CCI\MISSION OF THE EUROPEAN CCI\MUNITIES 
COM(92) 434 final 
Brussels. 21 October 1992 
Communication from the Commission to the Counci I 
AIR TRANSPORT RELATIONS 
WITH 
THIRD COUNTRIES 
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INTRODUCTION 
I. Description of the Existing Situation Page 
3 
Existing Economic Situation 4 
BIiaterai Agreements 5 
BIiaterai Agreements and Community Law 6 
Existing Community Relations with Third Countries 8 
11. DevelOl)llent of a Comnlunlty Polley 
Community and national Interest 
The alms of a Community Polley 
Requirements of the Single Market and 
Implementation of Treaty principles 
111. Establlshlllent of Procedures 
Responslblllty for Negotiations 
Negotiations at Community Level 
Negotiations at Member State Level 
coordination 
Negotiating directives 
The Allocation Procedure 
Cont lnul ty 
Confldentlallty 
Documentation 
IV. Decisions 
Annex Proposal from the Commission 10 
13 
17 
21 
23 
24 
24 
26 
26 
28 
28 
28 
29 
30 
Annex 11 
Annex 111 
Annex IV 
Annex V The procedure step by step 46 
Statistical Tabulations -General 49 
The EC/US Market -A statistical overview 56 
Agreement on Air transport 84 

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AIR TRANSPORT RELATIONS WITH THIRD COUNTRIES 
INJAOQUCJION 
1. In February 1990 the Commission put forward a proposal for a Council 
Decision on a consultation and authorization procedure for 
agreements concerning commercial aviation relations between Member 
States and third countrles< 1> which untll now has not been 
discussed by the Council. The main consideration for putting 
forward this proposal was that with the gradual development of the 
Internal market, the Community wlll also externally have to act as 
one. Furthermore, It Is necessary to take account of the special 
characteristics of the aviation sector: considerable goverment 
Influence, very frequent negotiations. protectionism, State­
ownership of air carriers, etc. 
2. The Council of Ministers adopted the third and final air transport 
pol Icy package at its meeting of 22 and 23 June 1992(2), and 
consequently the single market for aviation will be a reality as 
from 1 January 1993. The fact that some fundamental Community 
principles are endangered by the present situation forces the 
Community to consider relations with third countries without delay. 
The establishment of the single market Is likely to Improve the 
competitive position of Community air carriers In relation to some 
of the very efficient carriers of third countries. It will be 
necessary, however, to complement the Internal market with a 
Community pol Icy for the relations with third countries to allow 
them to make full use of the new commercial opportunities. 
In order to facilitate the discussions In the Council and after 
consultations with experts In this area. the Commission has decided 
to put forward an additional communication which sets out In some 
detail how an external aviation pol Icy can be developed. 
3. The following three areas are addressed In this Communication and 
appropriate proposals for Council decisions are made: 
I. Description of the existing situation 
II. Development of a Community policy 
111. Establishment of transitional procedures 
(1) 5080/90 AER 16 C0M(90) 17 final 
(2) OJ No L 240, 24.8.1992, p. 1. 
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I • DESCRIPTION OF THE EXISTING SITUATION 
Existing econo11lc situation 
4. For the majority of Community air carriers, operations to non­
European countries account for more than 501 of their total 
operations. Table A and Table E of Annex Ill detail for the main EC 
flag carriers the relative Importance of different geographical 
markets In number of passengers and In revenue passenger kilometer 
respectively (RPK). Not surprlslngly these tables also demonstrate 
that the North Atlantic Is the most significant of the markets In 
terms of traffic, a fact also reflected In Table B which 
addltlonally shows the major significance of traffic with the EFTA 
States. For US airlines, domestic air services account for some 70X 
of their total operations, while In the case of the AEA alrl Ines 
their Intra-Community services represent less than 30X of their 
total operations. This demonstrates the relative importance of non­
EC markets to EC carriers. 
5. To a large extent the same picture emerges from the ICAO statistics 
which Include all Community air carriers. However, the EC and EFTA 
gain In Importance because the addltlonal Community air carriers are 
mainly domestic or short haul. From table B It would seem that It 
Is In particular France, Germany, Italy, Netherlands, Spain and the 
UK which have more than 20X of International activity going beyond 
Europe. However, in case RPK Is taken Into account, the 
Importance of the International sector Increases considerably (Table 
E). 
6. It Is also Interesting when looking at table C that while the North 
Atlantic market is important for all Member States (except maybe 
Luxembourg) other International markets vary In Importance for 
Individual Member States. South America Is Important for Spain and 
Portugal, the Middle East for France and Italy, the Far East for 
quite a few Member States while Austral la etc Is Important for 
Greece and UK. 
7. Table D summarises traffic growth by long-haul market since 1980 as 
well as forecasting traffic to the year 2000. This table shows that 
the North Atlantic market will continue to be Important with a high 
growth rate, while Asia will grow in significance. In view of the 
Influence of the North Atlantic market on the total operations of 
Community air carriers a separate analysis of the US/EC situation is 
attached (Annex IV)·which shows imbalances in opportunities for the 
respective carriers, but also hfghllghts the relative success that 
EC carriers have had until now In spite of the Imbalances. 
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a. In order to see whether this encouraging situation will continue the 
Commission commissioned an economic study on the competitiveness of 
the eommunlty alrl ine lndustryC1). 
The study Indicates Increasing competitive pressure from third 
country air carriers on markets of prime Interest to the Community 
(North Atlantic and Asia). The analysis of the technical, economic, 
flnanclal and market strength-related performance of a sample of 40 
European, North-American and Asian air carriers led to the fol lowing 
key results: 
-European air carriers do relatively well In the area of technical 
operating efficiency, but many of them have a low performance In 
relation to labour efficiency 
-European air carriers have relatively high yields compared to 
their US competitors 
-There is room for improving the overall cost efficiency of the 
Community's alrl lne Industry 
The financial stabi I lty of the Community's alrl ine industry is, 
on average, better than that of US competitors. 
9. From the study It can be concluded that the high yield performance 
of the Community's airline Industry has -despite some obvious 
problems In the area of operating costs -until recently ensured a 
reasonable degree of financial and economic stab II lty. However, It 
Is also Indicated by the study that basic changes In the competitive 
situation are underway In the form of llberallzatlon and 
globalization of the Industry, which wlll reshape the market 
structure on the North-Atlantic and on other markets. In this 
regard, according to AVMARK, a fundamental reorientation of the 
International regulatory framework may be needed and It wl I I have to 
be analysed carefully what new measures are needed to meet the 
changing environment In civil aviation. 
BIiaterai agre81118nts 
10. On the basis of the Chicago convention (1944) the worldwide 
regulatory framework for civil aviation has developed by bilateral 
Air Services Agreements (ASA's). These agreements regulate the 
market conditions under which Community air carriers are able to 
operate services to third countries. At present each Member State 
has a considerable number of ASA's with third countries. On average 
there are some 60-70 per Member State. These agreements do not 
differ fundamentally in form. Their main body contains the general 
prlnclples, whereas one or more annexes spell out the detal led 
provisions I.a. the routes which may be operated, the capacity which 
can be used and the fifth freedom rights that are available. 
(1) AVMARK Inc "The Competitiveness of the European Community's air 
transport industry", 28 February 1992. 
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Often there are (Confldentlal) Memoranda of Understanding (MOU's) or 
exchanges of letters which deal with such matters aa compensations, 
the obllgatlon for carriers to conclude cooperation agreements, 
marketing provisions, etc. Some ASA'a remain unchanged for years, 
but often changes In the market force airlines to adjust their 
operating schedules, which means that the annexes or MOU'a may have 
to be renegotiated freQuently. In fact some Member States have quite 
a large number of negotiations per year. 
11. Due to the level of detail In which bl lateral agreements regulate 
the market, these agreements determine to a large extent the 
commercial opportunities of airlines. Depending on the pol Icy of the 
governments In Question, there are very liberal and flexible 
agreements, but there are also very restrictive agreements which 
llmlt the air carriers In their operations and In fact eliminate 
competition on particular routes nearly completely. An example of a 
recently concluded traditional ASA la shown In Annex v. It Is also 
clear that Member States do not follow the same pol Icy regarding 
Individual third countries. As an example an overview of the 
agreements with the United States Is shown In Table 1<1>. 
12. The most recent agreement between the United Kingdom and the United 
States Is Interesting In this respect. In this agreement the UK has 
anticipated the completion of the Internal market by Introducing 
possibilities for UK air carriers to operate from other Member 
States to the US (7th freedom). Thia la probably a novelty In ASA's. 
However, these traffic rights can only be exercised with the 
agreement of the other Member State or when community rules have 
been established. 
BIiaterai Agreeftl8nts and Community Law 
13. The majority of existing ASA's contain elements which are not 
compatible with or potentially Infringe community law, for example 
as seen below with respect to the competition rules, the right of 
establishment and computer reservation systems. 
competition rules 
14. Many of the existing bl lateral agreements contain provisions which 
are not In line with the competition rules of the Treaty. They 
encourage or require carriers to agree on pricing, schedules, 
capacity and revenue sharing. Member States participating In ASAs 
with such provisions would violate their duties under.Articles 5 and 
85 of the EEC TreatyC2). 
(1) The table reflects the situation as It existed In 1991. 
Developments that have taken place since are not Inserted (e.g. 
the "open skies" agreement NL-US). 
(2) Court of Justice, Judgment of 11 April 1989 In case 66/86 (Ahmed 
Saeed). 
TABLE I US/E\R)PE BILATERALS 
De1lgnatlon (Maxl11111 No of 
carrier•) Agreed gat~• for Beyond rl9hh 
Country Pricing us Europe Capacity US carrlen European us European Other ltt111a 
In Europe In US 
France Country of 8 5 Te111porarl ly 5 10 20+ 1 
origin rHtrlcted• (fra11 Parle, 
Nice, Lyon) 
Ge1111Gny Country of 8 1 Open Open 12 Open Open 
origin (plua 2 ouhlde 
bl lateral) 
Italy Country of 5 1 3 12 18 - Cargo I• origin frequency I I.- alngle 
lted to dally. dHlgnatlon 
Netherland• Double Uni lmlted Uni lmlted Open Open 8 Open -Dl1opproval (plu1 3 ouhlde 
bl lateral) ..._, 
Scandinavia Double 4 1 Open 5 8 Open 1 No change of 
approval (fran gauge language 
Anchorage) for US f lfth 
freedom r I gh ta 
to Scandinavia 
Spain Double 8 1 Open 4 10 23 17 ' approval (f ram (from San 
Madrid, 
Barcelona) Juan, Mianl) 
United Double 7 2 RHtricted 18 25 27 7+ 
Kingdom approval (1 lmlted ( I imlted route by ( incl. London ace••• route by route by route terr I torle1) limited by 
route) route) airport: only 
2 US carrier• 
al lowed at 
Heathrow. 
•Te111porarlly reatrlcted for addltlonal deelgnation on apeclflc rout•• for US carrier until Nov•ber 1992. 
Source: Mainly Airline Bu1lne11 -Novanber 1991 
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Nat1ona11ty clauses 
15. According to traditional bl lateral agreements a Contracting Party 
has the right to refuse to accept the designation of an airline or 
airlines from the other Contracting Party in any case where it is 
not satisfied that the airline or alrllnes are "substantially owned 
and effectively control led" by nationals of that Contracting Party. 
However, the Treaty rules on right of establishment create the right 
for eommunlty citizens to establish themselves anywhere In the 
eommunlty while otherwise respecting the rules of the Member States 
in question. This prlnclple has speclflcally been confirmed In the 
third package< 1> of the Community's air transport pol Icy. This 
means that a Community air carrier may well be controlled by another 
nationality than that of the Member State In which the air carrier 
Is registered. such an air carrier has to be treated as any other 
air carrier established in that Member State for which the majority 
of shares are owned by Its citizens and cannot be lawfully excluded 
from having the possibll lty to operate to third countries. These 
clauses in the ASAs are therefore contrary to Community law, since 
they discriminate on the basis of nationality and undermine 
effectively the right of establishment. Although these Illegalities 
have not created any apparent problems so far, It Is clear that with 
the third package which specifically envisages the creation of non­
national air carriers, the situation may change. Indications already 
exist that these rights will be used. 
Computer Reservation Systems 
16. There are Member States that have accepted clauses In their 
bilateral agreements with the United States concerning non­
discrimination within CRS displays and discrimination among CRS 
suppliers. Member States are not competent bl laterally to accept 
obligations which furthermore may Infringe on Community law. In fact 
some of the clauses concerned are not compatible with the code of 
conduct on CRSs and thus create a serious legal problem especially 
If discrimination has been accepted. 
Existing Colnnunlty relations with third countries 
17. Already today there are agreements and negotiations between the 
Community and third countries for the aviation sector: 
The Community has concluded an agreement on civil aviation with 
Norway and Sweden<2>. This agreement extends the scope of the 
Community air transport legislation to these countries, Including 
the competition rules. 
(1) Article 4 of Counci I Regulation (EEC) No 2407/92 of 23 July 1992 on 
Llcencing of Air Carriers (OJ No L 240, 24.7.1992). 
(2) OJ No L 200/20, 22.6.1992. 
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The draft agreement between the Conlnunlty and the EFTA States, the 
European Economic Area agreement CEEA), Includes aviation. When the 
agreement enters into force on 1-1-1993, as envisaged, the Community 
leglslatlon concerning clvll aviation will also apply In the EFTA 
countries. This wl I I make the separate agreement with Norway and 
Sweden obsolete. 
The NEuropean agreementsN concluded between the community and 
Poland, Hungary and Czechoslovakia envisage the conclusion of 
agreements concerning the conditions of access to markets and the 
supply of services In conformity with the Community's common 
transport pol Icy, with a view to assuring a coordinated development 
of transport between the Parties adapted to their reciprocal 
commercial needs. 
The development of the annex on air transport In the framework of 
the General Agreement on Trade In Services (GATS) has resulted In a 
Community approach to the aviation sector through the 113 
committee. However, the proposed air annex to date excludes traffic 
rights and associated matters from the scope of GATS for at least 
five years. 
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11. QEVEt,OPNENJ OF A COMMUNITY POLICY 
national Interest 
18. In the development of a Community policy due account has to be given 
to the potential conflict between on the one hand the Interests of 
the eommunlty as a whole and on the other hand the national 
Interests of Member States. The creation of the Internal market 
gives new opportunities to Community air carriers, but their 
competitive position could be even further enhanced If, with regard 
to third countries, the Community would take full advantage of Its 
changed position and Instead of being divided, would speak with one 
voice. It cannot be denied and It has been experienced In other 
economic areas that the Community, as one of the most Important 
trading blocks in the world, effectively creates additional 
opportunities to those created by a national approach. It would be a 
serious mistake if for whatever reasons common action is delayed and 
the competition from third countries Is given a chance to take 
further advantage of the present divided situation. 
19. As a consequence of the very large influence of governments on the 
commercial opportunities of air carriers, Community Member States 
are In direct competition with each other In their struggle to get 
better access to markets for their air carriers. This can lead to 
situations where Member States may forget the broader perspective of 
eommunlty interest and agreements are concluded which sometimes only 
meet the short-term interests of an Individual Member State or of 
Its carriers, Irrespective of the costs for the Community as a 
whole. The "laissez-faire" approach of the US for example may be 
tempting to certain individual States but If taken up In an 
uncoordinated manner the results may not be In the common Interest. 
20. The following data demonstrate the equilibrium between the economic 
Importance of the relevant markets (Europe, U.S.) on the one side 
and the disequilibrium in relation to traffic rights actually 
obtained on the basis of the fragmented negotiating approach of 
Member States on the other side. 
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EC/US MARKET COMPARISON -August 1991 
A. Traffic Data (actual scheduled services) 
E .c. carr lers U.S. carr lers 
American gateways 22 54 
(In total 55) 
E.C. gateways 27 22 
(In total 28) 
Cabotage rights In the U.S. VS 
5th freedom traffic rights - 20 
Within the E.C. 
5th freedom rights (excluding 10 33 
lntra-E.C. operations) 
Number of routes operated 97 139* 
between the U.S. and the E.C. 
(*) 276 advertised operations with 122 city pairs served under one 
flight number but with an aircraft charge. 
Source AEA 
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e. Alrllne Performance Data (1990) 
E .C. carr I era U.S. carr lers 
Total Number of air carriers 76 2-4 
operating Jet aircraft 
Passengers carried (1,000) 95,611 373,-478 
(lntra-E.C./U.S. domestlc)(1) 
RPKs (bllllon) (2) -417.2 759.8 
RPKs for Intra-European and US 66.9 -499.0 
domestic traffic (billion) (3) 
Financial profit/loss (0.8) ( 1. 7) 
(bll I Ion U.S.$) (1) 
Net profit/loss (1) (2.1) C 1. 3) 
(1) AEA carriers 
(2) All EC carriers Including charters and regional airlines 
(3) E.C. AEA-member carriers 
c. Economic Data 
E.C. U.S. 
Population 327,136,500 2-46,329,000 
GDP at current prices 
and current exchange rates -4,-406.9 '4,658.0 
( b I I I I on ECU) 
GDP at market prices per 13, -421 18,910 
capita (ECU) 
Imports from U.S. 8-4 -
Imports from E.C. - 78 
Source Eurostat -28th Edition 1991 
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21. It Is worth noting that In recent months It has become clear that 
the development of the Internal market has given a stimulus to new 
negotiations since many third countries are Interested In obtaining 
Improved access to the Community before 1993. In return they are 
prepared to grant additional rights to Member States' air carriers. 
Thia may lead to a sell Ing-off of traffic rights valuable to the 
Community as a whole. For this reason It Is necessary and urgent 
that a framework for Community coordination and negotiation Is 
established quickly so that the balance of Interests can be ensured. 
The al118 of a Colllllunlty pol Icy 
22. Each bl lateral relationship Is different depending on the 
competitive situation of the air carriers concerned and on the 
policies and legislations in force In the third country. Therefore a 
detailed examination of Individual relationships -In close 
cooperation with Member States and with Interested parties -must be 
the basis for developing specific objectives, priorities and 
directives for actual negotiations. What Is required without delay 
Is the development of adequate procedures for determining Community 
priorities for the negotiations, which take account of the 
specificities of the relationships concerned. 
23. Some components of a general community pol Icy can already be 
Identified. Clearly such a policy will have to be In line with the 
objectives of the Treaty of Rome. This wl II Imply ensuring the 
proper functioning of the Internal market and Implement fut ly the 
principles of the right of establishment and the free provision of 
services, taking into account the need to avoid predatory behaviour 
(para 36-49). The main legal concerns as seen in the fol lowing 
paragraphs exist in respect of the following areas: 
-Competition rules 
-Nationality clauses and ownership 
-Non-Discriminatory allocation of traffic rights. 
