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 on the adoption of a regulation of the European Parliament and of the Council amending Regulation (EC) N° 2027/97 on air carrier liability in the event of accidents

2000/0145 (COD)

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 on the adoption of a regulation of the European Parliament and of the Council amending Regulation (EC) N° 2027/97 on air carrier liability in the event of accidents

(Text with EEA relevance)

1- BACKGROUND

Date of transmission of the proposal to the EP and the Council (document COM(2000) 340 final - 2000/0145(COD): // 6th June 2000

Date of the opinion of the Economic and Social Committee: // 24th January 2001

Date of the opinion of the European Parliament, first reading: // 5th April 2001

Date of transmission of the amended proposal (COM(2001) 273 final - 2000/0145(COD): // 21st May 2001

Date of political agreement by the Council // 28th June 2001

Date of adoption of the common position: // 19th December 2001

2- OBJECTIVE OF THE COMMISSION PROPOSAL

2.1- On 28th May 1999 a new international agreement was signed on the unification of certain rules for international carriage by air, the Montreal Convention. This deals primarily with the liability of air carriers for damages in the event of death and injury, of delay and of mishandling of baggage. The Community signed the Convention and will conclude it, in parallel with the Member States. On 5th April 2001 the Council adopted a decision to allow the Community to conclude that convention.

2.2- The Community has now to amend its existing regulation on the liability of Community air carriers to align it on the Montreal Convention (so far as liability for death and injury are concerned, the Community regulation and the new convention are very close). The Commission therefore proposed an amending regulation with these aims:

- to apply the provisions of the Montreal Convention to transport by Community air carriers (extending the scope of the regulation from death and injury alone to delays and mishandling of baggage);

- to introduce supplementary provisions, mainly concerning advance payments to meet economic hardship and requirements to provide information on liability provisions;

- to extend these rules to all international and to domestic carriage by Community carriers (the Montreal Convention being limited to international carriage between contracting parties).

2.3- The regulation, as amended, would ensure that passengers were properly compensated, whenever they used a Community carrier and whatever their destination, and would contribute to the creation of a uniform system of liability in air transport.

2.4- The Parliament approved the proposal subject to eighteen amendments on first reading. In its amended proposal the Commission accepted thirteen as they stood and two with redrafting nos. 3 and 18. It refused nos. 9 and 10 (part relating to Article 3a, paragraph 1), which stated that the liability of Community carriers should be governed by all the relevant provisions of the Montreal Convention, instead of by specific articles mentioned individually as in the Commission's proposal. As a result the Parliament's draft referred to articles of the Convention additional to those necessary to align Regulation (EC) N° 2027/97 on the Convention. The Commission was concerned that such an extension of Community competence could become a political obstacle to rapid adoption of the amending regulation. The Commission also refused amendment 11, linked to this general reference to the Montreal Convention.

2.5- The Commission accepted three far-reaching amendments concerning the information that carriers must give passengers (nos. 13, 14 and 18). These considerably strengthen the requirements in its proposal. It did, however, significantly redraft no. 18, which provides the text of an information notice that Community carriers would be obliged to use.

3- COMMENTS ON THE COMMON POSITION

3.1- In its common position adopted unanimously, the Council accepted all the Parliament's amendments, but with redrafting of nos. 2, 6, 9, 13, 14, 15, 17 and 18. It included the amendments refused by the Commission, nos. 9 and 10 (part). The Council included a new recital, no. 10, to guide interpretation of the amended regulation in the sense that it did not weaken the protection of passengers and their dependants relative to the present regulation.

3.2- The Council added another recital, no 17, to make clear that Member States can take further measures to implement the Montreal Convention on subjects not covered by the regulation as amended. This point was also addressed in a joint statement by the Council and the Commission (see section 5 for substance).

4- CONCLUSION

The common position is very close to the Commission's modified proposal, with some redrafting. The Council accepted amendments by the Parliament refused by the Commission. This acceptance has removed the Commission's grounds for refusal, that the extension of Community competence might become a political obstacle to adoption of the regulation.

The Commission therefore accepts the common position and the joint declaration attached. It hopes that adoption by the European Parliament and the Council will rapidly follow.

5- STATEMENT OF council and commission

5.1- The common position is accompanied by a joint statement of the Council and the Commission to meet concerns raised by Member States. First the statement recognises that an air carrier offering package tours might possibly be liable under both the amended regulation and the Council Directive 90/314/EEC of 13 June 1990 on package travel, package holidays and package tours. The Council and Commission will therefore consider the need for clarification of the issue.

5.2- Second, it notes that the regulation does not cover all carriers liable under the Montreal Convention. In fact the regulation's scope is limited to air carriers licensed in the Community, while the Convention extends to all carriers contracting for air transport (who may not operate flights themselves). It calls on Member States to cover international carriage falling within the scope of the Convention but not of the regulation, when taking national measures to implement the Convention.

ANNEX

Council and Commission Joint Statement

1. The Council and the Commission recognise that damages caused in the context of air carriage may possibly result in liability both under the Montreal Convention or Regulation (EC) N° 2027/97 and the Package Tour Directive.

In order to provide a consistent liability regime, the Council and the Commission will consider the need for clarification of this issue, in advance of the entry into force of the Montreal Convention and Regulation (EC) N° 2027/97 as amended, if necessary through a revision of the Package Tour Directive.

2. The Council and the Commission further recognise that Regulation (EC) N° 2027/97 does not cover all carriers that are liable under the Montreal Convention and whose principal place of business is within the Community.

In respect to these carriers it is desirable that Member States take appropriate measures by implementing the Montreal Convention to provide for an equally high standard of passenger protection, in particular standards of liability.