Proposal for a COUNCIL DECISION concerning an Agreement between the European Economic Community, the Kingdom of Norway and the Kingdom of Sweden on civil aviation
Date: 1991-08-30
Institutions: European Commission
Subjects: Norway, Sweden, agreement (EU), civil aviation, competition

COMMISSION OF THE EUROPEAN  COMMUNITIES 

C0M(91) 299  f i na| 

Brussels, 30 August 1991 

Proposal  for a 

COUNCIL DECISION 

concerning an Agreement between the European 

Economic Community, the Kingdom of Norway and the 

Kingdom of Sweden on civil aviation 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

1.  By  its  decision  of  18-19  June  1990  the  Council  authorized  the 

Commission  to  open  negotiations  with  Norway  and  Sweden  using  as  a 

basis  the  negotiating  directives  drafted  for  the  purpose  of  the 

negotiations between  the Community  and  the EFTA States. 

2.  The  Commission  has  in  coordination  and  close  consultation  with 

Member  States  conducted  negotiations  with  a  Joint  delegation  from 

Norway  and  Sweden. 

Agreement  could  be  reached  on  a  text  which 

will  make  all  Community  legislation  affecting  the  air  transport 

sector  applicable  in Norway  and  Sweden. 

3.  The  draft  Agreement  which  is annexed  to  the attached  proposal  for a 

Council  Decision  is structured  in six  chapters,  an  Annex  and  three 

Protocols. 

Chapter I 

deals  with  the  scope  of  the  Agreement. 

It 

establishes  that  the  "acquis  communautaire"  and 

interpretations  of  the  Court  of  Justice  of  the 

European  Communities  and  of  the  Commission  shall  be 

applicab le. 

Chapter  11 

contains  a  transcription  of  the  competition  articles 

of  the  Treaty. 

Chapter  111 

creates  the  rights  for  the  Commission  to  implement 

the  competition  articles  and  the  Regulations  and 

Directives  which  form  part  of  the  "acquis"  directly 

in Norway  and  Sweden. 

-2-

Chapter  IV 

establishes  a  Joint  Committee  and  spells  out  its 

tasks.  It contains  provisions  for  consultations and a 

procedure  to ensure  that  future Community  legislation 

concerning  air  transport  will  also become part  of  the 

agreement. 

Chapter  V 

contains  provisions  for  consultation  and  a  procedure 

to  deal  with  relations  with  third  countries  and  with 

international  organisations. 

Chapter  VI 

deals  with  provisions  regarding  entry  into  force  and 

review of  the Agreement. 

This chapter  also  contains 

the provision  that  the Agreement  shall  cease  to be  in 

force  from  the  date  an  agreement  between  EEC  and  the 

EFTA  countries  on  the  European  Economic  Area  enters 

into force. 

Annex 

lists the  relevant  "acquis communautaire"  and  extends 

the scope of  the Regulations and Directives to Norway 

and  Sweden. 

Protocol 1 

deals  with  future  legislation  by  the  Community. 

Parties 

agree 

that 

relevant 

Regulations 

and 

Directives  which  will  be  developed  by  the  Community 

shall  be considered  for  inclusion  in the Agreement. 

Protocol  2 

transcribes  declarations  from  the  Council  and  from 

the  Commission  concerning  the  implementation  of 

specific  articles  of  various  Council  Regulations  and 

Directives so as  to ensure  that  the Agreement  will  be 

implemented  in  the  same  way  in  all  Contracting 

Parties. 

-3-

Protocol  3  : 

describes  the  position  taken  by  the  Council  with 

regard  to  the  problems  of  air  traffic  congestion  in 

Europe. 

4.  The  Commission  believes  that  this  Agreement  meets  the  negotiating 

directives  as  established  by  the  Council  and  proposes  that  the 

Council  adopts  the attached  proposal  for  a decision. 

PROPOSAL  FOR  A COUNCIL  DECISION 

concerning  the conclusion of  an Agreement  between  the  European 

Economic Community,  the Kingdom  of  Norway  and  the Kingdom 

of  Sweden on  civiI  aviation. 

