COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(91) 299 fina| 
Brussels, 30 August 1991 
Proposal for a 
COUNCIL DECISION 
concerning an Agreement between the European 
Economic Community, the Kingdom of Norway and the 
Kingdom of Sweden on civil aviation 
(presented by the Commission) 
EXPLANATORY MEMORANDUM 
1. By its decision of 18-19 June 1990 the Council authorized the 
Commission to open negotiations with Norway and Sweden using as a 
basis the negotiating directives drafted for the purpose of the 
negotiations between the Community and the EFTA States. 
2. The Commission has in coordination and close consultation with 
Member States conducted negotiations with a Joint delegation from 
Norway and Sweden. Agreement could be reached on a text which 
will make all Community legislation affecting the air transport 
sector applicable in Norway and Sweden. 
3. The draft Agreement which is annexed to the attached proposal for a 
Council Decision is structured in six chapters, an Annex and three 
Protocols. 
Chapter I deals with the scope of the Agreement. It 
establishes that the "acquis communautaire" and 
interpretations of the Court of Justice of the 
European Communities and of the Commission shall be 
applicab le. 
Chapter 11 contains a transcription of the competition articles 
of the Treaty. 
Chapter 111 creates the rights for the Commission to implement 
the competition articles and the Regulations and 
Directives which form part of the "acquis" directly 
in Norway and Sweden. 
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Chapter IV establishes a Joint Committee and spells out its 
tasks. It contains provisions for consultations and a 
procedure to ensure that future Community legislation 
concerning air transport will also become part of the 
agreement. 
Chapter V contains provisions for consultation and a procedure 
to deal with relations with third countries and with 
international organisations. 
Chapter VI deals with provisions regarding entry into force and 
review of the Agreement. This chapter also contains 
the provision that the Agreement shall cease to be in 
force from the date an agreement between EEC and the 
EFTA countries on the European Economic Area enters 
into force. 
Annex lists the relevant "acquis communautaire" and extends 
the scope of the Regulations and Directives to Norway 
and Sweden. 
Protocol 1 deals with future legislation by the Community. 
Parties agree that relevant Regulations and 
Directives which will be developed by the Community 
shall be considered for inclusion in the Agreement. 
Protocol 2 transcribes declarations from the Council and from 
the Commission concerning the implementation of 
specific articles of various Council Regulations and 
Directives so as to ensure that the Agreement will be 
implemented in the same way in all Contracting 
Parties. 
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Protocol 3 : describes the position taken by the Council with 
regard to the problems of air traffic congestion in 
Europe. 
4. The Commission believes that this Agreement meets the negotiating 
directives as established by the Council and proposes that the 
Council adopts the attached proposal for a decision. 
PROPOSAL FOR A COUNCIL DECISION 
concerning the conclusion of an Agreement between the European 
Economic Community, the Kingdom of Norway and the Kingdom 
of Sweden on civiI aviation. 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic 
Community and in particular article 113 thereof, 
Having regard to the proposal from the Commission^1) 
Whereas the Council has decided at its meeting of 18-19 June 1990 that 
negotiations with Norway and Sweden should not be further delayed and 
has authorized the Commission to open negotiations with these two 
countries, using as a basis the negotiating directives drafted for the 
purpose of the negotiations between the Community and the EFTA States; 
Whereas the Commission has conducted the negotiations in close 
coordination and consultation with the Member States throughout the 
negotiating process; 
Whereas the Agreement permits the creation, in the area covered by the 
European Economic Community, the Kingdom of Norway and the Kingdom of 
Sweden, of a set of rules applicable to civil aviation, thus permitting 
the establishment of a uniform system of rules concerning market 
access, airline capacity as well as price fixing in that field; 
Whereas, as a consequence, the conclusion of the agreement is part of 
the common commercial policy and should therefore be based on article 
113 of the EEC Treaty, requirements of a technical nature would be 
considered as supplementary to the above mentioned provisions; 
(1) 
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Whereas finally the agreed text resulting from the negotiations meets 
the negotiating directives for the conclusion of an agreement between 
the EEC and EFTA States on air transport. 
HAS DECIDED AS FOLLOWS 
Article 1 
The Agreement between the European Economic Community, the Kingdom of 
Norway and the Kingdom of Sweden on civil aviation is hereby approved 
on behalf of the Community. 
