NoC206/4113.8.92 OfficialJournaloftheEuropeanCommunities
Amendmenttotheproposalforacouncilregulationonlicencingofaircarriers
(92/C206/04)
COM(92)274final
(SubmittedbytheCommissionon19June1992pursuanttoArticle149(3)oftheEECTreaty)
COMMISSION TEXT(> AMENDMENTS
AmendmentNo1
Article2(e) Article2(e)
(e)businessplanmeansadetaileddescriptionoftheair
carrier'sintendedcommercialactivitiesfortheperiodin
question,inparticularinrelationtothemarket
developmentsandinvestmentstobecarriedout,
includingthefinancialandeconomicimplicationsof
theseactivities;(e)businessplanmeansadescriptionoftheaircarrier's
intendedcommercialactivitiesfortheperiodin
question,inparticularinrelationtothemarket
developments andinvestmentstobecarriedout,
includingthefinancialandeconomicimplicationsof
theseactivities;
AmendmentNo2
Article2(f) Article2(f)
(f)managementaccountmeansadetailedstatementof
incomeandcostsfortheperiodinquestionincludinga
breakdownbetweenairtransportrelatedandother
activities,aswellasbetweenpecuniaryand
nonpecuniaryelements.(f)managementaccountmeansastatementofincomeand
costsfortheperiodinquestionincludingabreakdown
betweenairtransportrelatedandotheractivities,aswell
asbetweenpecuniaryandnonpecuniaryelements.
AmendmentNo3
Article2(f)(i)(new)
{(i)effectivecontrolmeansarelationshipconstitutedby
rights,contractsoranyothermeanswhich,either
separatelyorjointlyandhavingregardtothe
considerations offactorlawinvolved,conferthe
possibilityofexercisingdecisiveinfluenceonan
undertaking,inparticularby:
(a)ownershiportherighttouseallorpartofthe
assetsofanundertaking;
(b)rightsorcontractswhichconferdecisiveinfluence
onthecomposition,votingordecisionsofthe
bodiesofanundertaking .
(•)ForfulltextseeCOM(91)275final—OJNoC258,
4.10.1991.

NoC206/42 OfficialJournaloftheEuropeanCommunities 13.8.92
COMMISSION TEXT AMENDMENTS
AmendmentNo4
Article4(1)
1.Noundertakingshallbegrantedanoperatinglicence
byaMemberStateunlessairtransportisitsmainoccupation
andtheregisteredofficeandprincipalplaceofbusinessis
locatedinthatMemberState.Article4(1)
1.Noundertakingshallbegrantedanoperatinglicence
byaMemberStateunlessairtransportisitsmainoccupation
andtheregisteredofficeandprincipalplaceofbusinessis
locatedinthatMemberState.Anoperatinglicencefora
subsidiaryshallbegrantedbytheMemberStatewherethe
subsidiaryhasbeensetupbytheparentcompany.
AmendmentNo5
Article4(2) Article4(2)
2.Theundertakingmustbeownedandcontinuetobe
owneddirectlyorthroughamajorityshareholdingby
MemberStatesand/ornationalsofMemberStates.Itmust
atalltimesbeeffectivelycontrolledbysuchstatesor2.Theundertakinganditsmanagementmustbe
controlledandcontinuetobecontrolleddirectlyorthrougha
majorityshareholdingbyMemberStatesand/ornationalsof
MemberStates.Itmustalalltimesbeeffectivelyand
decisivelycontrolledbysuchstatesornationals.The
majorityoftheboardofmanagementand/oranyother
supervisoryboardmustberepresentatives ofsuchstatesor
nationals.nationals.Themajorityoftheboardmustberepresentatives
ofsuchstatesornationals.