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  Commission^1) 

Whereas  the Council  has  decided  at  its meeting  of  18-19 June  1990  that 

negotiations  with  Norway  and  Sweden  should  not  be  further  delayed  and 

has  authorized  the  Commission  to  open  negotiations  with  these  two 

countries,  using  as  a  basis  the  negotiating  directives  drafted  for  the 

purpose of  the negotiations  between  the Community  and  the EFTA States; 

Whereas  the  Commission  has  conducted  the  negotiations  in  close 

coordination  and  consultation  with  the  Member  States  throughout  the 

negotiating process; 

Whereas  the Agreement  permits  the  creation,  in the  area  covered  by  the 

European  Economic  Community,  the  Kingdom  of  Norway  and  the  Kingdom  of 

Sweden, of  a set  of  rules  applicable  to civil  aviation,  thus  permitting 

the  establishment  of  a  uniform  system  of  rules  concerning  market 

access, airline  capacity  as well  as price  fixing  in that  field; 

Whereas,  as  a  consequence,  the  conclusion  of  the  agreement  is part  of 

the  common  commercial  policy  and  should  therefore  be  based  on  article 

113  of  the  EEC  Treaty,  requirements  of  a  technical  nature  would  be 

considered  as supplementary  to  the  above mentioned  provisions; 

(1) 

-2-

Whereas  finally  the  agreed  text  resulting  from  the  negotiations  meets 

the  negotiating  directives  for  the  conclusion  of  an  agreement  between 

the EEC and  EFTA  States on  air  transport. 

HAS DECIDED AS  FOLLOWS 

Article 1 

The  Agreement  between  the  European  Economic  Community,  the  Kingdom  of 

Norway  and  the  Kingdom  of  Sweden  on  civil  aviation  is  hereby  approved 

on  behalf  of  the  Community. 

The  text  of  the Agreement  is attached  to  this  Decision. 

Art icle 2 

The  President  of  the  Council  shall  carry  out  the  necessary  formalities 

as provided  for  in Article  23 of  the  Agreement. 

Art icle 3 

The  Commission,  assisted  by  with  representatives  of  the  Member  States, 

shall  represent  the  Community  in  the  Joint  Committee  set  up  by 

Article  13 of  the  Agreement. 

-3-

Article  4 

This  Decision  shall  enter  into  force  on  the  day  following  its 

publication  in the Official  Journal  of  the  European  Communities. 

Done  at 

For  the Council 

The  President 

AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY,THE KINGDOM 

OF NORWAY AND THE KINGDOM OF SWEDEN ON CIVIL AVIATION 

The Contracting Parties; 

Desiring to set out rules for civil aviation within the area covered by 

the EEC, the Kingdom of Norway and the Kingdom of Sweden, rules which 

are  without  prejudice  to  those  contained  in  the  EEC  Treaty  and  in 

particular  to existing  Community  competences under Articles 85 and 86 

of the EEC Treaty and the competition rules derived therefrom; 

Agreeing that it is appropriate to  base these rules on the legislation 

in force within the European Economic Community; 

Desiring  to  prevent,  in  full  deference  to  the  independence  of  the 

courts,  divergent  interpretations  and  to  arrive  at  as  uniform  an 

interpretation  as  possible  of  the  provisions  of  this  Agreement  and 

those  provisions  of  Community  legislation  which  are  substantially 

reproduced in this Agreement; 

- 2 -

Whereas  this  Agreement  shall  not  prejudge  the  outcome  of  the 

negotiations  between  EEC  and  the  EFTA  countries  on  the  European 

Economic Area and in particular  in respect of the rules of competition 

and state aid and shall be terminated on-the date on which an agreement 

between the EEC  and  the EFTA  countries  on the said  European  Economic 

Area enters into force ; 

Have agreed as follows: 

CHAPTER 1 

Article 1 

1.  This Agreement  sets out  rules  for the Contracting  Parties  in the 

field  of  civil  aviation.  These  rules  are  without  prejudice  to 

those  contained  in  the EEC  Treaty  and  in particular  to  existing 

Community  competences  under  Articles  85 and  86 of  the EEC Treaty 

and the competition rules derived therefrom. 

For this purpose the provisions  laid  down by the Regulations and 

Directives specified at any time in the Annex shall apply under the 

conditions  set  out  hereafter.  The  interpretations  of  the  said 

provisions shall be in accordance with the interpretations provided 

-  3 -

by  the  Court  of  Justice  of  the  European  Communities  or  the  EEC 

Commission  (hereafter  called  the Commission) applicable to  articles 

4  to  6,  to  the  corresponding  articles  of  the  EEC  Treaty  and  to 

those Regulations  and Directives.  Such  interpretations  handed  down 

after  the  signature  of  the  agreement  shall  be  communicated  to 

Norway  and  Sweden. 

On  request  by  a  Contracting  Party  the  Joint  Committee  shall 

exchange  views  pursuant  to  Article  13  on  the  implications  of  such 

interpretations  for the proper  functioning of the Agreement. 