24. The general economic policy objectives which were set out In the 
explanatory memorandum to the proposals for the third phaseC1) are 
relevant as wel I as the aims to: 
A. promote the interests of Community air carriers and their 
workers; 
B. promote the Interests of consumers; 
C. promote the interests of airports (regions); 
(1) COM(91) 275 final of 18 September 1991. 
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25. Of course Community policy cannot develop in isolation, as third 
countries have their pollcles and leglalatlon which wlll have to be 
taken Into account. Reciprocity has always been a leading 
prlnclple In aviation negotiations and the Community wlll usually 
have to negotiate on that basis. 
A. The Interests of Community air carriers 
26. The establishment of the common Internal aviation market should 
Improve the situation for Community air carriers because they can 
take advantage of the benefits of a large home-market, they can 
freely schedule their services, adjust capacity and offer tariffs In 
the market according to their own commercial Judgement. Furthermore, 
they will be able to establish themselves anywhere In the Community 
according to harmonised llcenclng criteria. This new flexlblllty 
will stimulate competition, Improve cost efficiency and yield 
management and should eventually make community air carriers more 
competitive vis-a-vis third country competitors. 
27. However, air carriers will need some time to optimise their networks 
and the structure of the industry needs to adjust to the new 
situation. After this Initial phase they should be able to operate 
on a more competitive basis. Operational barriers, which are 
created by agreements with third countries, would then be a 
hindrance to this development. These restrictions should 
accordingly, be reconsidered as their elimination would be In the 
Interest of the Community. A cautious and gradual approach should 
ensure that the restructuring of the market can take place in a 
balanced way. 
28. It is worth noting that the bilateral agreements between Member 
States and third countries are not the only factors which determine 
the competitive situation. Strong worldwide competition exists for 
example between EC and us air carriers. The fact that the bl lateral 
agreement between e.g. the US and Japan Is less restrictive than the 
agreements between Member States and Japan means that the us 
carriers can develop a much better position In Japan and thereby in 
the global competition. As a consequence Community carriers become 
less attractive for a number of business passengers. 
29. This example shows that It Is Important for Community air carriers 
engaged In global competition to be able to operate under the best 
possible regulatory regime. In fact, if other governments, due to 
their strong negotiating position, are able to secure a better more 
flexible regime, Community carriers may loose market share. In 
order to be competitive Community air carriers should therefore 
benefit from at least as flexible agreements as their competitors 
have. 
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30. Moat bl lateral agreements llmlt the number of carriers to be 
designated, the number of frequencies to be operated, the number of 
seats, etc. The more efficient air carriers from the COINllunlty or 
third countries are punished for their efficiency by obligatory 
"commercial agreements" to be concluded between the air carriers of 
both parties. Whenever a new air carrier wants to enter the market 
or If air carriers want more frequencies or to Introduce different 
fare levels, this will have to be negotiated. In such agreements 
not market demand and consumer Interest, but often the specific, 
possibly weak competitive position of the air carrier of one party 
la decisive for the number, sort and quality of operations. These 
practices are often against the Interests of Community carriers as 
they make It difficult for them to use their full economic potential 
on a world-wide scale. 
31. When 5th Freedom opportunities are granted to third countries 
careful consideration should be given to the effects this may have 
on other Member States or air carriers. An analysis of 5th freedom 
opportunities available to Japan Is detailed below which 
demonstrates the opportunities available through European points for 
Japanese carriers. This quite clearly affects the actual and 
potential operations of Community air carriers on these routes. 
TABLE 2 FIFTH FREEDOM RIGHTS FOR JAPANESE AIR CARRIERS IN THE Ee(*) 
Pursuant to bilateral 
agreement between Japan 
and 
U.K. 
(London) 
France 
(Par Is) 
Germany 
(Frankfurt) 
(DClsseldorf) 
Denmark 
(Copenhagen) 
The Netherlands 
(Amsterdam) 
Italy 
(Rome) 
Spain 
(Madrid) 
(*) Situation 1991 Rights granted 
Paris, Copenhagen 
plus 3 unspecified points 
London, points In Germany and 
Scandinavia, Amsterdam, plus 
one unspecified point 
Paris, Amsterdam plus 
3 unspecified points 
London, Paris, Frankfurt, 
DClsseldorf, Amsterdam, Rome, 
Madrid 
London, Paris, points In 
Germany, Copenhagen, Rome, 
Madrid 
3 unspecified points 
London, Paris, Frankfurt 
Copenhagen, Amsterdam, Rome 
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32. Many community air carriers have relatively smal I networks. In 
order, for them, to be able to compete and offer the services 
requested by customers they require good and efficient interline 
facil I ties. This al lows them to issue tickets to destinations they 
do not serve and It gives passengers the posslbllltles to reroute or 
change flights without extra costs. The existing Interline system, 
therefore, should be maintained within the limits set by the 
competition rules. 
33. A COmmunlty policy for relations with third countries should take 
account of the interests of .All Community carriers. In principle, 
this means that whenever commercially possible all Interested 
community carriers shall be allowed to operate. Undue I Imitations In 
routings, capacity, designation and fares should be avoided and In 
cases where a selection has to be made procedures must be strictly 
non-discriminatory (see paragraphs 43-47 and 65-71). 
B. The Interests of air transport users 
34. Air transport users are generally Interested In safe, reliable and 
frequent high Qua I ity air services at a reasonable price from an 
airport in the vicinity of where they I Ive to an airport close to 
their destination. It is normally of less Interest to them whether 
the air carrier offering the service Is established In their own 
country or in another as long as their requirements are met. User 
Interests are best served in a reasonably liberal and competitive 
environment with safeguards to ensure the proper functioning of the 
market. Air carriers should have the necessary flexibility to 
respond to changes in market demand and should not be hampered by 
regulations which aim to protect less competitive air carriers. 
In particular business travellers have emphasized that Inter I lnlng 
Is Imperative. 
c. The Interests of airports creglons> 
35. The economic development of a region depends often on access to air 
transport. Many regions and their airports consider that 
traditionally the Interests of air carriers and in particular of 
"national carriers" have dominated negotiations on traffic rights. 
This has led to a situation where traffic has been concentrated on 
relatively few gateways leading to congestion and environmental 
problems at those airports and regions while other regions suffer 
from a lack of adeQuate air I inks. The regions and airports are 
therefore looking for a more I lberal market access policy with 
greater opportunities directly to regional airports. That does not 
mean that the differences In market strength between air carriers 
should be ignored, because that might not be In the long term 
Interest of the travel I Ing publ le and of airports. A balanced but 
liberal pol Icy Is advocated by these parties. 
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Requirements of the Slngle arket and lapl-ntatlon of Treaty 
prlnclples 
36. One of the fundamental principles for the single market is that 
Member States should not deliberately or Inadvertently act against 
the Interests of the Community or each other. It is important to 
note that negotiations by one Member State will practically always 
affect the Interests of one or more other Member States. Additional 
opportunities for one carrier may directly Influence the market and 
consequently the opportunities for carriers from other Member States 
operating in the same or neighbouring markets. Implementation of 
the basic principle that Member States should not harm each other's 
Interests unduly requires therefore a careful coordination at 
Community level to Identify and balance the different Interests 
Involved. 
Competition rules 
37. An external aviation pol icy must clearly Include the external 
aspects of the competition rules. At present the Commission has not 
been enabled to implement community competition pol Icy In respect of 
routes to and from third countrlesC1). 
Certain forms of cooperation between air carriers may restrict 
competition but bring considerable benefits to alrl Ines and air 
transport users alike. This has prompted the Commission to give an 
exemption under Article 85(3) of the Treaty to e.g. schedule 
coordination, Joint operations, tariff coordination, slot allocation 
and Joint computer reservation systems In respect of Intra-community 
transport under the conditions laid down In the applicable 
regulations. However, the Commission Is not in a position to grant 
an exemption to these practices in respect of transport to third 
countries. Such common worldwide practices as e.g. IATA tariff 
coordination and slot allocation are consequently vulnerable to 
challenge under the EEC competition rules. Member States approving 
tariffs arising from tariff coordination also violate their 
obligations under Article 5 of the EEC Treaty. The Commission 
likewise cannot exempt under Article 85(3) Joint operations, revenue 
pools, schedule coordination etc. which fall within Article 85. 
Proper enforcement of the competition rules In respect of air 
transport to third countries ls therefore urgently required. The 
Commission has made proposals to give It the normal powers of fact­
finding, exemption of useful cooperation and termination of 
lnfrlngments which it has In other fields. The Councl I ls requested 
to give these proposals urgent consideration. In order to remove 
legal uncertainty and to ensure the benefit of the appl lcatlon of 
the competition rules, the Commission would have no alternative, In 
the absence of proper enforcement powers, but to make usi' of Its 
residual powers under Article 89 of the EEC Treaty. 
(1) court of Justice, Judgment of 11 April 1989 In Case 66/86 (Ahmed 
Saeed). 
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Nationality clauses and ownership 
38. A subject that also requires attention Is the nationality clauses In 
bl lateral agreements. It has already been Indicated In para 15 that 
most bilateral agreements contain discriminatory designation 
clauses. 
39. The Commission has already Informed Member States that nationality 
clauses In bilateral agreements with third countries wlll have to be 
changed. It should be recognised, however, that an Immediate 
request for changing or deleting nationality clauses In existing 
ASA's may not be readily granted In an Individual negotiation. In 
the I lght of such problems the method wlll have to be decided after 
careful consultation. 
40. In order to ensure a harmonious and gradual Introduction of a new 
framework, it wi I I be necessary to develop an acceptable 
transitional approach similar to article 234 of the Treaty whereby 
the Commission and the Member States will temporarily tolerate 
existing bl lateral agreements. However, Member States are under an 
obligation to take al I appropriate steps to eliminate the 
lncompatlbl I I ties, such as the national lty clauses, established In 
agreements with third countries concluded before the entry Into 
force of the Treaty. 
41. It may only be possible to tolerate agreements concluded after 1958 
when Member States agree on an appropriate consultation and 
authorization procedure whereby on a case by case basis steps are 
developed to remedy the situation, either Individually or by the 
adoption of a common attitude. The Commission recognizes that In 
some cases it might be Impossible under reasonable conditions to 
make the necessary amendments to the nationality clauses and other 
provisions contrary to Community law. During a reasonable period of 
time, the Commission wi I I accept such cases as unavoidable In a 
transitional situation. 
42. As to future agreements, It may be necessary to go beyond 
nationality clauses as referred to In paragraph 15 and to reconsider 
existing ownership I imitations. The air transport Industry Is 
becoming more and more global in nature. It Is therefore Important 
for air carriers to be able to respond appropriately to competitive 
challenges and/or changes in the market. In a worldwide competition 
It might not be sufficient to look only for direct market access 
poss lb II I ties but it could be more effective to invest in local 
expertise. Several examples of this already exist. Risk capital 
might also be more readily available abroad than In the local 
market. For these reasons it might well be useful to examine the 
possibl Ii ties in the longer term of opening up for such investment 
opportunities. 
-19 -
In fact the Community already proposed more flexibility in this area 
In the context of the General Agreements on Trade in Services (GATS) 
but unfortunately not many countries were sufficiently Interested. 
Individual Member States are bound by the obllgation< 1> only to 
license air carriers which are owned and control led by Community 
persons. However, a provision has been Included in the same article 
of the third package which expressly foresees the possibility of 
Community agreements in this respect. 
Non discriminatory al location of traffic rights 
43. The problem of non discriminatory allocation of traffic rights 
arises when the number of Community carriers to be designated Is 
llmlted and more carriers are Interested to operate on the route, or 
when the capacity is I imited and Insufficient to meet the 
requirements of Interested Convnunlty carriers. 
44. Already today some Member States which have more than one carrier 
established In their territory have procedures for the allocation of 
acquired rights. Other Member States and the Community wil I very 
soon have to develop non-discriminatory procedures because with the 
entry into force of the third package the rights can no longer be 
allocated automatically to the "national carrier", but will have to 
be allocated among Community carriers. 
45. It has been suggested that in such cases the routes should be sold 
to the highest bidder. This solution does not seem to meet the aims 
of Convnunlty pol icy because it leads to higher costs for air 
carriers and consequently for passengers and it increases barriers 
for new entrants. 
46. Another solution, which Is practiced in the Community In other 
economic sectors, is the establ lshment of a quota system. New routes 
would be allocated to Community carriers on the basis of a simple 
quota based on eg. their present market share. This would lead to a 
rigid system with very I ittle posslbllltles for newly established 
air carriers to secure a reasonable market share and It would 
basically be against the freedom to provide services. The best way 
forward would seem to be a qualitative selection procedure because 
this allows the decision making body to take account of a range of 
criteria and creates the necessary flexibility to consider each 
situation on Its merits. An absolute requirement Is that non­
discrimination Is ensured. such a procedure Is further outlined in 
paragraphs 65-71. 
(1) See footnote (2) on page 6. 
-20 -
47. Any selection procedure wll I Inevitably lead to problems for one or 
more air carriers. Bilateral agreements which are based on liberal 
principles wl 11 therefore be preferable as long as fair competition 
Is ensured. However, there Is no doubt that designation 
posslbl II ties wl I I be I lmlted In a number of bilateral relationships 
and therefore a mechanism for the allocation of traffic rights has 
to be developed. 
48. When considering the development of a Community policy, it will also 
be Important to look at the Interests non-eommunlty carriers have In 
operating services to Europe. For an air carrier offering long-haul 
International services Europe Is a very Important market, not only 
for point-to-point Journeys, but in the context of its total 
network. 
49. The Interest of air carriers from other hemispheres would probably 
be to hub in Europe and to be able to use their own services to get 
people to their final destinations or between the main cities of 
Europe. As there has been no common external pol Icy regarding third 
country air carriers flying Into the European market, third states 
have gained considerable fifth-freedom rights through bilateral 
negotiations at national level. Consequently, they can carry their 
own passengers between European points and at the same time compete 
with European air carriers for other passengers on those routes. 
Many have also obtained stop-over rights with change of gauge which 
allows them to use more efficient aircraft on thinner routes by 
combining two destinations. Some third country air carriers have 
even been able to develop hub and spoke networks In the COmmunity. 
Unfortunately adequate reciprocity Is sometimes lacking. This Is one 
of the reasons why the Commission has always emphasized the fifth 
freedom aspects of bi lateral negotiations (see Para 31). 
-21 -
Ill. ESJABLIStNENJ OF PROCEDURES 
Responslblllty for negotiations 
50. On the basis of the Treaty and of the case law of the Court of 
Justice the Community has In any case exclusive competence for 
concluding bl lateral air services agreements deal Ing In particular 
with market access, capacity, tariffs and related matters. 
51. The Convnlsslon submitted In 1990 to the Councll a proposal for a 
procedure to deal with aviation relations with third countries. This 
proposal Is based on and would replace as far as aviation Is 
concerned Counci I Decision 69/494/EEC. This Decision establishes a 
notification and consultation procedure at Convnunlty level and 
provides for Community negotiations. As long as Counci I Decision 
69/494/EEC has not been replaced by a Decision on external aviation 
relations, it should be applied. Member States have been reminded of 
their obligations under Community law by letters of 1/3/90 and 
2/7/90. 
52. The procedures in Decision 69/494/EEC have not been respected by 
Member States. Several new bl lateral agreements also Including fifth 
freedom rights have been concluded, or existing agreements 
thoroughly modified, without any consultation or coordination at 
Community level. The Commission has so far refrained from starting 
Infringement proceedings, in order to allow for open discussions on 
the development of a commonly agreed approach to the aviation 
relations with third countries. However, In case that no progress 
can be made in this area by the end of 1992 the Commission will be 
obliged to take up its responslbllitles without further delay. 
53. The starting point for the development of transitional procedures 
should be that the Community Is a priori responsible for the 
formulation of an external aviation relations pol Icy and there can 
be no negotiations with third countries on these matters without 
Community Involvement. However, the Commission recognises that under 
certain circumstances within the I lmlts of the pol Icy developed by 
the Community and having considered compatlbl llty with Community law 
In many instances satisfactory results may be achieved during a 
transitional period when Member States are authorized by the Council 
to negotiate bilateral agreements with third countries. 
-22 -
54. In the light of the considerations In chapter II and the above 
paragraphs a framework which Is In llne with the requirements of the 
Treaty must be established. Within such a framework the Community 
should In principle take responsibility for all agreements but then 
In a number of Instances authorize the Member State concerned to 
negotiate on condition that Community coordination wlll take place 
In order to safeguard the Interests of other Member States and of 
the eommunlty as a whole. In this context, the Commission recognizes 
that Its proposal of 1990 needs to be modified. A proposal for 
amendments is therefore annexed to this document. The procedures 
which are proposed permit 
-Community negotiations or 
lndlvldual Member State negotiation. 
Such procedures are set out In detal I In annex I I. The key question 
le to decide which facts are necessary for the Commission to propose 
and the Councl I to decide on the option which may lead to the best 
possible result. 
55. Negotiations wi I I be conducted at Community level or, normally on a 
case by case basis a Member State may be authorized by the Council 
to conduct the negotiations. Factors which would have to be 
considered are whether the third country asks for a Community 
negotiation, whether special problems of Community interests exist 
(CRS, foreign ownership, tariffs, competition rules etc.), or 
whether there are other pertinent factors. Such sJtuatlons will 
have to be handled in a pragmatic way. 
56. A framework which includes the possibility for Member States to 
negotiate Individually will have to avoid legal uncertainty 
regarding existing rights and the allocation of responslblllty In 
the Community. Already today many third countries are concerned that 
the creation of the internal market may affect their traffic rights 
to, from and within the Community and there Is uncertainty about the 
respective competences of the Community and of Member States. It Is 
Important that the exercise of Community competence either by the 
Community or by Member States guarantees the stablllty of the 
International regulatory system. It wlll be necessary, therefore, to 
create a clear and unambiguous framework for all aviation relations 
with third countries which will take effect on January 1993. 
Agreements concluded between Member States and third countries 
before that date wi I I be respected by the Community, provided they 
are In I lne with the requirements of Community policy. 
-23 -
Negotiations at Community level 
57. several areas can be Identified where the Community should assume 
Its responslbi Ii ties without delay. 
a. Action at Community level Is necessary In situations where 
negotiations on Community level would give better economic 
results than negotiations at Member State level. 