The text of the Agreement is attached to this Decision. 
Art icle 2 
The President of the Council shall carry out the necessary formalities 
as provided for in Article 23 of the Agreement. 
Art icle 3 
The Commission, assisted by with representatives of the Member States, 
shall represent the Community in the Joint Committee set up by 
Article 13 of the Agreement. 
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Article 4 
This Decision shall enter into force on the day following its 
publication in the Official Journal of the European Communities. 
Done at For the Council 
The President 
AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY,THE KINGDOM 
OF NORWAY AND THE KINGDOM OF SWEDEN ON CIVIL AVIATION 
The Contracting Parties; 
Desiring to set out rules for civil aviation within the area covered by 
the EEC, the Kingdom of Norway and the Kingdom of Sweden, rules which 
are without prejudice to those contained in the EEC Treaty and in 
particular to existing Community competences under Articles 85 and 86 
of the EEC Treaty and the competition rules derived therefrom; 
Agreeing that it is appropriate to base these rules on the legislation 
in force within the European Economic Community; 
Desiring to prevent, in full deference to the independence of the 
courts, divergent interpretations and to arrive at as uniform an 
interpretation as possible of the provisions of this Agreement and 
those provisions of Community legislation which are substantially 
reproduced in this Agreement; 
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Whereas this Agreement shall not prejudge the outcome of the 
negotiations between EEC and the EFTA countries on the European 
Economic Area and in particular in respect of the rules of competition 
and state aid and shall be terminated on-the date on which an agreement 
between the EEC and the EFTA countries on the said European Economic 
Area enters into force ; 
Have agreed as follows: 
CHAPTER 1 
Article 1 
1. This Agreement sets out rules for the Contracting Parties in the 
field of civil aviation. These rules are without prejudice to 
those contained in the EEC Treaty and in particular to existing 
Community competences under Articles 85 and 86 of the EEC Treaty 
and the competition rules derived therefrom. 
For this purpose the provisions laid down by the Regulations and 
Directives specified at any time in the Annex shall apply under the 
conditions set out hereafter. The interpretations of the said 
provisions shall be in accordance with the interpretations provided 
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by the Court of Justice of the European Communities or the EEC 
Commission (hereafter called the Commission) applicable to articles 
4 to 6, to the corresponding articles of the EEC Treaty and to 
those Regulations and Directives. Such interpretations handed down 
after the signature of the agreement shall be communicated to 
Norway and Sweden. 
On request by a Contracting Party the Joint Committee shall 
exchange views pursuant to Article 13 on the implications of such 
interpretations for the proper functioning of the Agreement. 
3. The Parties to this Agreement shall take all appropriate measures 
whether general or particular, to ensure fulfilment of the 
obligations arising out of this Agreement and shall refrain from 
any measure which would jeopardize attainment of the objectives of 
this Agreement. 
Article 2 
Any service covered by this Agreement, operated by the Scandinavian 
Airlines System (SAS) between one of the States in which the parent 
companies are registered and another State within the Community is 
considered as a third or fourth freedom service. 
3) 
- 4 -
CHAPTER 2 
Article 3 
The provisions in Articles 4 to 6 and the Annex shall apply to the 
extent that they concern air transport or an associated matter 
mentioned in the Annex. 
Article 4 
1. The following shall be prohibited as incompatible with this 
Agreement : all agreements between undertakings, decision by 
associations of undertakings and concerted practices which may 
affect trade between Contracting Parties and which have as their 
object or effect the prevention, restriction or distortion of 
competition within the territory covered by this Agreement, and in 
particular those which : 
a) directly or indirectly fix purchase or selling prices or 
any other trading conditions; 
b) limit or control production, markets, technical 
development, or investment; 
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c) share markets or sources of supply; 
d) apply dissimilar conditions to equivalent transactions with 
other trading parties, thereby placing them at a 
competitive disadvantage; 
e) make the conclusion of contracts subject to acceptance by 
the other parties of supplementary obligations which, by 
their nature or according to commercial usage, have no 
connection with the subject of such contracts. 
2. Any agreements or decisions prohibited pursuant to this Article 
shall be automatically void. 
