WRITTEN QUESTION P-1719/99

by Giuseppe Nisticò (PPE-DE) to the Commission

(27 September 1999)

Subject: Air fares

Whereas:

- within their respective spheres of competence the Commission and the Court of Justice have for some time been calling on European airlines to comply with the principle of free competition and meet the expectations of their users;

- extensive state aids have been granted with the Commission's backing to numerous national airlines, including Alitalia;

- the sector is regulated almost entirely by a series of Community provisions and the Commission is required to monitor compliance with these on the basis of specific rules;

- air fares per kilometre for Italian domestic flights, particularly direct flights to the south of the country, are much higher than fares on European routes;

- this situation represents a substantial and unfair constraint on the development potential of the country's southern regions, especially Calabria because of its geographical position;

- public service contracts are identified in Community legislation as the most appropriate instrument for meeting the needs of disadvantaged sections of the population;

- during the hearings with the European Parliament, Mr Prodi expressed his full willingness to adopt initiatives put forward by Parliament;

In the light of the above:

- Does the Commission consider that the principles and rules laid down in Community legislation are being properly observed?

- Does it believe that public service contracts are an instrument that can be used by regional as well as national governments?

- Will it work for the introduction of common air fares per kilometre applicable to all European countries, possibly with a margin for fluctuation, so as to ensure greater cohesion and integration within the Community?

Answer given by Mrs de Palacio on behalf of the Commission

(21 October 1999)

The regulations making up the Third Air Package, that is Council Regulation (EEC) No 2407/92, of 23 July 1992, on licensing of air carriers(1), Council Regulation (EEC) No 2408/92, of 23 July 1992, on access for Community air carriers to intra-Community air routes(2), and Council Regulation (EEC) No 2409/92, of 23 July 1992, on fares and rates for air services(3), all of which came into force on 1 January 1993, have liberalised air transport activities within the Community. Regulation No 2409/92 in particular provides that Community air carriers have the freedom to set passenger air fares. The Commission does not intend to propose an amendment of this text.

The Commission is of the opinion, however, that regulations in force already respond to the concerns voiced by the Honourable Member. Firstly, free competition has brought about a reduction in air fares in Europe. Secondly, Article 4 of Regulation (EEC) No 2408/92 allows Member States to impose, in certain conditions, a public service obligation and to considerably restrict tariff freedom. These latter provisions have been used satisfactorily more than a hundred times since 1 January 1993 by several Member States, often at the request of developing regions that are keen to be served by adequate and uninterrupted air routes. Italy has not so far made use of these provisions on its domestic routes.

(1) OJ L 240, 24.8.1992.

(2) OJ L 240, 24.8.1992.

(3) OJ L 240, 24.8.1992.