WRITTEN QUESTION E-3383/00

by Piia-Noora Kauppi (PPE-DE) to the Commission

(3 November 2000)

Subject: Planned directive with harmful effects on regional airlines

Regional air traffic has flourished in Europe since the sector was opened to competition in the 1980s. Growth in regional airlines has been distinctly faster than in the major airlines. For example, last year 68 million people flew with the 80 regional airlines belonging to the European Regional Airlines Organisation (ERA), 10 % more than the previous year. The major airlines grew by only 5 % during the same period.

At the moment it is relatively convenient to fly with regional airlines, but operators in the sector are afraid that changing rules and rising tariffs may pull the rug from under their feet. There is a danger that the EU will not take any notice of the small airlines and that they will be left out in the cold in the EU's decision-making.

The review of operating and air traffic control fees currently at the planning stage in the Commission would mean a 50-80 % increase in current fees for small aircraft. At the same time the Commission's original plans for a review of slot allocation (allocation of aircraft take-off and landing times) are raising questions among the small airlines. At the same time, the small airlines make additional capacity available for busy airports and offer flights on more varied routes which the major airlines regard as unprofitable.

1. Is the Commission aware of the possible harmful effects of the proposed new directive on regional airlines?

2. Is it possible that the new proposals are manipulating the market and seeking to improve still further the competitiveness of the major airline groups at the expense of the regional airlines?

Answer given by Mrs de Palacio on behalf of the Commission

(21 December 2000)

The directive mentioned by the Honourable Member refers properly to an initiative of the European Organization for the Safety of Air Navigation (Eurocontrol).

In March 1999 Eurocontrol's enlarged committee for route charges set up a task force on the study of possible pricing mechanism in support of the ATM 2000+ strategy. The task force will study a possible pricing mechanism to promote the best use of airspace capacity.

Eurocontrol's central route charges office conducted a lot of simulations such as a simulation of a two-part tariff with different formulas, and prepared an evaluation on the impact on type of flights, types of aircraft, representative city pairs, users per nationality and user organisations. Some of these simulations suggest that users of smaller aircraft would be substantially affected. Work is still going on and the Commission follows developments with attention.

As the Honourable Member will be aware, the Community is not at present a full member of Eurocontrol. It is, however, in the process of acceding to the organization. Furthermore the Commission is preparing legislative initiatives to develop a Community air traffic management policy. These two developments should make it possible for the Community to play a more active role in this discussion.

Concerning the review of slot allocation, the Commission is currently studying how best to revise the existing Community rules (Council Regulation (EEC) 95/93 on common rules for the allocation of slots at Community airports) to respond to the increasing congestion at European airports and the growing gap between available airport infrastructure and demand for air services. In order not to delay further a proposal that has been awaited since 1997, a set of ideas for a future revision was discussed with industry and Member States in July 2000.

The role of regional airlines has been duly considered in the course of this exercise. Accordingly, small airlines, usually operating regional routes within the Community, would continue to benefit from measures allowing Member States to reserve slots for regional services at Europe's congested airports. Also, small airlines with relatively thin slot portfolios would benefit from new entrant status to fly regional services and other intra-Community routes, while new entrants would be given priority in the allocation of slots. Finally, small airlines should be given the opportunity as new entrants to be allocated slots freed up by big companies to fly routes within or outside the Community. Thus, a series of measures should ensure that small airlines with new entrant status would be able to get good slots for commercially viable services and promote their competitiveness.

Following this discussion, and in order to take into account all possible competitive, economic, international and public interest considerations, the Commission invited Member States to give their views on the issue so as to come forward already early next year with a proposal.