3. The provisions of paragraph 1 may, however, be declared 
inapplicable in the case of : 
- any agreement or category of agreements between 
undertakings; 
- any decision or category of decisions by associations of 
undertakings; 
any concerted practice or category of concerted practices; 
which contributes to improving the production or distribution of 
goods or to promoting technical or economic progress, while 
allowing consumers a fair share of the resulting benefit, and which 
does not : 
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a) impose on the undertakings concerned restrictions which are 
not indispensable to the attainment of these objectives; 
b) afford such undertakings the possibility of eliminating 
competition in respect of a substantial part of the 
products in question. 
Article 5 
Any abuse by one or more undertakings of a dominant position within the 
territory covered by this Agreement or in a substantial part of it 
shall be prohibited as incompatible with this Agreement in so far as it 
may affect trade between Contracting Parties. 
Such abuse may, in particular, consist in : 
a) directly or indirectly imposing unfair purchase or selling 
prices or other unfair trading conditions; 
b) limiting production, markets or technical development to the 
prejudice of consumers; 
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c) applying dissimilar conditions to equivalent transactions with 
other trading parties, thereby placing them at a competitive 
disadvantage; 
d) making the conclusion of contracts subject to acceptance by the 
other parties of supplementary obligations which, by their 
nature or according to commercial usage, have no connection 
with the subject of such contracts. 
Article 6 
1. Save as otherwise provided in this Agreement, any aid granted by 
Norway or Sweden or by a Member State of the EEC or through State 
resources in any form whatsoever which distorts or threatens to 
distort competition by favouring certain undertakings or the 
production of certain goods shall, in so far as it affects trade 
between Contracting Parties, be incompatible with this Agreement. 
2. The following shall be compatible with this Agreement : 
a) aid having a social character, granted to individual 
consumers, provided that such aid is granted without 
discrimination related to the origin of the products 
concerned; 
b) aid to make good the damage caused by natural disasters or 
exceptional occurrences. 
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3. The following may be considered to be compatible with this 
Agreement : 
a) aid to promote the economic development of areas where the 
standard of living is abnormally low or where there is 
serious under-employment; 
b) aid to promote the execution of an important project of 
common European interest or to remedy a serious disturbance 
in the economy of a Contracting Party; 
c) aid to facilitate the development of certain economic 
activities or of certain economic areas, where such aid 
does not adversely affect trading conditions to an extent 
contrary to the common interest. 
Article 7 
1. The rules laid down in Article 6 shall be enforced: 
as regards Norway and Sweden, by application of the provisions 
of paras. 2 to 6 and the appropriate national rules and 
regulations of those States; 
- as regards the EEC, under the Treaty of Rome. 
9 -
2. With regard to aids granted by Norway and Sweden the Commission 
shall, in cooperation with Norway and Sweden, keep under constant 
review all systems of aid existing in those States. It shall 
propose to the latter any appropriate measures required by the 
progressive development or by the functioning of this Agreement. 
If, after giving notice to the parties concerned to submit their 
comments, the Commission finds that aid granted by one of those 
States or through State resources is not compatible with this 
Agreement having regard to Article 6, or that such aid is being 
misused, it shall inform the State concerned and shall request that 
such aid be abolished or altered within a period of time to be 
determined by the Commission. 
4. Unless the State concerned notifies the other Contracting Parties 
that it is not in agreement with the action requested, it shall 
take the necessary measures and inform the Commission thereof. 
5. If the State concerned is not in agreement with the action 
requested by the Commission the matter shall within 21 days be 
submitted to the Joint Committee, which shall meet within 14 days 
of the date of submission. 
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6. The Commission shall be informed, in sufficient time to enable it 
to submit its comments, of any plans to grant or alter aid. If it 
considers that any such plan is not compatible with this Agreement 
having regard to Article 6, it shall without delay initiate the 
procedure provided for in paragraph 3. The State concerned shall 
not put its proposed measures into effect until this procedure has 
resulted in a final decision. 
CHAPTER 3 
Article 8 
1. Norway and Sweden shall ensure that the Commission is given the 
information foreseen in the Annex in respect of the application of 
the rules in Articles 4-5 and the Annex . 
In instances where the Commission may obtain information directly 
from undertakings as provided for in the Annex to this Agreement 
Norway and Sweden shall upon request provide the Commission with 
such information and/or arrange if requested for a direct visit on 
a specified date and invite the Commission to participate, while 
respecting the relevant procedural guarantees laid down by national 
law. 