AmendmentNo6
Article4(3) Article4(3)
3.Notwithstanding paragraph2aircarrierswhichhave
alreadybeenrecognisedinAnnexItoCouncilRegulations
(EEC)No2343/90and(EEC)No294/91retaintheir
rightsunderthisandassociatedRegulationsaslongasthey
meettheotherobligationsinthepresentRegulation.3.Notwithstanding paragraph2anaircarrierwhich,at
thetimeofadoptionofthisRegulation:
(i)eitherhasitscentraladministration andprincipalplace
ofbusinessintheCommunityandhasbeenproviding
scheduledornon-scheduled airservicesinthe
Communityduringthe12monthspriortoadoptionof
thisRegulation;
(ii)orhasbeenprovidingscheduledairservicesbetween
MemberStatesonthebasisofthirdandfourthfreedom
trafficrightsduringthe12monthspriortoadoptionof
thisRegulation;
(lii)orisanaircarrierestablishedsubsequentlytothe
adoptionofthisRegulation;
shallalsobegrantedrightsunderthisandassociated
Regulationsaslongasit:
(i)meetstheotherobligationsinthisRegulation;and
(ii)continuestohaveitscentraladministration and
principalplaceofbusinessintheCommunity;and
(iii)isnotcontrolled,directlyorindirectly,byanyother
non-Community interests.

13.8.92 OfficialJournaloftheEuropeanCommunitiesNoC206/43
COMMISSION TEXT AMENDMENTS
AmendmentNo7
Article4(6)
6.Anaircarriermustonrequestatanytimebeableto
demonstratetothestateresponsiblefortheoperatinglicence
thatitmeetstherequirementsofthisArticle.Article4(6)
6.Anaircarriermustonrequestatanytimebeableto
demonstratetothestateresponsiblefortheoperatinglicence
andtheCommissionthatitmeetstherequirementsofthis
Article.
AmendmentNo8
Article4(7)
7.WhereaMemberStateisnotconvincedthatanair
carriermeetstherequirementsofthisArticleitmayaskthe
Commissiontoverifythesituation.Article4(7)
7.WhereaMemberStateisnotconvincedthatanair
carriermeetstherequirementsofthisArticleitmayaskthe
Commissiontoverifythesituation.Theaircarriershallthen
berequiredtodemonstratetotheCommissionthatitmeets
therequirementsofthisArticle.
AmendmentNo9
Article5(2)(a)
(a)Anaircarrieroperatingaircraftwithlessthan20seats
and/or10tonnesMTOWshallatalltimesbeableto
demonstratethatitsnetcapitalisatleast
ECU100000.Article5(2)(a)
(a)Anaircarrieroperatingaircraftwithlessthan20seats
and/or10tonnesMTOWshall,pursuantto
paragraph1(a)ofthisArticle,atalltimesbeableto
demonstratethatitsnetcapitalisatleast
ECU100000.
AmendmentNo10
Article5(2)(b)
(b)Anyotheraircarriermustatalltimesandinparticular
after12monthsofoperationbeabletodemonstrateto
thereasonablesatisfactionofthelicensingauthorities
thatitcanmeetitsactualpotentialobligationsfora
periodof12months.Article5(2)(b)
(b)Anyotheraircarriermustifrequestedandinparticular
after12monthsofoperationbeabletodemonstrateto
thereasonablesatisfactionofthelicensingauthorities
thatitcanmeetitsactualpotentialobligationsfora
periodof12months.
AmendmentNo11
ArticleS(3),introduction ArticleS(3),introduction
3.ForthepurposesofthisArticleanaircarriershall
provideallrelevantinformationand,inparticularforthe
purposeofparagraph2(b),itshall,atthebeginningofeach
financialyearandwhensubstantialchangesinoperation,
suchastheoperationofanewscheduledserviceora
non-scheduled servicetoanewregion,havebeendecided,
submit:3.ForthepurposesofthisArticleanaircarriershall
provideallrelevantinformationand,inparticularforthe
purposeofparagraph2(b),insofarastheMemberStateso
requests,itshall,atthebeginningofeachfinancialyearand
whensubstantialchangesinoperation,suchastheoperation
ofanewscheduledserviceoranon-scheduled servicetoa
newregion,havebeendecided,submit:

NoC206/44 OfficialJournaloftheEuropeanCommunities13.8.92
COMMISSION TEXT AMENDMENTS
AmendmentNo12
Article5(3)(c) ArticleS(3)(c)
(c)quarterlymanagementaccounts,unlessthelicensing
authoritiesrequiremonthlyaccounts,tobeprovidedno
morethanfourweeksaftertheperiodtowhichthey
refer;and(c)quarterlymanagementaccounts,unlessthelicensing
authoritiesrequireaccountsforshorterperiods,tobe
providednomorethanfourweeksaftertheperiodto
whichtheyrefer;and
AmendmentNo13
Article5(4)
4.Thelicensingauthorityshallreviewthefinancialand
economicsituationofanyaircarrieratleastevery12
months.Article5(4)
4.Ifthelicensingauthoritiesdeemthechangesnotified
under3tohaveasignificantbearingonthefinancesoftheair
carrier,theyshallrequirethesubmissionofarevisedbusiness
planincorporatingthechangesinquestionandcoveringat
leastaperiodof12monthsfromitsdateofimplementation
aswellasalltherelevantinformation (includingthedata
mentionedinAnnexI)toassesswhethertheaircarriercan
meetitsexistingandpotentialobligationsduringthatperiod
of12months.
