WRITTEN QUESTION E-1732/99

by Giuseppe Nisticò (PPE-DE) to the Council

(30 September 1999)

Subject: Air fares

For some time now both the Commission and the Court of Justice have, in the performance of their respective duties, called on the European airlines to ensure that their activities comply with the principle of free competition and meet the expectations of their customers. Meanwhile, huge amounts of State aid have been granted with Commission approval to a number of national airlines, including Alitalia. The sector is regulated almost entirely by various Community rules, compliance with which the Commission is required to monitor on the basis of clear rules.

However, the fares charged for air travel on Italian domestic flights, particularly flights to southern Italy, work out considerably higher per kilometre than the fares charged on European routes. This situation severely and unfairly limits the development potential of the southern regions and in particular Calabria, given its location.

Community legislation suggests that public service contracts are the most suitable means of ensuring that the needs of less-favoured sectors of the population are met. In the course of the public hearings before the European Parliament, President Prodi declared his readiness to endorse Parliament's initiatives.

In view of the foregoing:

- Is the Council satisfied with the way in which the principles and rules laid down by Community legislation are implemented?

- Does the Council regard the public service contract as an instrument that can be used not only by national governments, but also by regional governments?

- Does the Council envisage taking action to establish a common per kilometre rate for air fares to apply to all European countries, possibly within a limited margin of fluctuation, to ensure enhanced cohesion and integration within the Community?

Reply

(14 February 2000)

1. The third liberalisation package for the Community aviation market came into force on 1 January 1993(1). In this context, Regulation (EEC) 2409/92 established the principle of tariff freedom for Community air carriers operating on intra-Community routes. This freedom does not, however, prevent Member States from intervening under certain conditions to suspend excessively high tariffs or to stop too great a reduction in tariffs. It should also be noted that the same Regulation contains specific provisions for taking account of air transport users' interests.

The liberalisation has resulted mainly in offers of new promotional and special fares, rather than in a generalised reduction in existing fares. Thus the proportion of passengers travelling on regular flights with cut-price tickets has risen considerably. Bearing in mind also the charter market, it may be concluded that the vast majority of passengers travels at a reduced price.

The Council took note of the Resolution adopted by the European Parliament in 1998 on the impact of the third package of air transport liberalisation measures(2).

2. Article 4 of Regulation (EEC) No 2408/92 enables Member States to impose public service obligations, which are published in the Official Journal of the European Communities.

Over 100 new intra-Community routes have been opened on the basis of the new rules.

The authorities responsible for establishing such public service obligations are designated in accordance with domestic law, and may vary from Member State to Member State.

3. The Council has received no Commission proposal for a change to the principles laid down by the third package of air transport liberalisation measures, such as the setting up of a common per kilometre rate for air fares to apply to all European countries, as suggested by the Honourable Member.

However, the Council will examine any proposal from the Commission for a reduction in the cost of air services likely to result in further advantages for consumers.

(1) See Council Regulations (EEC) No 2407/92, 2408/92, 2409/92 published in OJ L 240, 28.8.1992.

(2) OJ C 80, 16.3.1998, p. 240 et seq.