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Article 9 
1. Norway and Sweden shall ensure that Articles 4, 5 and 6 and the 
provisions of the Regulations and Directives specified in the Annex 
are applied in their territories and enforced with the same effect 
as in the EEC. 
The Contracting Parties shall ensure that the rights which devolve 
from Articles 4, 5, 6, 7 and the above-mentioned Regulations and 
Directives may be invoked before the national courts. 
Article 10 
All questions concerning the validity of decisions of the institutions 
of the Community, pursuant to Articles 4, 5, 6, 7 and the Regulations 
and Directives specified in the Annex to this Agreement shall be of the 
exclusive competence of the Court of Justice of the European 
Communities. 
(4) 
- 12 -
Article 11 
1. Whenever a decision contains a request for action to be taken by 
Norway and/or Sweden pursuant to the Regulations and Directives 
specified in the Annex then, unless the State concerned notifies 
the other Contracting Parties that it is not in agreement with the 
action requested, it shall take the necessary measures and inform 
the Commission thereof. 
2. If the State concerned is not in agreement with the action 
requested by the Commission the matter shall within 21 days be 
submitted to the Joint Committee referred to in Article 13 which 
shall meet within 14 days of thé date of submission. 
CHAPTER 4 
Article 12 
1. The Agreement shall be without prejudice to the right of each 
Contracting Party, subject to compliance with the principle of non 
discrimination and the provisions of this Article and of Article 13 
paragraph 2, unilaterally to amend its domestic legislation on a 
point regulated by this Agreement. 
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2. As soon as a Contracting Party has adopted an amendment of its 
domestic legislation it shall inform the other Contracting Parties 
via the Joint Committee referred to in Article 13, eight days 
after adoption at the latest. The Joint Committee shall within 14 
days thereafter hold an exchange of views on the implications of 
such an amendment for the proper functioning of the Agreement. 
3. The Joint Committee shall : 
either adopt a decision revising the provisions of the 
Agreement so as to integrate therein, if necessary on a 
basis of reciprocity, the amendments made to the 
legislation in question; 
or adopt a decision to the effect that the amendments to 
the legislation in question shall be regarded as in 
accordance with the Agreement; 
or decide any other measure to safeguard the proper 
functioning of the Agreement. 
Article 13 
1. A Joint Committee is hereby established which shall be responsible 
for the administration of the Agreement and shall ensure its proper 
implementation. For this purpose it shall make recommendations 
and take decisions by unanimity. The decisions of the Joint 
Committee shall be put into effect by the Contracting Parties in 
accordance with their own rules. 
14 -
2. For the purpose of the proper implementation of this Agreement, the 
Contracting Parties shall exchange information and, at the request 
of either party, shall hold consultations within the Joint 
Committee. 
3. The Joint Committee shall adopt its own rules of procedure at the 
latest 21 days after the entry into force of this Agreement. 
4. The Joint Committee shall consist of one representative each of 
Norway and Sweden on the one hand and the EEC on the other hand. 
5. Norway or Sweden and the EEC shall preside in turn over the Joint 
Committee in accordance with the arrangements to be laid down in 
its rules of procedure. 
6. The chairman shall convene meetings of the Joint Committee at least 
once a year in order to review the general functioning of the 
Agreement and whenever special circumstances so require, at the 
request of either Contracting Party. 
7. The Joint Committee shall, in addition, meet in conformity with 
articles 1, 7, 11 and 12. In the case of disagreement the decision 
shall be referred to a subsequent meeting of the Joint Committee to 
be held within two months from the date of referral in accordance 
with the conditions to be laid down in its rules of procedure. 
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8. The Joint Committee may decide to set up any working party that can 
assist it in carrying out its duties. 
Article 14 
1. A Décision of the Joint Committee shall be binding upon the 
Contracting Parties. 
If, in the view of one of the Contracting Parties, a decision of the 
Joint Committee is not properly implemented by another Contracting 
Party concerned, the former may request that the issue shall be 
discussed by the Joint Committee. If the Joint Committee cannot 
resolve the issue within two months of its referral, the Agreement 
shall cease to be in force. 
The decision of the Joint Committee shall be published in the 
Official Journal of the European Communities. Each decision shall 
state the date of its implementation in the three Contracting 
Parties and any other information likely to concern economic 
operators. The decisions shall be submitted if necessary for 
ratification or approval by the Contracting Parties in accordance 
with their own procedures. 