AmendmentNo14
Article7 Article7
Aconditiontoownaircraftshallnotberequiredforgranting
ormaintainingalicencebutaMemberStatemayrequirethe
aircrafttobeusedbyanaircarriertoberegisteredwithinthe
Community .(a)Anaircarriershallnotberequiredtoownaircraft.
(b)Anaircarriermayberequiredtohaveatitsdisposal
(throughownership,leasingcontractoranyformof
longtermlease),aircrafttechnicallyfitforthesafe
conductoftheoperationswhicharetheobjectofthe
operatinglicence.
(c)Amajorityoftheaircraftusedbyanaircarriermaybe
requiredtoberegisteredintheCommunityorinthe
MemberStateissuingthelicence.
(d)AMemberStaterequestingregistrationofaircraftonits
ownregistermustensuretransfersfromregistersof
otherMemberStateswithoutdelayandfees.
AmendmentNo15
Article8 Article8
Anundertakingwhichcarriesoutcommercialaviation
activitiesmustbeinpossessionofanAOC.TheAOCoran
accompanyingdocumentshallclearlysetoutthetechnical
organisationandexpertiserequiredinordertoensurethe
safeoperationofthespecifiedaviationactivities.1.Theissuingandvalidityatanytimeofanoperating
licenceisdependentuponthepossessionofavalidAOC,
inaccordancewiththecriteriaestablished incouncil
Regulation(EEC)No.../92of...1992onharmonization
oftechnicalrequirementsandadministrative procedures .

13.8.92 OfficialJournaloftheEuropeanCommunities NoC206/45
AMENDMENTS COMMISSION TEXT
2.UntilsuchtimeastheCouncilRegulationreferredtoin
paragraph1isapplicable,nationalregulationsconcerning
theAOCorequivalenttitleconcerningthecertificationofair
transportoperatorsshallapply.(a)Anundertakingshallnotoperateanaircraftforthe
purposeofcommercialaviationactivitiesotherwise
thanunderandinaccordancewiththetermsand
conditionsofanAOC.AnnexIsetsoutthetermsand
formatofanAOC.
b)Anundertakingshallallowthelicensingauthorityto
examineallaspectsofitsintendedoractualoperations
connectedwithanAOC.
AmendmentNo16
Article9(la)(new)
la.Itshallnotbepossibletograntalicencetoan
undertakingortomaintainthelicenceofanundertaking
whichdoesnotmeetthetechnicalstandards.
InthelongruntechnicalstandardsshallrefertotheJAA
standardscurrentlyunderdevelopment .Untilthenthe
MemberStatesshallcontinuetodecideonthebasisoftheir
nationalrequirements .
AmendmentNo17
Article14(4),secondsubparagraph (new)
TheCommissionshalldecidewithin30daysafterreception
oftheappeal.IftheCommissionfindsthatthelicenceshould
havebegranteditshalldirectamotivateddecisiontothe
MemberStateconcerned .
AmendmentNo18
Article17(1)
1.TheCommissionshallpublishareportonthe
applicationofthisRegulationby1January1994andevery
secondyearthereafter.Article17(1)
1.TheCommissionshallpublishareportonthe
applicationofthisRegulationby1January1995andevery
secondyearthereafter.
