OPINION OF THE COMMISSION pursuant to Article 251 (2), third subparagraph, point (c) of the EC Treaty, on the European Parliament's amendment to the Council's common position regarding the proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on insurance requirements for air carriers and aircraft operators AMENDING THE PROPOSAL OF THE COMMISSION pursuant to Article 250 (2) of the EC Treaty

2002/0234 (COD)

OPINION OF THE COMMISSION pursuant to Article 251 (2), third subparagraph, point (c) of the EC Treaty, on the European Parliament's amendment to the Council's common position regarding the proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on insurance requirements for air carriers and aircraft operators

1. Introduction

Article 251(2), third subparagraph, point (c) of the EC Treaty provides that the Commission is to deliver an opinion on the amendments proposed by the European Parliament at second reading. The Commission sets out its opinion below on the sole amendment proposed by Parliament.

2. Background

- Date of transmission of the proposal to the EP and the Council (document COM(2002) 521 final - C5-0455/2002 - 2002/0234(COD)): 25 September 2002

- Date of the opinion of the European Economic and Social Committee: 26 February 2003

- Date of the opinion of the European Parliament in first reading: 13 May 2003

- Date of transmission of the amended proposal (COM(2003) 454 final of 24.7.2003): 28 July 2003

- Date of adoption of the Council's common position: 5 December 2003

- Date of the transmission of the Communication from the Commission to the European Parliament pursuant to the second subparagraph of Article 251(2) of the EC Treaty concerning the common position of the Council (COM(2004) 6 final): 9 January 2004.

- Date of receipt of the Council's common position by the European Parliament: 9 January 2004.

3. Purpose of the proposal

The Commission proposal is designed to establish a legal framework setting out the conditions of insurance and minimum amounts that both Community and third country air carriers and aircraft operators have to observe at all times when they fly into, within, out of or over the Community. These insurance requirements should cover their liability vis-à-vis passengers, baggage, cargo, mail and third parties.

This proposal should provide for legal certainty vis-à-vis Community and non-Community air carriers and aircraft operators and create a level playing field by ensuring transparent, non-discriminatory and harmonised application of the minimum insurance requirements throughout the Community.

4. Opinion of the Commission on the sole amendment by the European Parliament

On 11 March the European Parliament during its plenary session adopted one amendment modifying the sole amendment to the common position previously adopted by the relevant parliamentary Committee (RETT). The Commission can accept this amendment.

The amendment concerns the scope of the regulation and affects insurance requirements for small aircraft below 500 kg including "micro-light" aircraft and gliders. It follows the Commission's initial proposal and focuses on small aircraft used in sports and leisure aviation (gliders and micro-light aircraft), which the Commission had initially proposed to exclude from the scope of the Regulation. It builds up on the idea that on the one hand insurance costs for risks of war and terrorism are too high and would make leisure and sports aviation too costly and on the other the likelihood of damage due to such risks is rather low. Thus the amendment excludes from the scope of the regulation insurance requirements for these aircraft for risks of war and terrorism. For all other risks, these aircraft are covered by the provisions of the regulation.

5. Conclusion

Pursuant to Article 250(2) of the EC Treaty, the Commission amends its proposal as set out above.