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4. The Contracting Parties shall notify each other of the completion 
of this formality. If upon the expiry of a period of twelve months 
after adoption of a decision by the Joint Committee such 
notification has not taken place, paragraph 5 shall apply mutatis 
mutandis. 
5. If the Joint Committee does not take the decisions pursuant to 
articles 1.2, 7.5, 9.1, 11.2 and 12.3 within six months of the date 
of referral , this Agreement shall cease to be in force. 
6. As regards legislation covered by article 12 between the signature 
of the Agreement and its entry into force of which the other 
Contracting Parties have been informed the date of referral in 
paragraph 5 shall be taken as the date on which the information was 
received. The date on which the Joint Committee shall reach a 
decision can not be earlier than 2 months after the date of entry 
into force of the Agreement. 
Chapter 5 
Article 15 
The Contracting Parties shall consult each other, at the request of 
either party, in accordance with the procedures laid down in 
Articles 16, 17 and 18 
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(a) on air transport questions dealt with in international 
organizations ; and 
(b) on the various aspects of developments which have taken place in 
relations between Contracting Parties and third countries in air 
transport, and on the functioning of the significant elements of 
bilateral or multilateral agreements concluded in this field. 
The consultations shall be held within one month of the request or as 
soon as possible in urgent cases. 
Article 16 
1. The main aims of the consultations provided for in Article 15(a) 
shall be : 
(a) to determine jointly whether the questions raise problems of 
common interest; and 
(b) depending upon the nature of such problems : 
to consider jointly whether Contracting Parties' action 
within the international organizations concerned should be 
coordinated, or 
- to consider jointly any other approach which might be 
appropriate. 
2. The Contracting Parties shall as soon as possible exchange any 
information of relevance to the aims described in paragraph 1. 
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Article 17 
1. The main aims of the consultations provided for in Article 15(b) 
shall be to examine the relevant issues and to consider any 
approach which might be appropriate. 
For the purposes of the consultations referred to in paragraph 1, 
each Contracting Party shall inform the other Contracting Parties 
of developments which have taken place in the field of air 
transport and of the operation of bilateral or multilateral 
agreements concluded in that field, if it considers this likely to 
contribute to the identification of problems of common interest. 
Article 18 
1. The consultations provided for in articles 15, 16 and 17 shall take 
place within the framework of the Joint Committee. 
2. The information and consultations provided for in articles 15, 16 
and 17 shall be covered by professional secrecy. 
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CHAPTER 6 
Article 19 
1. This Agreement shall remain in force unless denounced by one of the 
Contracting Parties. 
2. Each Contracting Party may denounce the Agreement by notifying the 
other Contracting Parties. The Agreement shall cease to be in force 
1 year after the day of notification. 
3. This Agreement shall cease to be in force from the date an 
agreement between EEC and the EFTA countries on the European 
Economic Area enters into force. 
Article 20 
This Agreement shall be reviewed after request by any Contracting Party 
and at any event after one year of its entry into force. 
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Article 21 
Norway and Sweden shall bring their legislative and administrative 
provisions into conformity with this Agreement before the entry into 
force of the Agreement. 
Article 22 
This Agreement shall supersede the relevant provisions of bilateral 
arrangements in force between Norway and/or Sweden on the one hand and 
Community Member States on the other hand. 
Article 23 
1. This Agreement shall be subject to approval or ratification in 
accordance with the Contracting Parties own procedures and the 
Parties shall notify each other of the completion of the procedures 
necessary for that purpose. 
2. This Agreement shall enter into force on the date on which the last 
instrument of ratification has been deposited. 
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3. This Agreement and the instruments of ratification shall be 
deposited in the archives of the Secretariat of the Council of the 
European Communities, which shall deliver a certified copy thereof 
to each Contracting Party. 
Article 24 
This Agreement is drawn up in all official languages (Danish, Dutch, 
English, French, German, Greek, Italian, Portuguese, Spanish) of the 
Community as well as in the Norwegian and Swedish languages, all these 
texts being equally authentic. 
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ANNEX 
For the purposes of this Agreement Norway and Sweden shall be 
considered as falling within the terms "Member States" and "Community" 
referrred to in the following EEC Directives and Regulations. 