It wi I I, of course, be dlfflcult to make this Judgement 
beforehand but the strength of the negotiating partner, the 
existing balance of traffic rights, the size of the market and 
the overall trade relatlonshlp of the Community with that partner 
can be used as indicators for the analysis. In this respect the 
fact that some Member States, In order to obtain even a small 
benefit for their air carriers, negotiate away traffic rights 
which directly affect the competitive position of other Convnunity 
air carriers is an argument In favour of negotiations on 
Community level. The United States and possibly Japan are the 
main examples of third countries which fal I within this category. 
b. Action at Community level Is necessary where the lnsistance on 
acceptance of Community principles such as non-discrimination on 
the grounds of nationality would place an Individual Member State 
in an unacceptable situation. 
c. The Community is developing close relations with countries In 
Eastern Europe. For the development of these relations It Is 
Important that an effective air transport system Is established 
which can meet the expected Increase In market demand. To ensure 
a fair balance of opportunities In the European air transport 
market and to avoid a widening gap between the Convnunlty and the 
rest of Europe which I imlts the opportunities of the air lines to 
develop the European market, a common regulatory framework for 
the whole of Europe should be pursued. An extension of the 
Community regulatory framework which has been established with 
the EFTA countries, should also be considered as a follow up to 
the association agreements with the countries In Eastern Europe. 
d. In relation to the successor States of the Soviet Union and 
· Slovenia, Croatia and Bosnla-Herzegovlnla the Community Is 
looking for a close relationship. The fact that in many cases new 
bl lateral air transport agreements will have to be concluded with 
these countries offers a unique opportunity to establish the 
relationship in a Community-wide agreement which respects 
Community law and takes into account the specific circumstances 
that exist. 
-24 -
e. Air transport is becoming more and more global In nature. 
conseQuently, it Is In the Joint Interest of air carriers and 
consumers to reconsider the principles of the worldwide 
regulatory framework of aviation. The Community has the necessary 
weight to play a leading role In developments towards liberal 
multilateral agreements, possibly between groupings of countries. 
f. Not only In Europe, but also elsewhere In the world trading 
blocks are being developed. In cases where third countries 
negotiate as a block also the Community should negotiate as one. 
g. Even If due account should be given to the existing role, 
function and structure of International organizations and of the 
role Member States therein the Community, represented by the 
Commission, wil I have to assume progressively Its 
responsibilities in ICA0, ECAC, etc. to ensure Community 
coordination, to express common positions and to defend Community 
interests as a whole. 
Negotiations at Member State level 
58. In other cases, where Member States have been authorized to 
negotiate, there wi II be a need for coordination In order to ensure 
that the interests of other Member States and of the Community as a 
whole are taken Into account and balanced against the Interests of 
the Member State authorized to negotiate. 
The Council, therefore, when authorizing a Member State to negotiate 
shall where necessary specify directives for the negotiations to 
ensure that the Member State concerned acts within Community law and 
. policy. The Commission should be able to attend. When there Is 
cause for concern the Commission or another Member State can reQuest 
a discussion in the Council, for example in an Aviation Committee as 
discussed below (Para 60). 
59. The result of the negotiations by a Member State should be 
communicated to the Commission within a certain time before its 
signature in order for the Commission to check the conformity with 
Community Law and possible Council directives. The results will 
also be submitted to the Council for Information. 
coordination 
60. As from 1 January 1993 the Community would need to take up Its 
responsibility for al I negotiations with third countries. This means 
that as from that date all reQuests for negotiations coming from 
either the Member States or from third countries wlll be channeled 
-25 -
through the community. As this wlll Involve, of course, considerable 
extra work for the Commission and the Council adequate provisions 
wlll have to be made. In order to facllltate this work the Council 
could consider to establish an ad-hoc Aviation Committee to assist 
the Commission within the framework of such directives as the 
Council may Issue to It. To ensure confldentlallty the size of this 
Committee could be limited to one expert per Member State plus one 
"back-up" member. 
61. The Committee could i.a. be active In 
-assisting the Council In defining the pol Icy for external 
aviation relations of the Community on the basis of proposals 
made by the Commission 
-preparing decisions of the Council on proposals of the 
Commission on whether a negotiation with a third country should 
be dealt with at Community level, or at Member State level or 
both. 
-preparing decisions by the Council on the recommendation of 
directives for negotiations In case of negotiations at Community 
level. The Committee shall further assist the Commission In the 
conduct of these negotiations. 
-preparing Council decisions and guidelines on Commission 
proposal for negotiations at Member State level to ensure a 
coordinated approach. Deviations from such guidelines wlll have 
to be proposed by the Commission to the Council. 
-discussing the negotiating results and, when necessary, prepare 
Council decision to approve the agreement reached. 
62. It will, of course, be necessary to develop procedures to obtain the 
advice of interested parties and In particular of organizations of 
air carriers, airports and consumers. It will be Important, 
therefore, that these organizations and In particularly the air 
carrier organizations really represent the Industry. 
63. Close contact of industry representatives will be ensured on the 
occasion of the negotiations. In addition to the existing 
consultation processes on national and Community level, additional 
arrangements may be necessary. 
-26 -
Negotiating directives 
64. Before any negotiation at Community level can take place It Is 
normally necessary to develop directives for negotiations which give 
the negotiators the necessary pol icy guidance, without, however, 
llmltlng their ability to negotiate. To this end the Aviation 
Committee, on a proposal from the Commission which wlll, If need be, 
have consulted interested parties will have to balance the different 
Interests of Member States, air carriers, airports, consumers, etc. 
It Is the Council who decides on the directives for negotiations, 
but It may decide to authorise the Aviation Committee to act on its 
behalf In respect of detailed negotiation briefs. 
The Parliament wil I have to be associated in an appropriate manner 
and procedures need to be developed with the Par I lament which 
ensures Insight but maintains confldentlallty. 
The allocation procedure 
65. The al location problem is closely related to the outcome of the 
negotiations. It arises i.a. when the number of air carriers to be 
designated Is I imited by the agreement, or when the capacity Is 
limited or both. 
66. In para 47 the need for a selection procedure which ensures the non­
discriminatory treatment of air carriers for the al location of 
traffic rights has been set out. The best solution would seem to be 
a system of Qua I itative criteria which should normally be applied 
only to the al location of additional rights while taking into 
account the existing situation. 
67. First it has to be established that the proposals are bonaflde. In 
order to carry out this assessment the carriers wi I I have to submit 
fairly detailed information to support their reQuest: the long term 
objectives of the carrier, market forecast for the route in 
question, the technical ability to operate the route, etc. In order 
to ensure that the information provided by the air I Ines is realistic 
and does not give an over optimistic picture, the information should 
be carefully checked. 
The selection among bonafide proposals should be based on which 
carrier can best make use of the traffic rights according to a range 
of criteria 
-in terms of service to the pub I ic 
-in terms of competition In the relevant market 
-in terms of the use of scarce resources 
-in terms of establ lshed Community pol icy 
(e.g. slot al location, public service obligation). 
-27 -
It has to be recognised that these criteria are general In nature 
and therefore difficult to apply. Therefore, depending on the route 
In question, additional select Ion criteria can be added to meet 
special circumstances (the operators strategy, sales and 
promotional plans, etc.). It might be possible that a designation 
would have to be withdrawn when the results of the operation do not 
meet reasonable expectations and better candidates are Interested In 
operating the route. 
68. Obviously not al I considerations In the analysis leading to a 
decision on the initial allocation of traffic rights are 
quantifiable and objective It will be necessary, therefore, to 
ensure that the procedures leading to a decision are non­
discriminatory, transparent and that an effective appeal procedure 
exists which is easy to apply. 
69. This means that In a case where a Member State has negotiated the 
agreement, decisions on the al location of rights should be taken by 
the competent authority of that Member State. It Is necessary that 
an appropriate speedy appeal procedure exists or is created. 
70. Where the Community has negotiated the agreement, the allocation of 
traffic rights reQuires a specific procedure at Convnunlty level. 
Treaty rules on the al location of Implementation tasks as laid down 
In Article 145 wi I I have to apply. Accordingly the decisions shal I 
be taken In line with rules laid down In the Council Decision No. 
87/373/EEC of 13 July 1987 ("procedure 11"). The Convnlsslon shall In 
Its task be assisted by a Committee ("Management Convnittee for Air 
Transport") composed of representatives of the Member States and 
chaired by the Commission. Within this Convnittee the votes of Member 
States shall be weighted in accordance with Article 148(2) of the 
Treaty. The Commission in Its decision has to balance out 
potential economic confl lets In a way which ensures neutrality and 
compatibility with Single Market requirements. 
71. The following general procedures should be applied both when a 
Member State and the Commission will have to carry out the 
allocation: 
there has to be a publ lshed notice in the official Journal 
calling for submissions of interest. 
parties must send written submissions. 
these submissions should be publicly available, except for 
confidential information. 
there should be a publ le hearing where parties can present 
their case. 
the decision should be published, together with the reasons 
and considerations which have led to the decision. 
-28 -
Continuity 
72. The Commission Intends to take the necessary measures In ordr to 
ensure that there will be sufflclaent staff (Including recourse to 
national expertise) deal Ing with external aviation relations. The 
use of national expertise wlll ensure continuation and coordination. 
Confldentlallty 
73. One of the most dlfflcult aspects of the procedures to be developed 
Is the necessary confidentiality of the directives for negotiations. 
Such directives wil I be prepared by the Commission In close 
collaboration with the Interested parties and with Member States. 
Experiences so far have demonstrated that It wlll only be possible 
to avoid public knowledge of the mandates If the details are known 
to only a few people. It Is necessary that the Council approves 
general directives for negotiations because the detailed negotiation 
briefs should only be discussed In the aviation committee, where 
confldentlallty can be safeguarded. 
Docuaentatlon 
74. In order to be able to carry out Its duties It wlll be necessary for 
the Commission to develop a data bank where all the ASA's, their 
annexes and all additional memoranda of understanding, exchanges of 
letters etc. concluded between Member States and third countries are 
stored. Where necessary this Information wlll be kept confldentlal 
and wlll be accessible only for the Commission and members of the 
Aviation Committee. 
Together with the Industry and with Member States, the Commission 
wlll have to develop statlstlcal Information related to the air 
services to, from and within the Community, on traffic, schedules 
and yield performance in order to prepare and facilitate decisions 
on the level of the negotiations and on the directives for 
negotiations. The assistance of Member States In the development of 
this data bank Is Indispensable. 
-29 -
IV. DECISIONS 
75. The Council Is therefore asked to: 
-endorse of the basic elements of this communication and the 
development of procedures In accordance with It, including the 
establishment of an Aviation Committee to create an efficient 
forum for coordination and decision; 
-adopt the proposal for a Council Decision on a consultation and 
authorization procedure for agreements concerning commercial 
aviation relations between Member States and third countries (COM 
(90) 17 final of 23 Febuary 1990 as amended by the proposal in 
the Annex I); 
-adopt the proposal for a council Regulation (EEC) on the 
application of Article 85(3) of the Treaty to certain categories 
of agreements and concerted practices In the air transport sector 
(COM(89) 417 final -OJ No C 248, 29.9.1989); 
-adopt the proposal for a councl I Regulation (EEC) amending 
Regulation (EEC) No 3975/87 of 14 December 1987 laying down the 
procedure for the application of the rules on competition to 
undertakings in the air transport sector (COM(89) 417 final -
OJ No C 248, 29.9.1989). 
-30 -
Annex I 
Proposal from the Conllllsslon 
-31 -
Proposa I for a 
COUNCIL DECISION 
on a consultation and 
authorization procedure for 
agreements concerning commercial 
aviation relations between 
Member States and third countries 
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 
Convnission, 
Whereas the Counci I Decision 69/494/EEC 
of 16 December 1969 on the progressive 
standardization of agreements concerning 
commercial relations between Member 
States and third countries and on the 
negotiations of Community agreements<1> 
provides a consultation and authorization 
procedure for a I I commerc i a I agr.eements 
with third countries; 
Whereas it is necessary that commercial 
relation with third countries in the 
field of civil aviation are governed by 
special provisions replacing the 
provision of Decision 69/494/EEC; 
( 1) OJ No L 326, 29.12.1969, p. 39. Proposal from the Commission 
to amend the proposal for a 
Counci I Decision on a consultation 
and authorization,procedure for 
agreements concerning commercial 
aviation relations between 
Member States and third countries 
COM(90) 17 final of 23 Febuary 1990 
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 
COIMlission, 
Whereas Counci I Decision 69/494/EEC of 
16 December 1969 on the progressive 
standardization of agreements concerning 
commercial relations between Member 
States and third countries and on the 
negotiations of Community agreements<1) 
provides a consultation and authorization 
procedure for al I commercial agreements 
with third countries; 
Whereas it is necessary that commercial 
relations with third countries in the 
field of civi I aviation are governed by 
special provisions replacing the 
provision of Decision 69/494/EEC; 
(1) OJ No L 326, 29.12.1969, p. 39. 
-32 -
Whereas commercial aviation relations are 
regulated by bilateral air services 
agreements, their annexes and amendments 
thereto, and other bi lateral and 
multilateral arrangements containing 
provisions on market access. capacity, 
tariff arrangements or related 
provisions; 
Whereas a procedure mus~ be established 
to ensure that the replacement of 
national agreements by Convnunity 
agreements is carried out progressively; 
Whereas, while all negotiations with a 
view to conclusion of new treaties, 
agreements, or. arrangements, or to 
amendment of those already existing, must 
be conducted in accordance with a 
community procedure, it is never the less 
permissible for existing bi lateral air 
services agreements, their annexes and 
any amendments thereto, and any other 
commercial bilateral or multi lateral 
arrangement concerning aviation relations 
with third countries to be provisionally 
extended, expressly or tacitly, provided 
that their extension does not hinder the 
implementa•t ion of the common commercial 
av i at ion po I icy ; Whereas commercial aviation relations are 
regulated by bilateral air services 
agreements, their annexes and amendments 
thereto, and other bi lateral and 
multi lateral arrangements containing 
provisions on market access, capacity, 
tariff arrangements or related 
provisions; 
Whereas a regulatory framework for 
negotiations with third countries and a 
transitional period should be provided 
for; 
Whereas the transitional period should go 
beyond 31 December 1992 to al low for a 
gradual introduction of Community 
negotiations; 
Whereas the transitional provisions need 
to be provided for 6 years, with the 
possibi I ity of a further extension on a 
yearly basis; 
Whereas it is necessary to provide for 
authorization for provisions in the air 
transport services agreements and 
additional arrangements concluded before 
1 January 1993 between Member States and 
third countries to remain in force, in 
order to avoid interrupting their 
commercial relations with the third 
countries concerned; whereas such 
-33 -
Whereas, in order to ascertain whether 
this condition is met, prior consultation 
should take place at Community level 
between the Member States and the 
Convnission; 
Whereas, however, in certain exceptional 
cases, where negotiation by the Community 
is not yet possi.ble and an interrupt ion 
in relations based on agreement might 
compromise the development of convnercial 
aviation relations with the third country 
in question to the detriment of the 
Convnunlty and the Member States, 
provision should be made, as a temporary 
measure and for a limited period, for 
possible negotiation by Member States; 
Whereas, in order to prevent such 
negotiations hindering the implementation 
of the common commercial aviation pol icy, 
they may be conducted by Member States in 
the framework of guidelines agreed upon 
beforehand in accordance with a Community 
procedure and covering the basic terms of 
the agreement to be negotiated; authorization does not absolve the Member 
States from the obi igation to take al I 
appropriate steps to eliminate any 
Incompatibility between such agreements 
and the provisions of Community law; 
Whereas most of the matters covered by 
these agreements will in future be 
governed by Community agreements; whereas 
the provisions of the agreements which 
are to remain in force must not 
constitute an obstacle for the 
implementation for the common external 
aviation policy; whereas Member States 
may have to adapt, or, if necessary, 
terminate those agreements where their 
remaining in force hinders the 
implementation of the common external 
aviation policy; 
Whereas during the transitional period 
the Counci I should have the possibi I ity 
to authorize Member States to conduct 
bilateral negotiations with third 
countries; 
Whereas in cases where it is decided that 
Member States can conduct negotiations 
with third countries the Counci I may 
issue directives for such negotiations; 
Whereas, before an agreement is signed, 
the results of the negotiations must be 
checked to ensure that they conform with 
the Joint conclusions; -34 -
Whereas Article 113 of the Treaty not 
only provides for the procedure for 
negotiations by the Community, but also 
for the establishment of a special 
committee appointed by the Counci I to 
assist the Commission in its task; 
Whereas, in cases where the Community 
negotiates with third countries, 
procedures for the al location of 
negotiating results should ensure 
neutrality and compatibi I ity with 
Community legislation; 
Whereas, before an agreement is signed, 
the results of the negotiations should be 
checked to ensure that they conform with 
the Joint conclusions, 
-35 -
HAS ADOPTED THIS DECISION: 
TITLE I 
Express or tacit extension of 
agreements already existing 
Article 1 
Member States shall communicate to the 
Commission all bi lateral air services 
agreements, their annexes and any 
amendments thereto, or any other 
commercial bilateral or multi lateral 
arrangements with third countries 
concerning aviation relations within the 
meaning of Article 113 of the Treaty, at 
the latest one year after adoption of 
this Decision. 
However, such agreements or arrangements 
the extension of which, whether express 
or tacit, is proposed shal I be notified 
to the Convnission not later than three 
months before the date of express 
extension or of the expiry of the period 
during which notice of termination of the 
agreement or arrangement in Question may 
be given. 
The Commission shall communicate the text 
of the notified agreements and 
arrangements to the other Member States 
within two weeks following the 
notification. HAS ADOPTED THIS DECISION: 
TITLE I 
Express or tacit extension of 
agreeaents already existing 
Article 1. 
Member States shall communicate to the 
Commission all bi lateral air services 
agreements, their annexes and any 
amendments thereto, or any other 
commercial bilateral or multi lateral 
arrangements with third countries 
concerning aviation relations within the 
meaning of Article 113 of the Treaty, at 
the latest one year after adoption of 
this Decision. 
However, such agreements or arrangements 
the extension of which, whether express 
or tacit, is proposed shal I be notified 
to the Convnission not later than three 
months before the date of express 
extension or of the expiry of the period 
during which notice of termination of the 
agreement or arrangement in question may 
be given. 
The Commission shall communicate the text 
of the notified agreements and 
arrangements to the other Member States 
within two weeks following the 
notification. 
Article 2 
After the notification has been received, 
prior cqnsultation shal I take place at 
the reQuest of a Member State or on, the 
initiative of the Convnission. such a 
reQuest for consultation shal I be filed 
with the Convnission by the Member State 
concerned within four weeks after the 
notification to it of the agreement or 
arrangement by the Convnisslon. 
Consultation shall begin within three 
weeks following the receipt by the 
Convnission of the notification referred 
to in the second paragraph of Article 1 
or of the request from a Member State. 