AmendmentNo19
Article17a(new)
Nolaterthan31December1992theCommission shall
presenttotheCouncilandParliamentacomprehensive
reportexploringthetechnicalandlegalrequirementsaswell
asthepoliticalperspectivesfor:

NoC206/46 OfficialJournaloftheEuropeanCommunities13.8.92
COMMISSION TEXT AMENDMENTS
(a)thecreationofaCommunityregisterforaircarriers;
(b)thecreationofaCommunity CivilAviation
Authority.
Thisreportshalloutlinethedifferentstepsandapossible
timetablefortheirimplementation .
AmendmentNo20
ANNEXJ
AnAOCwillindicatethe:
1.nameandlocationoftheUndertaking ;
2.dateofissue;
3.descriptionofthetypeofoperationsauthorized;
4.type(s)ofaeroplaneauthorisedforuse;
5.registrationsmarksoftheauthorisedaeroplanesexcept
thatanaircarriermayobtainapprovalforanalternative
systemtoinformtheauthorityabouttheaeroplanes
operatedunderitsAOC;
6.authorizedareasofoperation;
7.namesofpostholders;
8.speciallimitation;
9.specialauthorizations/approvals.
TheformatofthaAOCisinappendixA.ANNEXI
A.Guidelinestobeusedinassessingafirst-timeapplicant
fromafinancialfitnesspointofview
1.Themostrecentinternalmanagementaccountsand,
ifavailable,auditedaccountsfortheprevious
financialyear.
2.Aprojectedbalancesheet,includingprofitandloss
accountforthefollowingtwoyears.
3.Thebasisforprojectedexpenditureandincome
figuresonsuchitemsasfuel,tariffs,salaries,
maintenance,depreciation,exchangerate,
fluctuations,airportcharges,insurance,
traffic/revenueforecasts,etc...
4.Detailsofthestart-upcostsincurredintheperiod
fromsubmissionofapplicationtocommencement
ofoperationsandanexplanationofhowitis
proposedtofinancethesecosts.
5.Detailsofexistingandprojectedsourcesof
finance.
6.Detailsofshareholders,includingnationalityand
typeofsharestobeheld,andthearticlesof
association.Iftheapplicantispartofagroupof
companies,informationshouldbesuppliedonthe
relationshipbetweenthem.
7.Projectedcash-flowstatementsandliquidityplans
forthefirsttwoyearsofoperations.
8.Detailsofthefinancingofaircraftpurchase/leasing
including,inthecaseofleasing,thetermsand
conditionsofcontract.
B.Guidelinestobeusedinassessingthecontinuing
financialfitnessofexistinglicenceholdersplanninga
changeintheirstructuresorintheiractivitieswitha
significantbearingontheirfinances.
1.ifnecessary,themostrecentinternalmanagement
balancesheetandauditedaccountsfortheprevious
financialyear.

13.8.92 OfficialJournaloftheEuropeanCommunities NoC206/47
COMMISSION TEXT AMENDMENTS
2.Precisedetailsofallproposedchanges,e.g.change
oftypeofservice,proposedtakeoverormerger,
modifications insharecapital,changesin
shareholders ,etc.
3.Aprojectedbalancesheet,withaprofitandloss
accountforthecurrentfinancialyear,includingall
proposedchangesinstructureoractivitieswitha
significantbearingonfinances.
4.Pastandprojectedexpenditureandincomefigures
onsuchitemsasfueltariffs,salaries,maintenance ,
depreciation,exchangeratefluctuations,airport
charges,insurance,traffic/revenueforecasts,etc.
5.Cash-flowstatementsandliquidityplansforthe
followingyear,includingallproposedchangesin
structureoractivitieswithasignificantbearing
finances.
6.Detailsofthefinancingofaircraftpurchase/leasing
including,thetermsandconditionsofcontract.
C.Guidelinestobeusedinassessingthecontinuing
financialfitnessofexistinglicenceholders
1.Auditedaccountsnotlaterthansixmonthsafterthe
endoftherelevantperiodand,ifnecessary,themost
recentinternalmanagementbalancesheet.
2.Aprojectedbalancesheet,includingprofitandloss
accountfortheforthcomingyear.
3.Pastandprojectedexpenditureandincomefigures
onsuchitemsasfueltariffs,salaries,maintenance,
depreciation,exchangeratefluctuations,airport
charges,insurance,traffic/revenueforecasts,etc.
4.Cash-flowstatementsandliquidityplansforthe
followingyear.