1. 90/2343/EEC 
Council Regulation of 24 July 1990 on access for air carriers to 
scheduled intra-Community air service routes and on the sharing of 
passenger capacity between air carriers on scheduled air services 
between member States 
Articles 1, 2, 3 para I, 4-10, 11 with the exception of para 2, 12-
14, 17 
2. 90/2342/EEC 
Council Regulation of 24 July 1990 on fares for scheduled air 
services 
Articles 1-11, 14 
- 23 -
3. 91/294/EEC 
Council Regulation of 4 February 1991 on the operation of air cargo 
services between Member States 
Articles 1, 2, 3 para 1, 4-11 
4. 62/17/EEC 
Council Regulation of 6 February 1962 implementing Articles 85 and 
86 of the Treaty, as amended by Regulation 59, by Regulation 
118/63/EEC and by Regulation 2822/71/EEC 
Articles 1-9, 10 para 1 and 2, 11-14, 15 with the exception of 
para 3, 16 para 1 and 2, 17-24 
Any reference to Articles 85 or 86 in this Regulation shall be 
understood to mean Articles 4 or 5 of this Agreement respectively. 
5. 87/3975/EEC 
Council Regulation of 14 December 1987 laying down the procedures 
for the application of the rules of competition to undertakings in 
the air transport sector. 
Articles 1-7, 8 para 1 and 2, 9, 10, 11, 12 with the exception of 
para 3, 13 with the exception of para 3, 14-20 
Any reference to Articles 85 or 86 in this Regulation shall be 
understood to mean Articles 4 or 5 of this Agreement respectively. 
- 24 -
6. 87/3976/EEC 
Council Regulation of 14 December 1987 on the application of 
Article 85 (3) of the Treaty to certain categories of agreements 
and concerted practices in the air transport sector. 
Articles 1-5, 7, 9 
Any reference to Articles 85 or 86 in this Regulation shall be 
understood to mean Articles 4 or 5 of this Agreement respectively. 
7. 90/2344/EEC 
Council Regulation of 24 July 1990 amending Regulation (EEC) 
No 3976/87 on the application of Article 85 (3) of the Treaty to 
certain categories of agreements and concerted practices in the air 
transport sector 
Articles 1, 2 
Any reference to Articles 85 or 86 in this Regulation shall be 
understood to mean Articles 4 or 5 of this Agreement respectively. 
- 25 -
8. 91/82/EEC 
Commission Regulation of 5 December 1990 on the application of 
Article 85 (3) of the Treaty to certain categories of agreements, 
decisions and concerted practices concerning ground handling 
services 
Articles 1-5 
Any reference to Articles 85 or 86 in this Regulation shall be 
understood to mean Articles 4 or 5 of this Agreement respectively. 
9. 91/83/EEC 
Commission Regulation of 5 December 1990 on the application of 
Article 85(3) of the Treaty to certain categories of agreements 
between undertakings relating to computer reservation systems for 
air transport services 
Articles 1-13 
Any reference to Articles 85 or 86 in this Regulation shall be 
understood to mean Articles 4 or 5 of this Agreement respectively. 
- 26 -
10. 91/84/EEC 
Commission Regulation of 5 December 1990 on the application of 
Article 85(3) of the Treaty to certain categories of agreements, 
decisions and concerted practices concerning joint planning and 
coordination of capacity, consultations on passenger and cargo 
tariffs rates on scheduled air services and slot allocations at 
airports 
Articles 1-6. 
Any reference to Articles 85 or 86 in this Regulation shall be 
understood to mean Articles 4 or 5 of this Agreement respectively. 
11. 91/295/EEC 
Council Regulation of 4 February 1991 establishing common rules for 
a denied boarding compensation system in scheduled air transport 
Articles 1-10 
12. 89/2299/EEC 
Council Regulation of 24 July 1989 introducing a code of conduct 
for the use of computer reservation systems. 
Articles 1-22 
- 27 -
13. 80/1266/EEC 
Council Directive of 16 December 1980 on future cooperation and 
mutual assistance between the Member States in the field of air 
accident investigation 
Articles 1-2 
14. 80/51/EEC 
Council Directive of 20 December 1979 on the limitation of noise 
emissions from subsonic aircraft as amended by Council Directive 
83/206/EEC of 21 April 1983 
Articles 1-8 
15. 89/629/EEC 
Council Directive of 4 December 1989 on the limitation of noise 
emission from civil subsonic jet aeroplanes 
Articles 1-7 
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16. 90/314/EEC 
Council Directive on package travel, package holidays and package 
tours 
Articles 1-9 
17. 89/4064/EEC 
Council Regulation of 21 December 1989 on the control of 
concentrations between undertakings 
Articles 1-8, 9 para 1-8, 10-18, 19 para 1 and 2, 20-23, 25 
Any reference to Articles 85 or 86 in this Regulation shall be 
understood to mean Articles 4 or 5 of this Agreement respectively. 