The main purpose of the consultation 
shal I be to establish whether a Community 
negotiation should be initiated or, if 
not, whether the agreements to be 
extended expressly or tacitly contain 
provisions relating to the common 
commercial aviation policy within the 
meaning of Article 113. If such is the 
case, it shall be established whether 
such provisions could constitute an 
obstacle to that policy. The 
consultation shall also cover al I 
instruments currently in force between 
the other Member States and the third 
country concerned. -36 -
Article _g_ 
After the notification has been received, 
prior consultation shal I take place at 
the request of a Member State or on the 
initiative of the C011111ission. such a 
request for consultation shall be filed 
with the Commission by the Member State 
concerned within four weeks after the 
notification to it of the agreement or 
arrangement by the Convnission. 
Consultation shall begin within three 
weeks following the receipt by the 
Commission of the notification referred 
to in the second paragraph of Article 1 
or of the request from a Member State. 
The main purpose of the consultation 
shal I be to establish whether a Community 
negotiation should be initiated or, if 
not, whether the agreements to be 
extended expressly or tacitly contain 
provisions relating to the common 
commercial aviation pol icy. If such is 
the case, It shal I be established whether 
such provisions could constitute an 
obstacle to that policy. The 
consultation shall also cover all 
instruments currently in force between 
the other Member States and the third 
country concerned. 
-37 -
Article 3 
If the Commission establishes. either 
after consultation or on its own 
initiative, that even though certain 
provisions in the instruments to be 
extended expressly or tacitly come within 
the scope of the common commercial 
aviation policy within the meaning of 
Article 113 those provisions would not, 
during the period of extension envisaged, 
constitute an obstacle to implementation 
of the common commercial aviation policy, 
it may authorize Member States to extend, 
expressly or tacitly, for a period to be 
specified, the provisions in Question of 
the instruments which were the subject of 
the consultation. This period shal I not 
exceed one year. 
If, however, the instruments in question 
contain either a Community reservation 
clause or a clause providing for annual 
notice of termination, express or tacit 
extension may be authorized by the 
Commission for a longer period. 
Article 4 
If the Commission establishes, either 
after consultation or on its own 
Initiative, that provisions in the 
Instrument to be extended expressly or Article~ 
If the Commission establishes, either 
after consultation or on its own 
Initiative, that even though certain 
provisions in the instruments to be 
extended expressly or tacitly come within 
the scope of the common commercial 
aviation policy those provisions would 
not, during the period of extension 
envisaged, constitute an obstacle to 
implementation of the common commercial 
aviation policy, it may authorize Member 
States to extend, expressly or tacitly, 
for a period to be specified, the 
provisions in question of the instruments 
which were the subject of the 
consultation. This period shall not 
exceed one year. 
If, however, the instruments in question 
contain either a Community reservation 
clause or a clause providing for annual 
notice of termination, express or tacit 
extension may be authorized by the 
Commission for a longer period. 
Article.! 
If the Commission establishes, either 
after consultation or on its own 
Initiative, that provisions in the 
instrument to be extended expressly or 
-38 -
tacitly could, during the period of 
extension envisaged, constitute an 
obstacle to the implementation of the 
common commercial aviation policy, in 
particular by reason of divergencies 
between the pol lcies of Member States, it 
shal I submit a detailed report to the 
Council. This report shall be 
accompanied by the necessary proposals 
and, where appropriate, by 
recommendations requesting that the 
Commission be authorized to open 
Community negotiations with the third 
countries in question. tacitly could, during the period of 
extension envisaged, constitute an 
obstacle to the implementation of the 
common commercial aviation pol icy, in 
particular by reason of,divergencies 
between the policies of Member States, it 
shall submit a detailed report to the 
Counci I. This report shall be 
accompanied by the necessary proposals 
and, where appropriate, by 
recommendations requesting that the 
Commission be authorized to open 
Community negotiations with the third 
countries in question. 
Article~ 
The provisions governing matters covered 
by the common external aviation policy 
within the meaning of Article 113 of the 
Treaty and contained in air transport 
services agreements and additional 
agreements concluded before 1 January 
1993 between Member States and third 
countries may be maintained in force by 
the Commission unti I 31 December 1998 as 
regards those areas not covered by 
agreements between the Community and the 
third countries concerned and in so far 
as their provisions are not contrary to 
the Community pol icy. 
1. -39 -
TITLE II 
Transitional provisions 
Article 5 
Without prejudice to Article 113 of 
the Treaty and until 31 December 
1992, the Council acting on a 
proposal from the Commission and 
after the required prior 
consultation may, by way of 
exception, authorize bi lateral 
negotiations between Member States 
and certain third countries in 
cases where Connunity negotiations 
prove to be not yet possible as a 
result of compelling circumstances 
of an administrative or technical 
nature. To the extent that such agreements are 
not compatible with the Treaty, the 
Member State or States concerned shall 
take all appropriate steps to eliminate 
the incompatibilities established. Member 
States shall, where necessary, assist 
each other In accordance with the 
procedures provided for in this Decision. 
1. TITLE I I 
Transitional provisions 
Article§. 
Untl I 31 December 1998, the Council 
acting by qualified majority on a 
proposal from the Commission, after 
the required prior consultation, 
may authorize Member States to 
conduct bi lateral negotiations with 
third countries concerning the 
conclusion, modification and/or 
application of bi lateral air 
services agreements, the annexes 
thereto or any other commercial 
bilateral or multi lateral 
arrangements with third countries 
in cases where Community 
negotiations prove to be not yet 
possible. Directives and 
conditions may be attached to the 
authorization. 
-40 -
2. 
3. The provisions of this Article 
shal I apply where, for any special 
reason, a Member State considers 
that, in order to avoid any 
interruption in commercial 
relations based on agreements, 
negotiations must be undertaken 
with some third country. 
In derogation of paragraph 1, the 
Commission may, until 31 December 
1992, authorize Member States to 
enter into bilateral negotiations 
with third countries concerning 
modification and/or application of 
annexes of existing agreements in 
respect of exercise of traffic 
rights, designation of airlines, 
approval of air fares and 
schedu I i ng; 
Article 6 
Consultation conducted in accordance with 
Article 5 shall be ensured by the 
Commission and 
( I ) shall involve such co-ordination as 
w i 1.1. ensure the proper functioning. 
and the strengthening of the 
internal market, as wi I I take 
account of the legitimate interests 
of the Member States, as regards 2. 
3. The provisions of this Article 
shal I apply where, for any special 
reason, a Member State considers 
that, in order to avoid any 
interruption in commercial 
relations based on agreements, 
negotiations must be undertaken 
with some third country. 
By way of derogation from paragraph 
1, the Commission may, unti I 
31 December 1998, authorize Member 
States to enter Into bilateral 
negotiations with third countries 
concerning the modification and/or 
application of the annexes to 
existing agreements In respect of 
the exercise of traffic rights, the 
designation of airlines, the 
approval of air fares and 
schedu I i ng. 
Article 2 
Consultation conducted in accordance with 
Article 6 shall be ensured by the 
Commission and 
( I) shall involve such coordination as 
will ensure the proper functioning 
and the strengthening of the 
internal market, as will take 
account of the legitimate interests 
of the Member States, as regards 
safeguarding and extending their 
convnercial aviation relations with 
third countries and as wi II 
contribute towards the 
establishment of uniform principles 
of common convnercial aviation 
policy in relation to the country 
in Question; 
(11) shall be resumed during 
negotiations if developments in the 
latter so require and particularly 
if the Member State concerned 
Intends to digress from the 
guidelines adopted at the time of 
consu I tat ion; 
(Ill) shall -as regards point (I) and 
(11)-lead to conclusions which 
will serve as guide I ines for the 
Commission or for the Member State 
during the negotiations. 
Article 7 
At the end of negotiations the Member 
State concerned shall communicate to the 
Commission the results of such 
negoUat-lons and sha-11 inform the other 
Member States thereof. -41 -
safeguarding and extending their 
commercial aviation relations with 
third countries and as wi I I 
contribute towards the 
establishment ot uniform principles 
of common commercial aviation 
policy in relation to the country 
In question; 
(II) shall be resumed during 
negotiations if developments in the 
latter so reQuire and particularly 
if the Member State concerned 
Intends to digress from the 
guidelines adopted at the time of 
consu I tat ion; 
(Ill) shall -as regards points (I) and 
(II)-lead to conclusions which 
will serve as guide I ines for the 
Commission or for the Member State 
during the negotiations. 
Article~ 
At the end of negotiations the Member 
State concerned shal I communicate to the 
Commission the results of such 
negotiations and shall inform the other 
Member States thereof. 
If within five working days after 
communication to the Commission no Member 
State has raised any objection with the 
Commission to the proposed agreement or 
communicated any such objection to the 
Member State concerned, the Commission 
shall forthwith inform the Counci I and 
the other Member States of that fact, 
unless, for its part, the Commission has 
any objection to raise. 
Upon receipt of this information the 
agreement in Question may be concluded. 
In all other cases, the agreement may be 
concluded only after authorization by the 
Counci I, acting by a Qualified majority 
on a proposal from the Commission. 
TITLE I I I 
Final provisions 
Article 8 
The information and consultations 
provided for in this Decision shal I be 
covered by professional secrecy and 
shall, in particular, not involve the 
disclosure by the Commission on 
information provided by a Member State 
under this Decision and certified by that 
State as being convnercially sensitive, 
except for the purposes of Article 1. -42 -
If within five working days after 
communication to the Commission no Member 
State has raised any objection with the 
Commission to the proposed agreement or 
communicated any such objection to the 
Member State concerned, the Commission 
shall forthwith inform the Council and 
the other Member States of that fact, 
unless, for its part, the Convnission has 
any objection to raise. 
Upon receipt of this information the 
agreement In question may be concluded. 
In all other cases, the agreement may be 
concluded only after authorization by the 
Councl I, acting by a qualified majority 
on a proposal from the Convnission. 
TITLE I II 
Final provisions 
Article~ 
The information and consultations 
provided for in this Decision shall be 
covered by professional secrecy and 
shall, in particular, not involve the 
disclosure by the Commission of 
information provided by a Member State 
under this Decision and certified by that 
State as being commercially sensitive, 
except for the purposes of Article 1. 
-43 -
Article .1Q. 
The consultation and coordination 
provided for in this Decision shal I take 
place within the framewoTk of a special 
committee appointed by the Counci I and as 
provided for in Article 113 of the 
Treaty. 
Article ll 
1. The Councl I having concluded an 
agreement between the Community and 
a third country or countries and 
est ab I i shed er i ter i a inter a I i a for 
the allocation of traffic rights, 
the Commission shal I take the 
necessary measures for its 
implementation. 
2. The Commission shal I be assisted by 
a committee composed of the 
representatives of the Member 
States and chaired by the 
representative of the Commission. 
The representative of the 
COmmission shal I submit to the 
committee a draft of the measures 
to be taken. The committee shal I 
deliver its opinion on the draft 
within a time I imit which the 
chairman may lay down according to 
the urgency of the matter. The 
-44 -
opinion shall be delivered by the 
majority laid down in Article 
148(2) of the Treaty in the case of 
decisions which the Council is 
required to adopt on a proposal 
from the Commission. The votes of 
the representatives of the Member 
States within the committee shall 
be weighted in the manner set out 
In that Article. The chairman shal I 
not vote. 
The Commission shall adopt measures 
which shall apply innediately. 
However, if these measures are not 
in accordance with the opinion of 
the committee, they shall be 
communicated by the commission to 
the Council forthwith. In that 
event the Commission may defer 
application of the measures which 
it has decided for a period of not 
more than one month from the date 
of such communication. 
The council, acting by a qualified 
majority, may take a different 
decision within the time limit 
referred to in the previous 
subparagraph. 
Article 9 
The following Article 15a is inserted in 
Decision 69/494/EEC; 
"Article 15a 
This decision does not apply to 
agreements and arrangements 
concerning aviation matters." 
Article 10 
This Decision is addressed to the Member 
States. 
Done at Brussels, For the Counc i I -45 -
Article ll 
The following Article 15a is hereby 
Inserted In Decision 69/494/EEC: 
"Article 15a 
This Decision does not apply to 
agreements and arrangements 
concerning aviation matters." 
Article ll 
The Councl I may extend, on the basis of a 
Commission proposal, the transitional 
periods of Articles 5 and 6 for one or 
more periods of one year. The 
Commission's proposal shal I be submitted 
at the latest 6 months before the expiry 
of the relevant transitional periods. 
Article H 
This Decision is addressed to the Member 
States. 
Done at Brussels, For the Counc i I 
The President 
-46 -
Annex 11 
The procedure step by step 
Step I -47 -
The procedure step by atep 
Reauest for negotiations: 
One or more Member States request negotiations with a 
particular third country or group of third countries, or 
the Community decides to Initiate negotiations. 
A third country or group of third countries requests 
negotiations with a particular Member State or with the 
Community as a whole. 
Action: These requests are all submitted to the Commission 
step 11 Preparation of a proposal 
The Commission considers the request and prepares, after 
consultations with Interested parties, a proposal 
Indicating If the negotiations should be carried out on 
Member State level or on Community level, In which case it 
also proposes draft directives for negotiations. 
Action: The proposal is submitted to the Council for examination In the 
ad hoc Aviation Committee. 
step 111 Decision of the council 
The Aviation Committee prepares the decisions of the 
Council on the proposal of the Commission to authorize the 
Commission to open the negotiations, or the Member States 
to negotiate individually. According to normal procedures 
the Counci I can decide non-controversial issues as an A 
point. In other cases the Council may have to decide after 
a debate. 
Consultation of Interested parties. 
The proceedings of the Aviation Committee will be strictly 
confidential. Detailed directives for negotiations will be 
kept secret. 
Action: Decision by the Council. 
Step IV Negotiations 
Depending on the decision the negotiations are carried out 
on Member State level or on Conrnunlty level. 
On Member State level: the negotiations are carried out by 
the Member State; the Commission can participate as 
observer. The Member State wlll negotiate within the 
framework agreed upon by the Aviation Committee or the 
Council and subject to directives or conditions Imposed by 
them. 
-48 -
On Community level: the negotiations are carried out by the 
Commission, within the directives for negotiations agreed 
upon by the councl I; the normal procedures for Community 
negotiations shal I apply; close contact with Industry 
representatives will be Insured on the occasion of the 
negotiations. 
Action: After inltlalling of the agreement the texts shall be 
submitted to the Aviation Committee and to the Commission. 
Step V Conclusion 
An agreement negotiated at Member State level can be signed 
by that Member State two weeks after Its referral to the 
Aviation Committee and the Commission, unless one of these 
parties raises objections against the result of the 
negotiations. In such cases the matter will be discussed by 
the Aviation Committee and when no agreement can be reached 
the Council shal I take the necessary decisions. This 
procedure Is without prejudice to the general competences 
of the Commission. 
An agreement negotiated at Community level shall, after 
discussion in the Aviation Committee, be referred to the 
Councl I for conclusion. 
The European Parliament will be Informed in line with 
existing procedures. 
Action: Signature of the agreement 
THE PROCEDURE STEP BY STEP 
STEP 1 REQUEST FROM REQUEST FROM 
STEP 2 
STEP 3 
STEP 4 
STEP 5 MEMBER STATES THIRD COUNTRY 
OR COMMUNITY / "- COMMISSION 
AVIATION 
COMMITTEE 
I COUNCIL 
MEMBER STATE/ ~ COMMUNITY 
NEGOTIATION""' NEGOTIATION 
AVIATION/ 
COMMITTEE 
SIGNATURE/ PARL. 
SIGNATURE 
-49 -
Annex 111 
Statlatlcal Tabulatlona -General 
-so -
TEAMS AND DEFINITIONS 
Geographlca1 Europe: 
Includes all International routes originating and terminating 
within Europe (Including Turkey and USSR up to 55.E), Azores, 
Canary Islands, Madeira and Cyprus. 
Europe-North Africa : 
services between Europe and Algeria, Egypt, Libya, Morocco, Sudan 
and Tunisia. 
Europe-Mlddle East : 
Terminating services between Europe and Bahrain, Iran, Iraq, 
Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, 
United Arab Emirates, Yemen and the Democratic Republic of Yemen. 
North Atlantic 
Routes between Europe and Canada/ USA 
Other Long haul than North Atlantic: 
The sum of Mid and South Atlantic, Sub Saharan Africa, Far 
East/Australasia and other routes. 
Total 1nternat1ona1 
The sum of Int-short/medium haul and total long haul 
Domestic= 
Routes commencing and terminating within the natural frontiers 
(metropolitan area) of the reporting carrier's country of 
registration. Routes between a State and territories belonging to 
It, as well as routes between two suctLterrltorles. 
Revenue passengers: 
All passengers counted on a point-to-point basis, carried at 25X or 
more of the normal applicable fare for the Journey. 
Revenue Passenger-KIiometres -RPK 
One fare-paying passenger transported one kilometre. RPKs are 
computed by multiplying the number of revenue passengers by the 
kilometres they are flown. 
TABLE A 
INIERNATimAL SCllDLFD PASS~ 1'RAFFIC BY RIDICN -:OC CARRIERS 
.m. AP AZ M. IB ICL UI LG ~ m. .z. .It. A'V.BbVE 
Share of geographical Bllr. 
in total traffic 
(dcme1tic + intl) 78.2 49.S 43.4 49.3 37.4 S0.1 44.6 100 26.0 67.4 48.8 53.4 S0.1 
Share of geographical Bllr. 
in total intl traffic 86.9 62.S 71.S 63.1 77.8 St.0 68.4 100.0 72.6 67.4 87.6 71 .9 73.4 
Share of North Atl. traffic 
in total Intl traffic 13.1 8.8 11.0 19.2 7.3 22.4 15.2 -9.3 13.6 7.7 12.1 11.6 
Share of Bllrope-NorthAfr 
traffic in total inti traffic -12.8 4.9 0.4 2.S 2.2 1.7 - S.1 2.6 0.2 o.s 2.7 
Share of Bllrope-Middle Ea1t 
Traffic in total inti trffc - 2.1 2.4 1.3 o.s 2.1 2.2 - S.2 1.8 0.6 -LS 
V, -Share of other long haul 
traffic in total Intl traffic -13.7 10.3 16.0 12.0 22.3 12.4 -7.8 14.6 4.0 15.6 10.7 
Total 100 100 100 100 100 100 100 100 100 100 100 100 100 
Share of dcme1tic traffic 
in total traffic 10.1 20.9 39.3 21.8 52.0 0.7 36.0 -64.1 -44.3 25.7 26.3 
Share of intl traffic in 
total traffic 89.9 79.1 60.7 78.2 48.0 99.3 64.0 100 35.8 100 SS.1 74.3 73.7 
URE: AF.A -Statiltical Appendices to Yearbook., May 1991 mm: Totall may not 1\111 due to rounding 
TABLE B 
INTRA-EC NI> ono INTEAM\TIQW. TRAf'f'IC B'f MEMBER STATE Ml> B'f GEOGRAPHICAL IMRICET (PaH•ter• -1990) 
Bel9h11 Deraark France 
lntro-£C (•) 1158920 1388388 1415851 
X 70.1 41.2 54.7 
EFTA 331173 1058897 1071183 
X 12.0 35.7 1.1 
Europe . 
