

the ships' certification. Nevertheless, Mr Lindemann noted that the Convention was 

widely viewed as a positive step for those employed in the industry, and its 

implementation will be monitored closely. 

A look at some approaches: Common Labour Standards 

26. This session examined how common labour standards might be ensured across a 

company operating in more than one national jurisdiction. 

27. Karen Curtis from the ILO noted that there were a number of approaches to establishing 

common standards, some of which involved soft law (declarations) or hard law (treaties). 

Presently, agreements such as trans-national agreements (IFAs) lacked a clear means of 

enforcement, given that the trans-national nature did not sit comfortably with the national 

basis on which labour law was implemented. 

28. Seth Rosen, Director of the International Pilots Service Corporation, stressed that 

aviation was a very union-dense sector and that involvement of the unions was therefore 

essential. He also noted that airlines needed to be profitable to secure the future of their 

employees; "without sustained profitability, we have nothing". Mr Rosen noted that an 

example of securing common labour standards in aviation was Scandinavian Airlines, 

where S.A.S. had been successful in ensuring common standards across their company 

since the creation of the airline in the 1950s. This single contract was enforceable under 

Swedish law and had been in operation through three rounds of restructuring since 1978. 

This idea that change was necessary was picked up by Mr Grau-Tanner of IATA, who 

noted that the industry had so far been unable to find a financially sustainable path, and 

the performance of the industry was likely to severely deteriorate given the current 

economic crisis. 

29. François Ballestero, Political Secretary from the European Transport Workers Federation 

(ETF) set out the Federation's thoughts on what was needed to secure common labour 

standards across companies. The emphasis should be on the quality as well as the 

quantity of jobs. A list of the solutions proposed by the ETF is included under the section 

'Moving the debate forward'. 

A look at some approaches: the Convergence of Labour Law 

30. The last themed session of the Forum was aimed at examining the steps that would be 

needed to ensure convergence in the labour laws of the parties. This session was a 

chance for a discussion on the practical and political obstacles of trying to obtain a single 

set of labour laws as a precondition for action on reforming ownership and control 

restrictions in the industry. Opening the session, Marc van Hoof, Director of the 

European Commission's Legal Service set out the legal position with regard to the Treaty, 

noting that the Treaty expressly excluded certain areas of social policy from action at the 

Community level, namely: pay, right of association, social security and the right to strike. 
6

These fundamental exclusions make it impossible for the Commission to bring forward 

proposals on any of these issues, except in concert with Member States in the context of 

a dedicated mixed agreement such as the EU-US second stage agreement. 

31. Carlos Salas, Vice Chairman of the European Cockpit Association (ECA) responded by 

noting that the Association had been a strong supporter of regulatory convergence as a 

means of improving standards in the industry across a number of areas such as security, 

safety and economic regulation. A similar approach could be advocated for social 

matters, though the key issue was ensuring recognition of existing arrangements such as 

negotiated collective agreements. When combined with information sharing and a 

common set of labour standards, this should provide the basis for an effective and 

sustainable dialogue between employees and employers. 

32. Paul Rice, first Vice President of the US Air Line Pilots' Association (ALPA), concluded 

the session by stating that it was essential that the protection offered to workers was not 

diluted by moves to grant greater commercial freedom to airlines. The preferred way for 

doing this would be to provide for a single labour law in Europe based on the provisions 

of the US Railway Labor Act, which provided for clear procedures for the selection of 

bargaining representatives, a clear negotiation framework, a dispute resolution 

procedure, and a clear enforcement mechanism. Ultimately, he noted, there were four 

fundamentals of labour rights that needed to be protected: the ability to organise, 

negotiate, agree and enforce collectively. 

 Moving the debate forward 

33. The last session of the Forum was an attempt to try and summarise the key findings of 

the day and a half of discussions and identify a way forward. A number of social partners 

had developed a number of recommendations for how social considerations might be 

incorporated in the second stage EU-US negotiations. These formulations are 

summarised below. 

a. Formulation 1 – International Pilots Service Corporation

A second stage agreement would need to be assessed using the 

following criteria: 

i. Does the union have the strength to be able to negotiate with the 

company? 

ii. Can the distribution of work be properly agreed upon? 

iii. Is it possible to enforce the contract? 

iv. Can individual rights be properly protected? 

b. Formulation 2 - European Cockpit Association (ECA)

A second stage agreement would need to: 

i. Allow coherent election of independent representatives across all 

company fleets 

ii. Encourage negotiation between management and (mobile) staff at all 

levels 

iii. Acknowledge agreements 
7

iv. Enable enforcement of the terms 

c. Formulation 3 – Air Line Pilots' Asssociation (ALPA)

A second stage EU-US agreement would need to be based on: 

i. Single EU labour law 

ii. Single representation for class and craft 

iii. Selection of bargaining representative 

iv. Negotiation framework 

v. Dispute resolution 

vi. Enforcement mechanism

d. Formulation 4 – European Transport Workers' Federation (ETF)

A second stage agreement should include the following: 

i. References to ILO conventions, OECD Guidelines, Rome Convention 

and European Social Charter 

ii. In case of trans-national airlines, mutual recognition of national trade 

unions where the company has the majority of its operations, their 

rights and collective agreements and their extension to the other 

countries + enforcement of the CBA 

iii. Establishment of a « Joint Work’s Body » when, at least, 2 companies 

are jointly involved in business + mutual recognition of trade unions 

iv. Application of national social protection where the employee routinely 

performs his/her duty 

v. To guarantee the individual rights as regards labor contracts, working 

time, vocational training and social benefits 

vi. To identify areas of convergence and nonconvergence on social 

issues between EU and USA 

vii. To set up a permanent EU-USA Labour Forum with the aim to make 

recommendations to the EU-USA governing bodies 

34. It was agreed that as part of the process of developing these and other ideas for possible 

inclusion in a second stage agreement, an independent "explorateur", Claude Chêne, 

would be appointed to develop a report on the issues. Claude Chêne is an ex-Director of 

Air Transport at the European Commission and is currently involved in a number of other 

studies for the Commission, including in the field of transport.