18. 80/723/EEC 
Commission Directive of 25 June 1980 on the transparency of 
financial relations between Member States and public undertakings, 
as amended by Commission Directive 85/413/EEC of 24 July 1985. 
Articles 1-8 
- 29 -
19. 90/2367/EEC 
Commission Regulation of 25 July 1990 on the notifications, time 
limits and and hearings provided for in Council Regulation 4064/89 
Articles 1-20 
20. 88/4261/EEC 
Commission Regulation of 16 December 1988 on the complaints, 
applications and hearings provided for in Council Regulation 
3975/87 
Articles 1-15 
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PROTOCOL 1 
THE CONTRACTING PARTIES 
considering that whereas the Agreement envisages the incorporation of 
future legislation in civil aviation; 
whereas the EEC has already announced legislative action in a number of 
areas; 
whereas such action should not lead to future difficulties. 
are agreed that action i.a. in the following areas : 
- Consultation between airports and users 
Mutual acceptance of Licences and harmonisation 
Slot allocation 
Licensing of air carrier and allocation of route rights 
- Common specifications for ATC equipment 
Cabotage 
Value added tax 
- Abolition of tax free sales between the Contracting Parties 
Relations with third countries 
__ Predatory practices 
shall be considered under Article 12 for inclusion in the Agreement. 
31 -
PROTOCOL 2 
THE CONTRACTING PARTIES 
considering that the agreements must be implemented in the same way for 
all the Contracting Parties; 
whereas the Council and the Commission of the EEC have already 
pronounced indications of importance for implementation of specific 
articles 
are agreed that : 
1. In applying the matching provisions of Article 3(5) in point 2 of 
the Annex in respect of non-scheduled air fares it is the product 
which is in the market which must be equivalent in terms of quality 
and conditions. Elements of importance for the assessment would 
be the inclusion or not of additional services such as 
accommodation and also whether the non-scheduled product is legally 
on the market in a regular way according to the definition in 
Article 2(b)(iii)(2) while the Commission may need to assess 
matching of fares with respect to the rules concerning predatory 
behaviour. 
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2. Member States which benefit from the special conditions under 
paragraph 3 of Article 10 in point 1 of the Annex will not, on pain 
of losing such special conditions which they have, grant new rights 
regarding the airports concerned, on terms which would put their 
Community partners at a disadvantage by comparison with carriers 
from third countries outside the Community. 
and that 
3. In a situation where Article 12(2) in point 1 of the Annex is 
invoked, the Commission will examine, in addition to capacity 
utilization, the marketing efforts and the products of air carriers 
from the Member State with the lower market share and will consider 
whether a higher market share should normally be expected. If 
this is the case, the Commission will further consider whether the 
possibilities of the air carriers concerned of competing in the 
market are reduce by virtue, in particular of difficulties 
experienced by congestion at airports, market structure and/or the 
direct impact of the large presence of non-scheduled traffic. 
In arriving at a decision to reduce the 7.5 percentage points, the 
Commission will be guided by the following relationships : 
Market share Reduced growth rate 
between 30 and 25% 5 
less than 25% 4 
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PROTOCOL 3 
THE CONTRACTING PARTIES 
affirm the need for continuation and intensification of the work in 
Eurocontrol to tackle and resolve the problems of air traffic 
congestion in Europe ; 
note that accession to the Eurocontrol Convention of all Member 
States should be seriously considered ; 
invite Member States to co-operate to ensure that more airspace is 
made available for civil traffic and that it is used more flexibly 
and rationally ; 
- welcome the efforts made in the relevant fora to make progress in 
establishing compatible technical and performance specifications 
for air traffic control systems and equipments. 


ISSN 0254-1475 
COM(91) 299 final 
DOCUMENTS 
EN 1107 
Catalogue number : CB-CO-91-378-EN-C 
ISBN 92-77-75488-5 
Office for Official Publications of the European Communities 
L-2985 Luxembourg