141217 528793 (apart fr• 112n 
EC I: EFTA) 
X 2.1 5.0 4.5 
Total X 
Europe 15.4 11.1 11.3 
North 
Atlantlo 302IIO 191270 14080M 
" 11.0 1.7 11.1 
South -Aaerlca 24803 22NN 
X - 0.1 1.1 
Mldclle Eaat 
I: Africa ll3IO 11521 1414454 
" 3.1 0.4 12.5 
Far Eaat 11110 153733 157751 
X 0.1 5.2 5.5 
Au1tral la I: ---New Zealand 
" ---
Total 2711D> 2111112 11175773 
-.. .. -, not 1111 aue to r0111C11n1 
Source: ICM> Dlge1t of Statl1tlc1 N• 314 
(•) Exolucllng dcae1tlc traffic Gel'IICll'ly Greece Ireland Italy Lux•bourg Netherland• 
821n14 1211582 1713211 4520909 12033 28"818 
48.7 . 51.1 15.0 18.3 17.2 59.8 
1874124 190331 - 511145 - 537928 
15.0 1.1 - 7.8 - 11.1 
828407 251910 - 214887 - 211315 
8.8 12.3 - 3.2 - 4.4 
71.3 80.0 95.0 77.1 17.2 75.1 
1132321 113242 11531 715253 - 105879 
15.5 7.1 5.0 10.5 - 12.5 
-- 181351 157483 -. 13087 
1.3 -- 2.3 - 1.3 
418555 141111 - 411511 345 121157 
3.7 7.0 - 1.1 2.1 2.8 
H2934 83043 - 233385 - 390528 
7.7 3.0 - 3.4 - 1.1 
5n10 43811 - 3Ml4 - 11211 
0.5 2.1 - 0.5 - 0.4 
12!508924 2083123 1804822 1117155 12371 4131571 Portugal Spain 
1157987 3589117 
71.5 71.8 
154821 375741 
1.8 7.8 
- 15025 
- 0.3 
81.1 79.7 
170483 394188 
10.5 7.1 
123083 454710 
7.8 1.1 
11588 91915 
0.7 2.0 
- 10174 
- 1.2 
--
--
1117841 4170378 U( 
10550407 
53.8 
1944113 
I.I 
130854 
3.2 
18.1 
4158345 
21.2 
120044 
0.8 
152724 
3.3 
1321381 
8.7 
2311!50 
1.2 
11118408 V1 
N 
TABLE C 
INTEIII\Tl<M\L lRAF'FIC (DCLU>ltG INTRA~ EC TRAF'F'IC) 8t MEMBER STATE AND 8t GEOGRAPHICAL INICET (1110) 
Beith• Denlark Fr•c• 
Europe 
(excludlng 
EC a Ef'TA) s I.I 1.3 I.I 
EFTA s 41.0 11.3 20.0 
North Atl•tlc s 37.4 12.4 21.1 
South 
Merica s - 1.5 4.2 
Mldclle Eoat 
s 10.7 0.7 27.1 
For·Eoat s 2.1 1.7 12.2 
Auatrol la a 
New Zealand s ---
•Total•-, not 1111 clue to rounding 
Source: ICAO Dlgeat of Statlatlca N• 314 Ce,..,, 
13.2 
29.8 
30.7 
2.7 
7.4 
15.3 
0.1 Greece lr•l•d Italy Luxtllbourg Netherland• Portugal 
29.8 - 1.4 - 10.8 -
22.0 - 22.8 - 27.5 33.7 
11.1 100 31.1 - 31.0 37.1 
-- I.I - 3.2 28.8 
18.1 - 11.2 100 8.5 2.5 
7.3 - 10.2 - 20.0 -
5.1 - 1.8 - 0.1 -Spain 
1.1 
28.1 
28.2 
32.5 
7.1 
4.3 
-ll( 
7.0 
21.4 
45.1 
1.3 
7.2 
14.7 
2.1 V1 
1.,,1 
-54 -
Table D 
Hlstorlcal and Forecast growth rates In European long haul travel by 
destination region, 1980 -2000 CS per annum; arrivals basis) 
Destination region 1980-1985 1985-1989 1989-2000 
North America -2.7 17.9 9.8 
Caribbean -2.3 21.5 8.1 
Central/South America 4.4 5.5 3 .1 
Africa (except North) 5.7 5 .1 5.6 
South Asia/Indian Ocean 1.2 9.5 7.0 
South East Asia 1.9 20.0 9.7 
Far East/Pacific 8.5 7.3 7.2 
Austral la/New Zealand 4.9 U.9 8.1 
Total 1.4 13.5 8.3 
Source Economic lntelllg~nce Unit 
TABLE E 
INIF..RNATimAL SCJEll.B) PASSIHJER 'IRAFFIC BY RBJICN -IC C'.ARRIBS (based on RH{s) 
Share of 1eo1raphical Eur. 
in total traffic 
(daneatic + inti) 
Share of geographical Eur. 
in total inti traffic 
Share of North Atl. traffic 
in total Intl traffic 
Share of Europe-North Afr 
traffic in total inti traffic 
Share of Europe-Middle Eaat 
Traffic in total inti trffc 
Share of other Iona haul 
traffic in total Intl traffic 
Total 
Share of daneatic traffic 
in total traffic 
Share of inti traffic in 
total traffic .IL 
41.3 
42.O 
58.O 
-
-
-
100 
1.7 
98.3 IL & A 
16.6 25.3 15.3 
21.0 28.2 16.3 
25.5 32.1 39.O 
8.0 2.8 0.5 
3.3 2.4 1.8 
42.2 34.5 42.5 
100 100 100 
20.8 10.4 5.9 
79.2 89.6 94.1 
DID!: APA -Statiatical Appendicea to Yearbook, May 1991 
tOIE: Totala may not 1\ID due to rounding 1B & lll .IQ. m. 1li. I 
29.8 10.4 18.6 100 34.7 21.8 34.9 
38.O 10.4 20.O 100.0 40.8 21.8 43.6 
20.4 39.8 38.2 -24.6 34.7 33.5 
1.2 1.6 1.4 -1.7 2.1 0.3 
0.7 2.0 2.7 - 3.1 2.3 1.1 
39.7 46.2 37.7 -29.7 39.0 21.5 
100 100 100 100 100 100 100 
21.6 0.02 6.8 -15.1 -19.8 
78.4 99.9 93.2 100 84.9 100 80.2 1P AVBJDE 
35.8 32.0 
40.3 35.2 
23.2 30.8 
0.1 1.6 
VI 
VI -1.6 
36.4 30.8 
100 100 
11.2 9.4 
88.8 90.6 
-56 -
Annex IV 
The EC/US Market -A atatlatlcal overview 
-57 -
Jbe Ec1un1teg states Market 
1. 
2. 
3. Routes 
The total number of different North Atlantic routes between the 
United States and the European Community as of August 1991 was 278 
(lncludlng 122 city pairs served under a publlahed through fllght 
number but with aircraft change at an Intermediate point). (See Table 
A). 
Table B details the share carrier by carrier. In summary, EC 
carriers operate on 97 routes. Despite this, EC carriers do perform 
well In terms of business and market share on the routes. Table C 
details the EC share of capacity flown, broken down by Member States. 
Of the 11 EC Member States, 5 have the majority share of their market 
with the us. 
Gatewavs 
Again using data from August 1991 there is an imbalance in what has 
been achieved between the Convnunlty and Member States. In the EC 
there are 28 Gateways, 27 used by EC carriers and 22 used by US 
Carriers (see table D) and of 55 American Gateways, 54 are used by US 
carriers and 22 by EC carriers (see Table E). The AEA have 
addltlonally completed an analysis (Table F) which confirms the 
present imbalance. 
Fifth Freedom Operations 
Table G details the Fifth Freedom "rights" achieved by us negotiators 
for their carriers .. As of August 1991, there were 20 routes operated 
by 4 carriers. In addition to this. there were 33 routes operated 
from European airports by US airlines. The AEA's analysis is also 
provided (Table H). 
August a1 
AMSTERDAM CITY PAIRS -58 -
Anchorage: JL (onllne stopover traffic only) 
Atlanta: DL, KL 
Baltimore: KL 
Boston: NW 
Chicago: KL, RO 
Da I las : DL* 
Denver : co• 
Houston: co•, KL 
Honolulu: CO* 
Los Angeles KL, TW*, DL*, NW* 
Miami : DL* 
Mlnneapolls KL, NW 
New York: PK, PA, TW, KL, co•, RO, RJ 
Orlando: KL, UA*, DL* 
San Franslco: DL* 
Tampa: DL* 
Washington UA* 
ATHENS Atlanta: PA* 
Boston: NW 
Jacksonville: PA* 
Los Angeles: TW* 
New York : OA, TW*, PA* 
San Francisco: TW* 
Washington: PA* 
BARCELONA 
New York : 18, PA, TW 
BERLIN Atlanta: DL 
Colorado: UA* 
Denver : UA* 
Miami : PA* 
New York : TW, PA, LH 
Washington: UA* 
(*) Plane change at an Intermediate point TABLE A 
BRUSSELS Boston: SN 
Chicago: SN, AA, UA* 
Los Angeles: AA* 
Miami : AA* 
New York : PA, AA, TW, SN, TK, UA* 
Ralelgh/Durham: AA* 
San Diego: UA* 
San Francisco: AA, UA* 
Seattle: UA* 
Washington TW* 
COLOGNE 
New York : LH 
COPENHAGEN -59 -
Anchorage JL (onllne stopover traffic only) 
Atlanta DL 
Chicago: SK 
Detroit : TW* 
Los Angeles SK 
Miami : FF 
MI I waukee : TW* 
New York : FF, TW, SK 
Seattle : SK 
DUBLIN 
Atlanta: DL 
Boston: El 
Chicago: DL*, El 
CI nc Ina tt I : DL 
Dal las : DL* 
Los Angeles: DL* 
New York : El 
Orlando: DL 
San Francisco DL 
DUSSELDORF 
Anchorage: JL (onllne stopover traffic only) 
Chicago: LH, AA (operated by LH aircraft) 
Los Angeles: LT 
MI am I : LT ' LH 
New York : LH 
San Francisco: LT 
FRANKFURT 
Albuquerque DL* 
Atlanta: LH, DL PA* 
Austin: DL* 
Baltimore : TW, us 
Boston: NW, LH 
Charlotte: LH, US* 
Chicago: UA, AA, LH 
Cincinnati : DL 
Cleveland: us•, co• 
Dallas DL, LH, AA 
Dayton: us• 
Denver : DL*, UA*, co• 
Detroit : NW 
EL Paso: DL* 
Fort Lauderdale: DL* 
Fort Myers: DL* 
Houston: DL*, PA*, LH, CO* 
lndlanapolls: US* 
Jacksonville: Fl, PA* 
Kansas City: DL* 
Las Vegas: DL* -60 -
Los Angeles: DL*, AA*, UA*, TW*, LH, us•, CO*, NZ 
Memphis: DL* 
Miami',: DL*, LT' PA, LH 
MI I waukee : NW* 
Mlnneapol is : NW 
Nashv I I le : DL* 
New Orleans: DL* 
New York : PA, TW, LH, co, PK 
Oklahoma City : DL* 
Orlando: DL 
Philadelphia: LH, us 
Phoenix : DL 
PI ttsburg : us 
Raleigh: US*, DL* 
Salt Lake City: DL* 
San Antonio: DL* 
San Diego: DL* 
San Francisco: DL*, LH, AA, TW, UA*, PA, us•, CO* 
San Juan: LH 
Sarasota: DL* 
Seattle : NW 
St Louis: TW 
Tampa : DL* 
Tucson: DL* 
Tulsa: DL* 
Washington: TW*, UA, PA, LH w Palm Beach : DL* 
GLASGOW Boston: NW 
Chicago: AA 
Dal las : AA 
Loa Angeles: AA* 
New York : NW, BA 
San Francisco: AA* 
San Jose: AA* 
HAMBURG Atlanta: DL 
New York: PA, UA*, LH 
LISBON 
Boston TP 
New York : PA, TW, TP 
LONDON -61 -
Anchorage: BA, JL (onllne stpover traffic only) 
Atlanta : DL, BA 
Baltimore: TW 
Boston: NW, AA, vs, BA 
Charlotte : us 
Chicago: AA, BA, UA*, CO* 
Clnclnatt I : DL 
Cleveland: PA, CO* 
Colorado: UA* 
Dallas: AA, co•, BA 
Denver : AA*, UA*, co, DL* 
Detroit : PA, NW*, BA 
Honolulu: co 
Houston: BA, co 
Kansas City: DL*, TW* 
Los Angeles: AA, UA, CO*, BA, NW*, vs, TW, DL*, NZ 
Memphis: DL* 
Miami : UA*, AA, PA, BA, vs, DL* 
MlnneaPolls: NW 
Nashville: AA*, DL* 
New Orleans : us•, co•, DL* 
New York: AA, UA, TW*, BA, vs, co, Al, LY, KU 
Norfolk : us• 
Orlando: AA*, TW*, US*, PA*, DL*, BA, UA* 
Phlladelphla: TW, BA 
Phoenix : co•, DL* 
Pittsburgh : BA 
Portland Ord: CO* 
San Antonia: co• 
Raleigh/Dur : us• 
St Louis: TW 
Salt Lake City : DL* 
San Antonio: co• 
-62 -
LONDON (cont'd) 
San Diego: UA*, TW* 
San Francisco: AA*, TW, UA, BA, co•, DL* 
San Jose: AA* 
San Juan: AA*, BA 
Seattle: UA, CO*, BA 
Tampa: US*, DL*, PA*, BA, CO* 
Washington: UA, CO*, BA 
LUXEMBOURG 
Baltimore: Fl 
New York: Fl 
Orlando: Fl 
.LYQti 
New York AF 
MADRID 
Anchorage: JL (onllne stopover traffic only) 
Boston: TW* 
Chicago: UA* 
Dal las : AA 
Loa Angeles: 18, TW*, AA* 
Miami : PA*, AA, 1B, AM 
New York : PA, TW, 1B 
San Diego: AA* 
San Francisco: AA* 
San Juan : 1B 
Washington: UA, TW* 
MANCHESTER 
Atlanta: DL 
Chicago: AA 
Dallas/FTW: AA*, DL* 
Los Angeles: DL* 
Miami : AA* 
Nashv I I le : AA* 
New York : AA, BA 
Orlando: DL* 
Raleigh: AA* 
San Juan: AA* 
MILAN 
Boston: AZ/US 
Chicago: AZ, AA 
Dal las : AA* 
Los Angeles TW*, AZ/US 
Miami : AZ 
Nashv I I le : AA* 
New York : PA, TW, AZ 
San Francisco: PA*, TW* 
MUNICH Atlanta: DL 
Chicago: UA*, TW*. AA, LH 
Cincinnati : DL* 
Da 11 as/FTW : DL* 
Los Angeles : UA*, DL* 
Miami : PA*, LH 
New York : UA*, TW*, PA, LT, LH 
Orlando: DL* 
St Louis: TW* 
Seattle : UA* 
Tampa: DL* 
,NJ,g_ 
Honolulu: PA* 
Loa Angeles: PA 
New York: PA, AF 
PARIS -63 -
Anchorage: AF, JL (online stopover traffic only) 
Atlanta: DL, TW*, AA* 
Boston: TW, CO*, AF 
Chicago: UA, TW*, AA, AF 
Cincinnati : DL 
Cleveland: CO* 
Dallas FTW: AA, DL* 
Denver : CO*, DL* 
Detroit : NW 
Greenville: DL* 
Houston: CO*, AF 
Jackaonvllle: TW* 
Kansas City: DL*, 
Loa Angeles: UA*, PA*, AA*, TW, DL*, NW, AF 
Memphis: DL* 
Miami : PA, UA*, DL*, AA*, AF, AM, QN 
Naahvllle: DL*, AA* 
New Orleans: DL* 
New York : PA, TW, co, AA, FF, AF, PK 
Phoenix : TW*, DL* 
Portland: TW* 
Raleigh: AA 
San Diego: UA*, AA 
San Francisco: TW*, UA*, UT, PA*, DL*, AA* 
San Juan: AA* 
Salt Lake City: DL* 
Seattle : TW* 
St Louis: TW 
Tampa : DL* 
Washington: PA*, CO*, UA, TW, AF 
PQNTA QELGAQA 
Boston: TP 
GME. -64 -
Anchorage: JL Conllne stopover traffic only) 
Boston: TW, AZ/US 
Chicago: AZ 
Loa Angeles: TW*, PA*, AZ/US 
Miami : AZ, PA* 
New York: TW, PA, AZ 
St Louis: TW* 
San Diego: TW* 
San Francisco: TW* 
Washington: TW* 
SHANNON 
Atlanta: DL 
Boston: El 
Chicago: DL*, El 
Cincinnati : DL* 
Dal las : DL* 
Loa Angeles: DL* 
Miami : SU 
New York: El 
Orlando: DL* 
San Francisco DL* 
Washington: SU 
STUTTGART 
Atlanta: PA*, DL 
Dal las : DL* 
Jacksonville: PA* 
Loa Angeles: DL* 
Miami : DL* 
New York: PA* 
Orlando: DL* 
San Francisco DL* 
Tampa: DL* 
JERCEIRA 
Boston: TP 
VENICE 
New York AZ* 
-65 -
NORTH ATLANTIC OPERATIONS BY CARRIER -August 91 
EC CARRIERS 
KL 
OA 
1B 
LH 
SN 
SK 
El 
LT 
BA 
TP 
vs 
AF 
AZ 
IW 
UT 
us CARRIERS 
DL 
TW 
NW 
us 
co 
AA 
PA 
FF 
UA 
THIRD CARRIERS 
JL 
RO 
PK 
RJ 
TK 
NZ 
Al 
LY 
KU 
Fl 
AM 
QN 
· SU ROUTES 
8 
1 
4 
22 
3 
4 
6 
5 
20 
4 
4 
10 
11 (4 code sharing+ 1 a/c change) 
2 Cop. subj. to confirmation) 
1 
ROUTES 
21 + 79 (with an a/c change) 
24 + 33 ( N N ) 
13 + 4 
7 (4 code-sharing)+ 12 (a/c change) 
6 + 27 Ca/c change) 
27 • 29 ( N N ) 
21 + 22 ( N N ) 
3 
9 + 29 ( N N ) 
ROUTES 
7 (onllne stvr tfc only) 
2 
3 
1 
1 
2 
1 
1 
1 
3 
2 
1 
2 TABLE B 
-66 -
TABLE C 
EC AIRLINES ESTIMATED CAPACITY SHARES ON US-EC ROUTES, JUNE 1882 
I I 10X 20% 
Source AVMARK I I 
1Netherl 
1c.reece sax 
I Italy 54X 
1scandanavla 51X 
IUK 45X 
1Total 44X 
1Geruny 39X 
1aelgh• 36X 
1spaln 31X 
1Portugal 28X 
1France 16X 
I I I I I 30% 40X SOX 60X 70X reland 74X 
ande en 
-67 -
TABLE D 
EC GATES BY EC AND us OPERATORS -August 91 
g 1m. 
AMS KL DL, NW, CO, TW, PA, 
ATH OA PA, TW 
BCN 18 PA, TW 
BER LH DL, UA, PA, TW 
BAU SN PA, TW, UA, AA 
CGN LH 
CPH SK DL, FF, TW 
DUB El DL 
DUS LH, LT AA 
FRA LH, LT PA, DL, NW, UA, AA, co, TW, us 
GLA BA NW, AA 
HAM LH PA, UA, DL 
LIS TP PA, TW 
LON (LHR + LGW) BA, VS PA, TW, us, DL, CO 
UA, AA, NW 
LYS AF 
LUX Fl 
MAD 18 PA, TW, UA, AA 
MAN BA DL, AA 
MUC LH, LT DL, UA, TW, AA, PF 
MXP AZ AA, us. TW, PA 
NCE AF PA 
PAR CCDG+oRY) AF, IW PA, TW, co, AA, FF, 
UA, DL, NW 
POL TP 
ROM AZ us. TW, PA 
SNN El DL 
STR PA, DL 
TER TP 
VCE AZ 
28 Gates 27 used by 22 used by 
EC carriers US carr lers 
-68 -
EFTA GATES BY EFTA AND us OPERATORS -August 91 
EFTA llS, 
GVA SR TW, PA 
GOT FF 
HEL AY PA 
OSL SK PA, FF 
REK Fl 
STO SK M, TW, PA, FF 
VIE OS TW, PA 
ZRH SR AA, TW, PA 
8 Gates 7 used by 5 7 used by 4 
EFTA carr lers US carriers 
-69 -
TABLE E 
us GATES BY EC AND us OPERATORS -August 91 
.U.S. & 
ABQ (Albuquerque) TW, DL 
ANC (Anchorage) BA, BF 
ATL (Atlanta) DL, TW, AA, PA LH, KL, BA 
AUS (Austin) DL 
BWI CBaltl1110re) TW, us KL 
BOS (Boston) TW, co. US, NW, SN, AF, TP, El 
AA AZ, VS, BA, LH 
CLT (Charlotte) us LH csubJ. gvt apr) 
CHI (Chicago) AA, UA, DL, co LH , E I , AZ , BA , 
TW KL, SK, SN, AF 
CVG (Cincinnati) DL 
CLE (Cleveland) us, co, PA cos (Colorado) UA 
DFW (Dallas FTW) AA, DL, co LH, BA 
DAY (Dayton) us 
DEN (Denver) DL, UA, co. AA 
DTT (Detroit) NW, PA BA 
ELP (El Paso) DL 
FLL (Fort Lauderdale) DL 
FMY (Fort Myers) DL 
GSP CGreenv I I le) DL 
HNL (Honolulu) co, PA 
HOU (Houston) co, DL, PA BA, KL, AF, LH 
IND C lndlanapol ls) us 
JAX (Jacksonv I I le) PA, TW 
MKC (Kansas City) DL, TW 
LAS (Las Vegas) DL 
LAX (Los Angeles) DL, AA, UA, TW, LH, LT, AF, IB us, co, PA, NW SK, AZ, KL, BA 
VS, IW 
MEM (Memphis) DK 
MIA (Miami> DL, PA, AA, UA, LT, LH, AF, IB 
FF AZ, BA, vs 
MKE (Ml lwaukee) TW, NW 
MSP CMlnneapol ls) NW KL 
-70 -
BNA (Nashv I I le) AA, DL 
MSY (New Orleans) DL, us. co 
NYC (New York) AA, NW, UA, TW BA, EI, vs. LH, LT, co, PA, FF LT, OA, AZ, KL, TP, 
SK, 18, AF, SN, 
ORF (Norfolk) us 
ORL (Orlando) DL, AA, TW, US BA, KL 
PA, UA 
OKC (Oklahoma City) DL 
PHL (Ph I lade lph la) us, TW LH, BA 
PHX (Phoenix) co, DL, TW 
PIT (Pittsburgh) us BA 
POR (Portland OR) TW, co 
RDU (Raleigh) us. AA, DL 
SAT (San Antonia) DL, co 
SAN (San Diego) DL, UA, AA, TW 
SFO (San Francisco) AA, TW, UA, co BA, LT, UT, IW 
DL, PA, US LH 
SJC (San Jose) AA 18 
SJU (San Juan) AA BA, 18, LH 
SLC (Salt Lake City) DL 
SRQ (Sarasota) DL 
SEA cseatt le) NW, UA, TW, co SK, BA 
STL (St Louis) TW 
TPA (Tampa) DL, us, PA, co BA 
TUS (Tucson) DL 
TUL (Tulsa) DL 
WAS (Washington) UA, CO, PA, TW BA, AF, LH 
PBI CW Palm Beach) DL 
55 Gates 54 used by US 22 used by EC 
carriers carriers 
-71 -
BILATERAL ARRANGEMENTS 
EUROPEAN AIRLINES IN THE US -AUGUST 1991 
eountrv 
1) AUSTRIA 
2) BELGIUM 
3) FINLAND 
4) FRANCE 
5) GERMANY Rights Granted 
New York+ one 
optional pt. 
1) New York 
Boston 
Chicago 
Atlanta 
Detro It 
2) Pts In the US 
(a I I-cargo 
serv. only) 
New York 
Seattle 
Anchorage 
One pt in 
Ca Ii fornla 
New York 
Washington 
Boston 
Chicago 
Phi I ade I ph I a 
Houston 
Los Angeles 
Anchorage 
Miami 
San Francisco 
San Juan 
Anchorage 
Atlanta 
Boston 
Chicago 
Da I las 
Fairbanks (cargo) 
Houston 
Los Angeles 
Miami 
New York 
Phi ladelphla 
San Francisco 
San Juan 
Washington 
(*) Subject to government approval Rights Used 
New York 
Boston 
Chicago 
New York 
Los Angeles 
New York 
Anchorage 
Boston 
Chicago 
Houston 
LOS Angeles 
Miami 
New York 
San Francisco 
Washington 
Atlanta 
Boston 
Charlotte(*) 
Chicago 
Dal las 
Houston 
Los Angeles 
Miami 
New York 
Philadelphia 
San Francisco 
San Juan 
Washington TABLE F 
-72 -
8) GREECE New York New York 
or 
Boston/Chicago 
or 
New York/Chicago 
or 
any one other 
US point 
7) IRELAND New York New York 
Boston Boston 
Chicago Chicago 
Los Angeles 
8) ITALY 1) New York New York 
Boston Boston 
Detro It Chicago 
p h I I a de I ph I a Loa Angeles 
Washington Miami 
Chicago 
Los Angeles 
or 
San Francisco 
2) New York 
Boston 
Chicago 
ca I I-cargo 
services only) 
9) LUXEMBOURG None None 
10) NETHERLANDS New York Atlanta 
Chicago Baltimore 
Los Angeles Chicago 
Houston Houston 
Anchorage Loa Angeles 
At I anta MlnneaPol la 
Orlando New York 
Orlando 
11) PORTUGAL New York New York 
Boston Boston 
Los Angeles 
Miami or 
San Juan 
12) SCANDINAVIAN New York Chicago 
COUNTRIES Chicago Los Angeles 
Seattle New York 
Los Angeles Seattle 
Anchorage 
San Juan 
-73 -
13) SPAIN New York New York 
Boston San Juan 
Washington Miami 
Baltimore Los Angeles 
San Juan 
Miami 
Chicago 
Los Angeles 
1-4) SWITZERLAND New York New York 
Boston Boston 
Chicago Chicago 
Anchorage Atlanta 
Atlanta Los Angeles 
Los Angeles Phi ladelphla 
15) UK 1) Anchorage Anchorage 
Atlanta Atlanta 
Boston Boston 
Chicago Chicago 
Dal las FW Dal las FW 
Detroit Detro It 
Houston Houston 
Los Angeles Los Angeles 
Miami Miami 
New York New York 
Newark Newark 
Orlando Orlando 
Phi ladelphla P"' I lade lph la 
San Francisco San Francisco 
Seattle Seattle 
Washington Washington 
San Juan San Juan 
Tampa Tampa 
Pittsburg PI ttsburg 
Denver 
San Diego 
One other us pt 
to be nominated None 
2) Pts In US 
(a 11 cargo 
services only) 
-74 -
BILATERAL ARRANGEMENTS 
US AIRLINES IN EUROPE -AUGUST 1991 
countrv 
1) AUSTRIA 
2) BELGIUM 
3) FINLAND 
4) FRANCE 
5) GERMANY 
8) GREECE 
7) IRELAND 
8) ITALY 
9) LUXEMBOURG 
10) NETHERLANDS 
11) PORTUGAL 
12) SCANDINAVIAN 
COUNTRIES Rights Granted 
Vienna 
Pts in Belglum 
Pts in Finland 
Paris 
Nice 
Lyon 
Marseille 
Pts In Germany 
Athens 
Shannon 
Dub Ii n (Via 
Shannon) 
1) Rome 
Ml Ian 
(Combination & 
al I cargo ser.) 
2) Turin 
or 
Pisa 
or 
Naples 
Ca 11 cargo 
serv. only) 
None 
Any pts in 
Netherlands 
Lisbon 
Azores 
Copenhagen 
Oslo 
Stockholm 
Gothenburg 
Bergen 
St avenger Rights Used 
Vienna 
Brussels 
Helslnkl 
Par Is 
Nice 
Berl In 
Dusseldorf 
Hamburg 
Munich 
Stuttgart 
Frankfurt 
Athens 
Shannon 
Dub I In 
Rome 
Ml Ian 
None 
Amsterdam 
Lisbon 
Copenhagen 
Oslo 
Stockholm TABLE G 
13) SPAIN 
14) SWITZERLAND 
15) UK Madrid 
Barcelona 
Malaga 
Palma 
Zurich 
Geneva 
Basie -75 -
1) London 
Manchester(*) 
Prestwick 
Glasgow 
2) Pts in the UK 
(a 11 cargo 
serv. only) 
(*) provisional and for use on Chicago only Madrid 
Barcelona 
Zurich 
Geneva 
London 
Manchester 
Glasgow 
-76 -
FIFTH FREEDOM RIGHTS PURSUANT TO BILATERAL AGREEMENTS TABLE H 
US Al r I Ines European Alrllnes 
eountrv Rights Granted Rights used Rights Granted Rights Used 
AUSTRIA 
BELGIUM 
FRANCE 
GERMANY 2 Intermediate VIE-FRA 
pte except VIE-BUD 
PAR/DUS/MUC 
Any lntermed. BRU-BER 
and beyond pts BRU-GVA 
1) Between Paris 
and Switzerland 
Italy, Greece, 
Turkey, Egypt, 
Near East, 
Pakistan, India, 
Ceylan, Burma, 
Thailand, Hanoi, 
China, and beyond 
2) Between Nice/ PAR-ATH 
PAR-GVA 
PAR-MUC* 
PAR-ROM 
PAR-TLV 
PAR-ZRH 
Marse I I le, and 
Spain, Greece, 
Italy, Switzerland, 
Albania, Budapest, 
Bulgaria, Roumanla, 
Turkey, Yugoslavia, 
Pakistan, India, 
Ceylan, Burma, 
Thailand, Hanoi, 
Singapore, Jakarta, 
China, Macao, 
Hong Kong, Mani Ila, 
and beyond 
3) Between Paris** 
and Brussels**, 
Colognes and 
Maastrlcht** 
Any Intermediate 
and beyond pts FRA-BEG 
FRA-BUM 
FRA-BUH 
FRA-KHI 
FRA-DBV 
FRA-IST 
FRA-LED 
FRA-LON 
FRA-MOW 
FRA-NBO 
FRA-PRG 
FRA-KRK 
(*) onllne stpvr trf only 
(**) cargo only Between one 
Intermediate pt 
and the 2nd pt 
In the us 
Intermediate pts 
and beyond pts 
In Canada and/or 
Mexico 
Intermediate pte HOU-MEX 
over N. Atlantic ANC-TYO* 
New York-Mexico 
Montreal-Chicago 
Houston-Mexico 
Any Intermediated 
And beyont pts DFW-MEX 
DFW-ATL* 
HOU-CLT* 
ANU-SJU 
SXM-SJU 
PHL-YMQ 
ATL-DFW* 
GREECE 
IRELAND 
ITALY 
LUXEMBOURG Rome-Athens 
Athens-Cairo 
Athens-Tel Aviv -77 -
FRA-RUH 
FRA-WAW 
FRA-ATH* 
FRA-ANK 
FRA-BUD* 
FRA-VIE 
HAM-LON 
MUC-LON 
MUC-PAR* 
STR-AMS 
STR-DBV 
NUE-BER 
ATH-ROM 
ATH-FRA* 
ATH-PAR* 
Any points DUB-SNN* 
beyond Shannon 
1) Between I ta I y 
and intermediate 
pts in Ireland, 
UK, France, FRG 
Switzerland, 
Portugal, Spain, 
and 
2) Between Rome 
and beyond pts 
in Greece, 
Turkey, Lebanon, 
Israel, Syria, 
Egypt, 
Saudi Arabia, ROM-ATH 
ROM-PAR 
ROM-CAI 
ROM-IST 
Iran, Pakistan, 
India, Sri Lanka, 
Burma, Thal land, 
Malaysia, CambodJa, 
Vietnam, PR China, 
Hong Kong 
None None 
NETHERLANDS Any intermediate AMS-STR 
and beyond pts AMS-HAM 
(*) onllne conex/stpvr trf only None 
Intermediate 
pts In France 
or Spain, 
Ireland or 
Portuga I, UK, 
and pt In 
Canada 
None 
Montreal­
Houston None 
PORTUGAL -78 -
Beyond pts LIS-BCN 
on Med . I s I ands 
and In countries 
bordering Med. 
sea, Africa North 
of Equator, Kenya, 
Uganda, Tanzania, 
Near/Middle/Far 
East 
SCANDINAVIAN Any Intermediate OSL-HEL 
COUNTRIES and beyond pts CPH-STO 
OSL-STO 
CPH-LON* 
SPAIN 1) Between BCN-LIS 
Azores/Lisbon 
and 
Madrid/Barcelona 
2) Between 
Madrid/Barcelona 
and pts in 
South of France 
Italy, Greece, 
Algeria, Tunisia, 
Libya, Egypt, 
Uganda, Kenya, 
Tanzania, Turkey, 
Israel, Lebanon, 
Jordan, Iraq, 
Iran, Syria, 
Saudi Arabia, 
Arabian Peninsula, 
Afghanistan, 
Pakistan, India 
(*) onllne conex trf only 1) Between an 
Intermediate 
pt In Canada 
and Los Angeles 
2) Between Miami 
and beyond pts 
In Caribbean/ 
Centr.Amerlca 
or 
between San 
Juan and Caracas/ 
beyond pts In 
countries on the 
west coast of 
South America 
1) Anchorage-Tokyo 
2) Between Intermediate 
pts In part of FRG, 
UK, . I re I and , Ice I and 
Azores, Canada 
(Labrador, 
Newfoundland, 
Quebec) and 
alternate terminal 
pts New York 
and Chicago 
Between 
San Juan 
and pts 
In Haiti 
Jamaica 
Mexico 
Guatamala 
Honduras 
Nicaragua 
El Salvador 
Costa Rica 
Panama 
Trinidad 
Curacco 
Venezuela 
Colombia 
Equador 
Peru 
Bol lvla 
Chi 11 SJU-SJO 
-79 -
UK 1) Between London LON-FRA 1) Between DET-YMQ 
and Glasgow/ LON-HAM Boston, TPA-BDA 
Prestwick on LON-MUC Chicago, ANC-OSA 
the one hand LON-BER Da 11 as, ANC-TYO 
and Frankfurt, LON-CPH* Detroit, ORL-BDA 
Ber I in, Hamburg New York 
and Munich Ph I I ade I ph I a 
on the other and Washington 
on the one hand 
and Canada 
on the other 
2) Prestwick- 2) Between 
Oslo Boston, 
3) Between Detro It, 
London and New York, 
Turkey, Lebanon Phlladelphla, 
Syria, Iran, and 
Pakistan, New Washington on 
Delhi, Calcutta, the one hand 
Thai I and and and Mexico City 
Japan on the other 
4) Prestwick- 3) Between 
Shannon Atlanta 
and San Juan 
on the one hand 
and Venezuela, 
Colombia & Peru 
on the other 
4) Between 
San Juan and 
other pts In s. America 
5) Between 
Anchorage 
and Japan 
(*) onllne conex trf only 
Source: AEA, ABC -August 1991 
ROUTE 
BCN-LIS 
BER-BRU 
BER-HAM 
BER-HAJ 
BER-LON 
BEA-NUE 
BEA-GWT 
COP-LON 
PAA-ATH 
PAR-MUC 
PAR-ROM 
FRA-ATH 
FRA-LON 
LON-HAM 
LON-MUC 
DUB-SNN 
STA-AMS· 
STA-FAA 
HAM-AMS 
ATH-AOM -80 -
5TH FREEDOM OPERATIONS IN THE EC AUGUST 1991 
CARRIER 
PA 
TW 
PA 
PA 
UA 
PA 
PA TABLE I 
DL (int'I onllne connections traffic only) 
TW (onllne connections traffic only) 
TW (onl ine connections traffic only) 
TW 
PA (onl ine connections/stopover traffic only) 
UA,TW 
UA 
UA 
DL (onl ine connections/stopover traffic only) 
DL (onl ine connections/stopover traffic only) 
PA (online connectlons/stoPover traffic only) 
PA 
TW 
20 ROUTES, 4 CARRIERS 
Route 
BEG-FAA 
BEG-VIE 
BEG-BUH 
BAU-GVA 
BUH-FRA 
BUD-FRA 
BUD-VIE 
ROM-CAI 
DBV-VIE 
FAA-VIE 
FRA-ANIC 
FAA-BOM 
FRA-DEL 
FRA-DBV 
FRA-IST US AIRLINES OPERATING SERVICES FROM EUROPEAN AIRPORTS 
(excluding 5th freedom operations within the EC) 
Carrier 
PA 
PA 
PA 
TW 
PA 
PA (onl lne connections/stopover traffic only) 
PA 
TW 
PA 
TW 
PA 
PA 
PA 
PA 
PA 
-81 -
FRA-KHI PA 
FRA-KRK PA 
FRA-LED PA 
FRA-MOW PA 
FRA-PRG PA 
FRA-VIE TW 
FRA-NBO PA 
FRA-RUH PA 
FRA-WAW PA 
OSL-HEL PA 
OSL-STO PA 
PAR-GVA TW 
PAR-TLV TW 
PAR-ZRH TW 
STO-COP TW 
IST-ROM TW 
STR-DBV PA 
BUC-BEG PA 
H B2Yill 2 Carrier~ 
A1r11ne Des1anat1ons 
AA American Airlines 
AF Air France 
Al Air India 
AM Aeromexlco 
AV Flnnalr 
AZ Al Ital la 
BA British Airways 
CO Continental Airlines 
DL Delta Alrllnes 
El Aer Llngus Pie 
FF Tower Air 
Fl lcelandalr 
18 Iberia 
IW Mlnerve 
JL Japan Alrl Ines 
KL KLM 
KU Kuwait Airways 
LH Lufthansa 
LT LTU 
LY El Al Israel Alrl Ines 
NW Northwest 
NZ Air New Zealand 
OA Olympic 
PA Pan Am 
PK Pakistan International 
QN Air Outre Mer 
RJ Royal Jordanian 
RO Tarorn 
SK SAS 
SN Sabena 
SU Aeroflot 
TK Turkish Alrl Ines 
TP TAP 
TW TWA 
UA United Airlines 
US USAlr 
UT UTA 
VS Virgin Atlantic Airways -82 -
-83 -
CITY' CODES LYS: Lyon 
MAD: Madrid 
MAN: Manchester 
ABQ: Albuquerque MEM: Memphis 
AMS: Amsterdam MEX: Mex lco 
ANC: Anchorage MKC: Kansas Cl ty 
ANK: Ankara MKE: Ml lwaukee 
ANU: Antigua MIA: Miami 
ATH: Athens MOW: Moscow 
ATL: Atlanta MSP: Mlnneapol ls 
AUS: Austin MSY: New Orleans 
BCN: Barcelona MUC: Munich 
BOA: Bermuda MXP: Ml Ian 
BEG: Belgrade NBO: Nairobi 
BER: Ber I In NCE: Nice 
BNA: Nashville NUE: Nuremberg 
BOM: Bombay NYC: New York 
BOS: Boston OKC: Oklahoma City 
BRU: Brussels ORF: Norfolk 
BUD: Budapest ORL: Orlando 
BUH: Bucharest OSA: Osaka 
BWI: Baltimore OSL: Oslo 
CAI: Cairo PAR: Par Is 
CGN: Cologne PBI: w. Palm Beach 
CHI: Chicago POL: Ponta Delgada 
CLE: Cleveland PHL: Ph I I ade I ph I a 
CLT: Charlotte PHX: Phoenix 
COS: Colorado PIT: PI ttsburgh 
CPH: Copenhagen POR: Portland OR 
CVG: Cincinnati PRG: Prague 
DAY: Dayton RDU: Raleigh 
DBV: Dubrovnik REK: Reykjavik 
DEN: Denver ROM: Roma 
DFW: Dal las FTW RUH: Riyadh 
OTT: Detroit SAN: San Diego 
DUB: Dub I In SAT: San Antonio 
DUS: Dusseldorf SEA: Seattle 
ELP: El Paso SFO: San Francisco 
FLL: Fort Lauderdale SJC: San Jose 
FMY: Fort Myers SJO: San Jose, Costa Rica 
FRA: Frankfurt SJU: San Juan 
GLA: Glasgow SLC: Sa It Lake City 
GOT: Gothenburg SNN: Shannon 
GSP: Greenvl I le SRQ: Sarasota 
GVA: Geneva STL: St. Louis 
GWT: Wester land STO: Stockholm 
HAJ: Hannover STR: Stuttgart 
HAM: Hamburg SXM: Saint Maarten 
HEL: Helsinki TER: Tercerla 
HNL: Honolulu TLV: Tel Aviv 
HOU: Houston TPA: Tampa 
IND: lndlanapol is TUL: Tulsa 
1ST: Istanbul TUS: Tucson 
JAX: Jacksonv i I I e TYO: Tokyo 
JJY: Ju I I anehaab VCE: Venice 
KHI: Karachi VIE: Vienna 
KRK: Krakow WAS: Washington 
LAS: Las Vegas WAW: Warsaw 
LAX: Los Angeles YMQ: Montreal 
LED: Leningrad ZRH: Zurich 
LIS: Lisbon 
LON: London 
LUX: Luxembourg 
-84 -
Annex V 
AGREEMENT ON AIR TRANSPORT 
.-•·:.--85 -
Annex V 
ON AIR TRANSFORT 
The Goverrunent of ard 
Goverrurent, hereinafter referred to as the "Contracting 
Parties", 
Being parties to the Convention on International Civil 
Aviation opened for signature at Oticago on the seventh day 
of Decesnrer, 1944, 
Desiring to prarote their mutual relations in the field of 
civil aviation aoo to conclude an agreernent, supplenentary to 
the said Convention, for the purpose of establishing air 
services bet~n arrl beyord their respective territories, 
Have aq reed as foll~ : 
-86 -
ARTICT..E l 
Definitions 
1. For the purpose of this Agreement 
(a) the tenn "Convention" means the Qmvention on 
International Civil Aviation opened for signature at 
Clicago on t.,e seventh day of December, 1944 ard 
includes any Annex adopted urrler Article 90 of that 
Convent ion arrl any atrerrlrnent of the Annexes or of the 
Convention under Articles 90 arrl 94 thereof so far as 
those Annexes and atren::hrents have been approved by lx>th 
Contracting Parties; 
(b) the teon "aeronautical auth::>rities" 1reans, Ln the case 
of , the Minister for 
arrl, in the case of 
the Minister for 
or, in ooth cases, any person or tx:::dy 
authorised to perfonn any functions being the 
resp:,nsibility of the said autoorities; 
(c) the tenn "designated airline" 1reans an airline which 
has been designated ard autrorised in acc:ordance with 
the provisions of Article 3 of this Agreerent; 
(d) the tenn "tariffs" 1reans the prices to be paid for the 
carriage of passengers, baggage ard cargo ard the 
conditions urder which trose prices apply, inclLrling 
prices and conditions for agency ard other auxiliary 
services but excluding rernuneration or corditions for 
the carriage of mail; 
(e) the tenn "capacity" means: 
( L) i.n relation to an aircraft, the payload of that 
aircraft available on a route or section of a route; 
, ----. -87 -. 
(ii) in relation to a specified air service, t?ie 
capacity of the a·ircraft used on such service, 
multiplied by the frequency q,erated by such aircraft 
over a given perioo on a route or a sect ion of a route; 
( f) the tenns "territory", "air service", "international 
air service", "airline", "stop for non-traffic pu.qx:>ses" 
have the ineani~ respectively assigned to them in 
Articles 2 and 96 of the Convent ion. 
2. The Annex to this Pqreement shall fonn an integral part of 
the Agreenent and any reference to the Agreenent shall be 
understoo:i to inch.v:le the _Annex, except where otherwise 
provided for. 
ARTICLE 2 
Grant of Traffic Rights 
l. Each Contracting Party grants to the other Contracting Party 
the rights specified in this Agreerent for the purp:,se of 
establishing scheduled international air services on the 
routes spec if ied in the Annex hereto. Such services and 
routes are hereinafter called the "agreed services" arrl the 
"specified routes" respectively. 
2. The airline or airlines designated by each Contracting Party 
shall enjoy the following rights, subject to the relevant 
provisions of this Agreement: 
(a) to fly, without laming, across the territory of the 
other Contracting Party; 
(b) to 11\.'ike steps in the territory of the other 
Contracting Party for non-tr-aff ic purposes; arrl 
-88 -
(c) in the territory of the other Contracting Party, while 
operating an agreed service on a specified route, the r-ight 
to anbark ard disanbark international traffic in passengers, 
cargo arrl mail, separately or in conbination. 
3. Airlines of each Contracting Party not designated urrler 
Article 3 of this Agreanent shall also enjoy the rights 
specified in paragraphs 2(a) and (b) of this Article. 
4. Nothing in this Agreenent shall be deemed to a:>nfer on the 
designated airline or a~rlines of one Contracting Party the 
privilege of taking on lx>ard, in the territory of the other 
Contracting Party, passengers, cargo am mail carried for 
hire or reward and destined for amther point in the 
territory of that other Contracting Party. 
ARTICT£ 3 
Designation of Airlines 
l. Each Contracting Party shall have the right to designate rn 
writing to the other Contracting Party an airline or 
airlines for the purpose of operating the agreed services on 
the specified routes. On receipt of such designation, t:1e 
other aeronautical autoori ties sha 11, subject to the 
provisions of paragraphs 2 ard 3 of this Article, witrout 
delay grant to the designated airline or airlines the 
appr-opiate oper-ating authorisations. 
2. The aeronautical authorities of either Contracting Par:·:· 11\3y 
r-equire an airline or airlines designated by the other­
Contracting Party to satisfy the.in that it is qualified to 
fulfil, while operating the agreed services, the conditions 
prescr-ib?d urder-the laws arrl regulations nonnally arrl 
reasonably applied to the operation of international au· 
services by such authorities in confonni ty with the 
provisions of the Convention. 
-89 -· 
3. Each Contracting Party shall have the right to refuse to 
accept the designation-of an airline or airlines fran the 
other Contracting Party or to withh:>ld or revoke the grant 
to such an airline or airlines of the rights specified in 
Article 2 of this ~reeirent or to i.up,se such ronditions :1s 
it may dean necessary on the exercise by the designated 
airline or airlines of those rights, in any case w~re it is 
not satisfied that the airline or airlines in question have 
their central adJninistration ard principal place of business 
in the territory of the other Contracting Party, that the 
majority of their shares are a.-med by nationals or by the 
Goverrurent of that other Contracting Party ard are 
effectively controlled by such nationals or Goverrurent. 
4. The designated airline or airlines, when so auth:>rised, 1ray 
canrence at any ti.Jre to operate the agreed SP.rJices in whole 
or in part, provided that the airline canplies with the 
applicable provisions of this Agreerent an:l that tariffs, 
estaplished in accordance with the provisions of Article 6 
of this Agreerent, are in force in respect of such services. 
5. F.ach Contracting Party shall have the right to revoke an 
operating auth=>risation or to susperrl the exercise of the 
rights specif ierl in Article 2 of this Agreement by the 
airline or airlines designated by the other Contracting 
Party or to i.Jrp:::>se such corrlitions as it 1ray deem necessary 
on the exercise of these rights: 
(a) in the case of failure by such airline or airlines to 
couply with the laws or regulations of the Contracting 
Party which has granted these rights, or 
(b) if the airline or airlines otherwise fail(s) to 
operate in aca:n-dance with the oorrlitions prescnced 
under this Agreement a.rd the Annex thereto. 
6. Unless imrediate revocation, suspension or i.J~sit ton of the 
conditions 1rentioned in paragraph 5 of this Article are 
--·-90 -
essential to prevent i.nfringerents of the laws or regulations 
referred to in paragraph S of t.ltls Article, such right shall be 
exercised only after consultation with the other O:>ntracting 
Party, in accxmiance with Article 15 of this Agreenent. 
ARTICLE 4 
capacity 
1. The capacity to be operated oo the agreed scheduled air 
sezvices shall bear close relationship, at a reasonable lead 
factor, to the desrard for the carriage of traffic .. 
originating in the territory of each O:>ntracting Party a.rd 
destined to the territory of the other 0:>ntracting Party. 
2. In order to achieve a fair am. equal treatJnent of the 
designated airlines, the airlines have to agree in gocrl ti.ire 
-, .. upon the frequencies of their scheduled services, the types 
of aircraft to be used ani the flight schedules, inclu:iing 
the days of operation as well as the esti.uated ti.mes of 
arrival ani departure. 
3. The schedules so agreed upon shall be suhnitted for approval 
to the aeronautical authorities of both 0:>ntracting Parties 
at lea.st thirty (30) days before the proposed date of their 
int.reduction. In special cases, this time lunit may be 
reduced subject to the oonsent of the said auth:>ri ties. 
4. If the designated airlines cannot agree on t.he schedules 
1rentioned al:x:>ve, the aeronautical authorities of the 
Cbntracting Parties shall e.rrleavour to settle the problen. 
5. Subject to the provisions of this Article, ro schedules 
shall CXJre into force, unless the aeronaut ica.l authorities 
of the Cbnt.cacting Parties have approved of them. 
-91 -
6. The schedules established for one season in accordance with 
the provisions of this· Article shall remain in force for 
corresporrling seasons unti_l new schedules have been 
established in accorcance with the provisions of this 
Article. 
ARTICLE S 
Provision of Statistics 
1. The aeronautical authorities of one Cl:>ntracting Party shall 
supply to the aeronautical authorities of the other 
Contracting Party, at their request, periodic or other 
staternents of statistics. 
2. Such staternents shall include all infonnation required to 
detennine the auount of traffic carried by that airline on 
t.b.e agreed services an:i the origin an:i destination of such 
traffic. 
ARTICLE 6 
Tariffs 
l. 'I'1e tariffs to be charged by the airline of one Contracting 
Party for the carriage to or fron the territory of the other 
Cl:>ntracting Party shall be established at reasonable levels, 
due regard being paid to all relevant factors including cost 
of operation, reasonable prof it ard characteristics of 
service, such as standards of speed ard accanrmation. 
2. The tariffs referred to in paragraph l of this Article shall 
be agreed upon by the designated airlines of both 
Contracting Parties. 
-92 -
3. 'The tariffs so agreed upon shall be subnitted for approval 
to the aeronautical authorities of the Contracting Parties 
at least thirty (30) days before the proposed date of their 
intrc:duction; in special cases this ti.me limit may be 
reduced, subject to the consent of the said autrorities. 
4. If the designated airlines cann:,t agr.:?e on any of these 
tariffs, or if for sane other reasons a tariff cannot t::e 
fixed in accordan:e with paragraph 2 of this A.rt icle, or if 
during the first fifteen (15) days of the thirty (30) days' 
pericrl referred to in paragraph 3 of this Article, the 
aeronautical autoorities of one Contracting Party give the 
aeronautical authorities of the other Contracting Party 
notice of their dissatisfaction with any tariff agreed upon 
in accordance with the provisions of paragraph 2 of this 
Article, the aeronautical authorities of the Ccntracting 
Parties shall errleavour to agree upon the tariffs. 
5. If ~~e aeronautical autoorities cannot agree on the 
approval of any tariff suhnitted to them under paragraph 3 
alx>ve or on the detennination of any tariff under paragraph 
4, the Contracting Parties shall eooeavour to agree upon the 
tariffs. 
6. :-.b tariff shall cone into force unless the aeronautical 
autoorities of either Contracting Party have approved of it. 
7. The tariffs established in acoortlance with the provisior.s of 
this Article shall rerain in force until new tariffs ha\~ 
teen established in accordance with the provisions of this 
Article. 
-93 -
ARTICLE 7 
Application of Laws arrl Regulations 
1. The laws arrl .regulations of a Contracting Party g0verning 
entry into an:i departure fran its territory of aircraft 
engaged in international air transp:,rt or the operation a.rrl 
navigation of such aircraft while within its territory shall 
apply to aircraft of the designated airline of the other 
Contracting Party. 
2. The laws arrl regulations of a Contracting Party governing 
entry into, stay in an:i departure fran its territory of 
passengers, crew, cargo am mail, such as fonnalities 
regarding passports, custans, currency an:i sanitary 
1reasures, shall apply to passengers, crew, ca...rgo and trail 
carried by the aircraft of the designated airline of the 
other Contracting Party while they are within the said 
territory. 
3. Certificates of ail"-Orthiness , certificates of canpetency 
and licences issued or rendered valid by one Contracting 
Party, ard still in force, shall t:e reccgnised as valid by 
the other Contracting Party for the purpose of operating the 
agreed services. 
4. F.ach Contracting Party reserves the right, however, to 
refuse to reccgnise, for the purpose of flights a.l::::ove tts 
own territory, certificates of carpetency arrl 1 icences 
granted to its own nationals or rendered val id by another 
State. 
-94 -
ARTICLE 8 
Investigation of Accidents 
l. In the case of a forced landing or accident of an aircraft 
of either Contracting Party within the territory of the 
other Contracting Party, the aeronautical autoori ties of the 
Contracting Party in whose territory the forced landing or 
accident takes place shall unnediately notify the 
aeronautical authorities of the other Contracting Party 
thereof, take unnediate steps to assist the crew ard the 
passengers, provide for the safety of the aircraft arrl mail, 
baggage arrl cargo on board and take necessary measures for 
an inquiry into the particulars an:i circumstances of the · 
forced landing or accident. 
2. 'Ihe aeronautical authorities of the Contracting Party 
conducting the inquiry into the particulars and 
circunstances of the forced larx:Hng or accident shall i.nfonn 
the aeronautical auth:>ri ties of the other Q:mtracting Party 
of the holding of the inquiry arrl the aeronautical 
autoorities of the other O::>ntracting Party shall be granted 
full facilities to be represented at the inquiry. The 
aeronautical authorities of the Contracting Party corducting 
the inquiry shall serrl to the aeronautical auth:>ri.ties of 
the other Contracting Party the rep::,rt of the inquiry as 
soon as it is available. 
ARTICLE 9 
Aviation Security 
1. In accordance with their rights and obligations urrler 
international law, the Contracting Parties reaff inn that 
their obligation to protect, in their mutual relati.onship, 
the security of civil aviation against acts of unlawful 
interference form.s an integral part of this Agreement. 
-95 -
2. 7he Cbntracting Pc;trt~es shall provide upon request all 
necessary assistance.to each other to pi;event acts of 
unlawful seizure of aircraft ard other unlawful acts against 
the safety of passengers, crew, aircraft, aiqx:>rts and air 
navigation facilities ard any other threat to aviation 
security. 
3. The Cbntracting Parties shall act in full c:onfonni ty with 
the provisions of the Convention on Offences and Certain 
other Acts Conni tted on Boa.rd Aircraft, signed at Tokyo on 
14 September 1963, the Convention for the Suppression of 
Unlawful Seizure of Aircraft, signed at nie Hague on 
16 Oecanber 1970 arrl the Convention for the Suppression of 
Unlawful Acts Against-the Safety of Civil Aviation, signed 
at t-bntreal on 23 Septenber 1971 or of any other aviation 
security conventions to which the t"-10 partie.:: may adhere. 
4. The Contracting Parties, in their mutual relations, shall 
act in confonnity with the aviation security provisions 
established by the International Civil Aviation Organisation 
ard designated as Annexes to the Convention on International 
Civil Aviation signed at Chicago on 7 Decenber 1944, to the 
extent that such security provisions are applied by the 
Contracting Parties; they shall require that operators of 
aircraft of their registry or operators who have their 
principal place of business or pennanent residence in their 
territory an:i the q,era tors of airports in their territory 
act in confonnity with such aviation security provisions. 
Each Contracting Party shall advise the other of i. ts 
intention to notify any difference to the standards of the 
Cbnvention on International Civil Aviation. 
5. Each Contracting Party agrees to observe the security 
provisions required by the other Contracting Party for entry 
into the territory of that other Contracting Party arrl to 
take adequate measures to protect aircraft c1.rrl to inspect 
passengers, crew, their carry-on items as well as cargo arrl 
aircraft stores prior to am during lx>a.rding or loading. 
-96 -
F.ach Contracting Party shall also give positive 
consideration to any request frcxn tile other Contracting 
Party for special security measur~s to 1reet a particular 
threat. 
6. When an incident or threat of an incident of unlawful 
seizure of aircraft or other unlawfnl acts against the 
safety of passengers, crew, aircraft, airports am air 
navigation facilities occurs, the Contracting Parties shall 
assist each other by facilitating connunications arrl such 
other appropriate ,reasures, as may be agreed, inteooed to 
teaninate rapidly a.oo safely such incident or threat thereof. 
7. When a Contracting Party has reasonable grourds to believe 
that tile other Contracting Party has departed fran the 
aviation security provisions of this Article, the 
aeronautical autrorities of that Contracting Party may 
request unnediate consultations with the aeronautical 
43:~thori ties of the other Contracting Party. Failure to reach 
a satisfactory agreeanent within 15 days frao the date of 
such request will constitute grourrls to withh::>ld, revoke, 
limit or urpose conditions on the operating authorisation or 
technical pennission of an airline or airlines of the other 
Contracting Party. When required by an eirergency, a 
O:mtract ing Party may take interim act ion prior to the 
expiry of 15 days. 
ARTICLE 10 
Ai q:x:>rt Fees and Olarges 
Fees arrl charges urposed in the territory of either Contracting 
Party for the use of aiq:x:>rts ard other aviation facilities by 
the aircraft of the designated airline or airlines of the other 
Contracting Party shall not be higher than those iJrposed on 
aircraft of an airline of the first Contracting Party engaged 
in s i.Jnilar international air services. 
-_97 -
ARTICLE 11 
OJstans O\arges arrl Procedures 
1. Aircraft operated on international air services by the 
designated airline or airlines of either Contracting Party, 
as 'well as the fuel, lubricants, spare parts, equipnent arrl 
aircraft stores ( including focd, alcooolic an::1 non-alcooolic 
drinks arrl tobacco) on board such aircraft on arriving in 
the territory of the other Contracting Party shall be exempt 
fran all custans duties, inspection fees and other charges 
ard taxes, provided such equipuent am suwlies retrain on 
board the aircraft up to such tune as they are re-exported. 
2. f\Jel, lubricants, spafe parts, equiptrent and aircraft 
stores (including food, alcoholic an:l non-alcoholic drinks 
and tobacco) delivered or which are to be delivered by the 
designated airline or airlines of either Contracting Party 
to the territory of the other Contracting Party exclusively 
for its operational needs shall te exet(t)t f ran all custans 
ciuties, inspection fees arrl other charges and taxes on their 
arrival, departure and while within the territory of that 
other Contracting Party. 
3. There shall also be exe(t)t fran such custans duties, fees, 
charges and taxes, with the exception of charges 
corresporrl ing to services perf onned: 
(a) aircraft stores ( incltrling food, alcoholic arrl 
non-alcoholic drinks) taken on lx>ard aircraft in the 
territory of either Contracting Party for use on t:oa.rd 
aircraft used in the operation of international air services 
by ~he designated airline or airlines of the other 
Contracting Party; 
(b) spare parts arrl equiprent entered into the territory 
of either Contracting Party for the 1raintenance or repair of 
aircraft used in the operation of international air services 
by the designated airline or airlines of the other 
Contracting Party; 
-98 -
(c) fuel arxl lubrican~s destined for use in the cperation 
of international air services~ the designated airline or 
airlines of the other Contracting Party, even when these 
supplies are to be used on the part of the journey perfonned 
over the territory of the Contracting Party in which they 
are taken on b:>ard. 
4. Supplies referred to in paragraphs 1 to 3 of this Article 
may be required to be kept under custans supervision or 
control. 
s. The regular airborne equipment as well as the materials arxl 
supplies retained on boc\rd the aircraft of either 
Contracting Party may be unloaded in the territory of the 
other Contracting Party only with the approval of the 
custaru; autoorities of such territory. In such case, they 
·may be placed W'Xier the supervision of said autoorities up 
to such tune as they are re-exported or otherwise disposed 
of i'ri accordance with custan.s regulations. 
6. Passengers, baggage, cargo arrl mail in direct transit across 
the territory of either Contracting Party arrl not leaving 
the area of the airport reserved for such purpose shall, 
except in respect of security 1neasures against violence and 
air piracy, an::i snuggling of controlled drugs, be subject to 
no uore than siuplif ied control. 
7. Baggage, cargo arrl mail in direct transit shall be exesnpt 
f ron custaru; duties ard other similar taxes. 
ARTICLE 12 
Airline Representation, Ticketing, 
and Sales Prarot ion 
l. The designated airlines of each Contracting Party shall have 
an equal opportunity to euploy, subject to the laws an:i 
-99 -
regulations of the other Contracting Party, the technical 
ard canrercial persormel for the perfoanance of the agreed 
sei:vices on the specified routes an:i to establish ard 
operate off ices in the territory of the other Contracting 
Party. 
2. 'Ibe designated airlines of each Con~racting Party shall 
further have an equal opportunity to issue all kinds of 
docU1rents of carriage am to advertise and prouote sales in 
the territory of the other Contracting Party. 
ARTia..E 13 
Transfer of Fun:ls 
1. All the accounts between the designated airlines shall be 
done in convertible currency. 
2. Each Cbntracting Party shall grant to the airline or 
airlines designated by the other Contracting Party 
pennission to transfer with:>ut any restriction to the Head 
Office of the said airline, in accordance with the rules and 
regulations existing with regard to currency exchange 
control, the prof it arising in respect of its operation of 
the agreed services in the territory of the other 
Contracting Party. 
ARTia..E 14 
Taxation 
l. Profits fran the operation of aircraft in international 
traffic shall be taxable only in the territory of the 
Contracting Party in which the place of effective 1nanagerent 
of the enterprise is situated. 
-100 -
2. Capital represented ~y aircraft operated in international 
traffic a.rrl by uovable property pertaining to the operation 
of such aircraft shall be taxable only in the territory of 
the Cbntracti.ng Party in which the place of effective 
manage.irent of the enterprise is situated. 
3. Where a special Agreerent for the a,,o idance of double 
taxation with respect to taxes on incane arrl on capital 
exists bet~ the Contracting Parties, the provisions of 
the latter shall prevail. 
ARTiciE 15 
Consultations 
1. In a spirit of close ro-operation, the aeronautical 
authorities of ooth Contracting Parties shall consult with 
eaeh other fran tilne to ti.me with a view to ensuring the 
i.upleuentation of, an:i satisfactory carpliance with, the 
provisions of this Agreement. 
2. The aeronautical auth::>rities of either Contracting Party 110y 
request cons~tations, through discussions or 
corresporrlence, which shall cnnnence within a pericxi of 
sixty ( 60) days fran the date of receipt of the request, 
unless ooth aeronautical auth::>rities agree to an extention 
of this pericxi. 
ARTiciE 16 
Settle.irent of Disputes 
1. Any dispute rel.at ing to the interpretation or application of 
this />qreerent or the Annex thereto shall be settled by 
direct negotiations between the Contracting Parties. Such 
negotiations shall canrence as soon as practicable but in 
any event not later than sixty (60) days fran the date of 
-101 -
receipt of a request. for such negotiations, unless otrerwise 
agreed by the Contracting Parties. 
2. If the O:>ntracting Parties fail to reach a settlenent by 
negotiation, they may agree to refer the dispute for 
decision to sane person or bxiy, or the dispute anay, at the 
request of either Contracting Party, be subnitted for 
decision to a tribunal of three arbitrators, one to be 
naninated by each Contracting Party an::l the third to be 
appointed by the o-,,o so naninated. Each of the O:>ntracting 
Parties shall naninate an arbitrator within a pericxi of 
sixty (60) days fran the date of receipt by either 
Contracting Party fran the other of a notice, through 
diplaratic channels, ·requesting arbitration of the dispute 
an::l the third arbitrator shall be appointed within a further 
period of sixty (60) days. If either of the Contracting 
Parties fails to naninate an arbitrator within the period 
specified, or if the third arbitrator is oot appointed 
within the pericd specified, the President of the O::>uncil of 
the International Civil Aviation Organisation may be 
requested by either Contracting Party to appoint an 
arbitrator or arbitrators as the case requires. In such 
case, the thi~ arbitrator shall be a national of a thiro 
State an::l shall act as President of the arbitral t:ody. 
3. '!he Contracting Parties uooertake to carply with any 
decision given wrler paragraph 2 of this Article. 
4. If an::l for so long as either Contracting Party fails to 
carply with a decision given urrle.r paragraph 2 of this 
Article, the other Contracting Party may li.Jnit, susperd or 
revoke any rights or privileges which it has granted by 
virtue of this .&qreesnent to the Contracting Party in default. 
5. fach Contracting Party shall ~ar the expenses ard 
remuneration necessary for its arbitrator; the fee for t.he 
third arbitrator ard the expenses recessary for this-one as 
twell as those due to the activity of the arbitration shall 
t:e equally shared by the Contracting Parties. 
-102 -
ARTICLE 17 
Mcxiification 
1. If either of the Cbntracting Parties oonsiders it desirable 
to arcdify any provision of this Agreement, including the 
Anrex thereto, it may request oonsultations bet,-..ieen the 
Contracting Parties in relation to the prcp::>sed 
anodif ication. Such oonsultations shall cnnnence within a 
perioo of sixty (60) days of the date of receipt of the 
request. Any uodifications so agreed shall cx::ine into force 
when. they have been confinned, in writing, O'f the 
Cbntracting Parties. 
2. A uodification to the· Annex anay be anade by direct agreenent 
bet~ the appropiate auth:>rities of both Contracting 
Parties ard shall be C'Onf inned by exchange of diplanatic 
notes. 
ARTICLE 18 
Registration 
This Agreenent arrl all ainen:brents thereto shall be registered 
with the Council of the International Civil Aviation 
Organisation an::l the Secretariat of the United Nations. 
ARTICLE 19 
Applicability of Multilateral Agreenents or Convent ions 
If any provision of the Agreenent conflicts with an obligation 
which either Contracting Party 1nay have towa.Itls a third Party, 
both Contracting Parties shall enter into oonsultations, in 
accordance with Article 15, to amerrl the Agreerent in order to 
resolve any such conflict as scxm as possible. 
-·103 -
ARJiq.E 20 
tbt ice of Teoninat ion of Agreanent 
1. Either Contracting Party may at any ti.me give notice, in 
writing, to the other Contracting Party of its decision to 
tenninate this .Pqreement; such noti~ shall be sent 
sunultaneously to the International Civil Aviation 
Organisation arrl the Secretariat of the United Nations. In 
such case, the Agreement shall tenninate twelve (12) uonths 
after the date of receipt of the noti~ by the other 
Contracting Party, unless the notice to tenninate is 
with:irawn by agreement before the expiry of this pericxi. 
2. In the absence of acknowledgesrent of receipt by the other 
Contracting Party, notice shall be deemed b have been 
received fourteen (14) days after the receipt of the notice 
by the International Civil Aviation Organisation. 
·--104 -
ARTICLE 21 
Entry i.nto Force 
This Agreement shall enter into force on the first day of the 
secorrl 1ronth, following the date of signature. 
IN WITNESS WHERIDF the tmdersigned Plenipotentiaries, being 
duly autoorised thereto by their respective Governments, have 
signed the present Agreenent. 
Done in duplicate at 
the ~lish and 
authentic. 
FOR THE GJVffiNMENr this day of each in 
l~uages, both texts being equally 
....... ..... ... ~ -~ _ ..... _..._. -, ~ ....._ 
r 
-105 -
ANNEX 
A. The airline( s) designated by 
be entitled to cperate scheduled air services in both 
directions on routes specified hereafter: 
Foints of departure: Foints of arrival: 
Foints in Foints in 
B. nie airline(s) designated by shall 
shall be entitled to c:perate sc: iuled air 
services in both directions on routes speci.tied hereafter: 
Foints of departure: R:>ints of arrival: 
Foints in Fbints in 
C. Any intennediate points may be served by the designated 
airlines of each Contracting Party without exercising Fifth 
Freedan traffic rights. 
D. (1) The airline(s) designated by either Contracting Party 
,nay exercise fifth freed.an rights initially at 
:m a route between toth a:>tmtries, provided 
that such rights are available to the airlines of lx>th 
Contracting Parties. 
(2) The exercise of Fifth Freedan rights at other p:)lnts 
1nay t:e agreed upon by the aeronautical auth::>rities of 
the t'-0 Cbntracting Parties. .. 
/ 
-106 -
FICHE FINANCIERE 
VOLET 1 IMPLICATIONS FINANCIERES 
1. lntltu1, de l'actlon Preparation for negotiations with Third 
countries on civi I aviation 
2. Llgnes budg6talres concern6es Article 82-704 
3. Base 1,gale Article 113 of the Treaty 
The data bank is proposed in Communication to the 
Counci I on aviation relations with third countries 
(No COM ... ) 
4. Description de l'actlon 
4.1 ObJectlfs sp6clflques de l'actlon: 
The establishment of a data bank on aviation activities within 
the Community and between the Community and third countries. 
On the basis of this information the Community can take up its 
responsibilities in the area of external aviation relations 
and in particular develop the necessary directives for 
negotiations. 
The information should contain 
the rights exchanged in bilateral agreements in the air 
transport sector between Community Member States and third 
countries 
a summary of bl lateral agreements, MOU's, and other 
official documents 
4.2 Dur6e: 
Establishment of data base one year and thereafter normal 
updating 
4.3 Population v1s,e par l'actlon 
National administrations, air carriers, airports, Commission 
services 
s. Classlflcatlon de la d,pense ou des recettes 
5.1 ONO 
5.2 CND 
5.3 None 
-107 -
6. Quelle est la nature de la d,pense ou des recettes 
6.1 Subvention i 1001: Yes 
6.2 Subvention pour co-flnancement avec d'autres sources du 
secteur public et/ou prlv,: No 
8.3 Bonlflcatlon d'lnt,r&t : No 
6.4 Alltres: No 
6.5 En cas de r,usslte ,conomlque de l'actlon. un remboursement 
partlel ou total de l'apport financier communautalre est-II 
pr,vu? No 
6.6 L'actlon propos,e lpllque-t-elle une odtftcatlon du nlveau 
des recettes? SI oul. de quelle nature est la odlflcatlon et 
quel type de recette est vis,? No 
7. Incidence flnanc1,re sur les cr,dlts d'lnterventlon (partle B du 
budget) 
7.1 lndlquez le mode de calcul du coat total de l'actlon 
The costs have been estimated on the basis of previous 
experience in the context of the establishment of a special 
data base on statistics. 
7.3 Ech,ancler lndlcatlf des cr,dtts d'engagement et de paleent 
Engagement 
Payment 1993: 500.000 Ecus (already included in 
the draft preliminary 
budget) 
1993 250.000 Ecus 
1994 200.000 Ecus 
8. Quelles sont les dispositions antt-fraude pr,vues dans la 
proposition d'actlon? 
Normal Commission provisions 
VOLET 2: DEPENSES ADMINISTRATIVES 
(PARTIE A DU BUDGET) 
1. L'actlon propos,e lpllque-t-elle une augentatton du nobre 
d'effectlfs de la eolsslon? 
SI oul. de coblen? 
Oui. 
-108 -
This activity wl I I be ensured by the staff of unit VI 1/C.1 (which will 
need some additional staff dependant on the speed and scope of the 
transitional period adopted by the Councl I). 
2) lndlquez le montant des depenses de fonctlonnement et de personnel 
generees par la proposition. 
Expllcltez le mode de calcul. 
The additional staff wi I I involve real location of work inside 
DG VI I and administrative expenses for missions and meetings. 
VOLET 3 ELEMENTS D'ANALYSE COUT-EFFICACITE 
1. ObJectlfs et coherence avec la programmatlon flnanc1,re 
1.1 ObJectlf(s) speclflque(s) de l'actlon proposee. 11 dolt &tre 
quantlfle (dans la mesure du possible) et presente pour 
chacune des ann6es concernees s'II s•agit d'une action 
plurlannuelle. 
The establishment of an external aviation pol icy Is an 
essential element of the internal market. 
The negotiation of a large number of agreements with third 
countries requires different procedures in the Community. The 
necessary proposals have been adopted by the Commission and 
submitted to the Councl I. According to the proposals the 
Commission is responsible for the development of directives 
for negotiations. This can only be done on the basis of 
updated and readily available information. The data-bank 
proposed wl I I give such information. 
1.2 L'actlon est-el le prevue dans la programmatlon flnanc1,re 
de la DG Pour les annees concernees? 
Reference Is made to fiche financiere APB 1993 
1.3 lndlquez i quel obJectlf plus general deflnl dans la 
programmatlon flnancl,re de la DG correspond l'obJectlf de 
l'action propos6e. 
Preparatory action for the negotiation of international 
transport agreements 
-109 -
2. Justification de l'actlon 
2.1 Justification de 1·actlon choisie par rapport i une 
alternative qui permetrait d'attelndre les m&me obJectlfs. La 
Justification dolt se baser notamrnent sur trois· critires: 
a) COdt : The alternative for a data bank would be to request 
the information on a case by case basis. This would also 
make it very difficult for the Community to make any 
progress In this area. 
b) Effets d6rlv6s (Impact au-deli de(s) obJectlf(s) 
sp6clflque(s)) : A data bank work ensures that the 
Commission has the necessary information to develop 
directives for negotiations. 
c) Effet multlpllcateurs (capacit6 de mobilisation d'autres 
sources de flnancement) : No multiplier effects. 
3. Sulvl et 6valuatlon de l'actlon 
3.1 lndicateurs de performance sel6ctlonnes: 
Immediate avai labi I ity of the information 
3.2 Modalit6s et perlodlclte de l'evaluation prevues 
Monthly and ad-hoc 
3.3 Prlnclpaux facteurs d'lncertltude pouvant affecter les 
resultats speclflques de 1·action 
Cooperation by Member States to submit the information 
EN -110 -
ISSN m.,.i-1475 
COM(92) 434 final 
DOCUMENTS 
11 07 
Catalogue number : CB-C0-92-464-EN-C 
ISBN 92-77-48S30-2 
Oflicc for Official Publications of the European Comrnmuties 
L-2985 Luxembourg