3.  The  Parties  to  this  Agreement  shall  take  all  appropriate  measures 

whether  general  or  particular,  to  ensure  fulfilment  of  the 

obligations  arising  out  of  this  Agreement  and  shall  refrain  from 

any  measure  which  would  jeopardize  attainment  of  the  objectives  of 

this Agreement. 

Article 2 

Any  service  covered  by  this  Agreement,  operated  by  the  Scandinavian 

Airlines  System  (SAS)  between  one  of  the  States  in  which  the  parent 

companies  are  registered  and  another  State  within  the  Community  is 

considered  as a third  or  fourth  freedom  service. 

3) 

- 4 -

CHAPTER 2 

Article 3 

The provisions  in Articles  4  to  6 and  the Annex  shall  apply  to  the 

extent  that  they  concern  air  transport  or  an  associated  matter 

mentioned in the Annex. 

Article 4 

1.  The  following  shall  be  prohibited  as  incompatible  with  this 

Agreement  :  all  agreements  between  undertakings,  decision  by 

associations  of  undertakings  and  concerted  practices  which  may 

affect  trade  between  Contracting  Parties  and which  have  as their 

object  or  effect  the  prevention,  restriction  or  distortion  of 

competition within the territory covered by this Agreement, and in 

particular those which : 

a)  directly  or  indirectly  fix  purchase  or  selling  prices  or 

any other trading conditions; 

b)  limit 

or 

control 

production,  markets,  technical 

development, or investment; 

- 5 -

c)  share markets or sources of supply; 

d)  apply dissimilar conditions to equivalent transactions with 

other  trading  parties,  thereby  placing  them  at  a 

competitive disadvantage; 

e)  make the  conclusion  of  contracts  subject  to acceptance by 

the  other  parties  of  supplementary  obligations  which,  by 

their  nature  or  according  to  commercial  usage,  have  no 

connection with the subject of such contracts. 

2.  Any  agreements  or  decisions  prohibited  pursuant  to  this  Article 

shall be automatically void. 

3.  The  provisions  of  paragraph  1  may,  however,  be  declared 

inapplicable in the case of : 

-  any  agreement  or  category  of  agreements  between 

undertakings; 

-  any  decision  or  category  of  decisions  by  associations  of 

undertakings; 

any concerted practice or category of concerted practices; 

which  contributes  to  improving  the  production  or  distribution  of 

goods  or  to  promoting  technical  or  economic  progress,  while 

allowing consumers a fair share of the resulting benefit, and which 

does not : 

- 6 -

a)  impose on the undertakings concerned restrictions which are 

not indispensable to the attainment of these objectives; 

b)  afford  such  undertakings  the  possibility  of  eliminating 

competition  in  respect  of  a  substantial  part  of  the 

products in question. 

Article 5 

Any abuse by one or more undertakings of a dominant position within the 

territory  covered  by  this  Agreement  or  in  a  substantial  part  of  it 

shall be prohibited as incompatible with this Agreement  in so far as it 

may affect trade between Contracting Parties. 

Such abuse may, in particular, consist in : 

a)  directly  or  indirectly  imposing  unfair  purchase  or  selling 

prices or other unfair trading conditions; 

b)  limiting  production,  markets  or  technical  development  to  the 

prejudice of consumers; 

- 7 -

c)  applying dissimilar conditions to equivalent transactions with 

other  trading  parties, thereby  placing  them  at  a  competitive 

disadvantage; 

d)  making the conclusion of contracts subject to acceptance by the 

other  parties  of  supplementary  obligations  which,  by  their 

nature  or  according  to  commercial  usage,  have  no  connection 

with the subject of such contracts. 

Article 6 

1.  Save  as otherwise  provided  in this Agreement, any  aid  granted  by 

Norway or Sweden or by a Member State of the EEC or through State 

resources  in  any  form  whatsoever  which  distorts  or  threatens  to 

distort  competition  by  favouring  certain  undertakings  or  the 

production  of  certain goods  shall, in so far as  it affects trade 

between Contracting Parties, be incompatible with this Agreement. 

2.  The following shall be compatible with this Agreement : 

a)  aid  having  a  social  character,  granted  to  individual 

consumers,  provided  that  such  aid  is  granted  without 

discrimination  related  to  the  origin  of  the  products 

concerned; 

b)  aid to make good the damage caused by natural disasters or 

exceptional occurrences. 

- 8 -

3.  The  following  may  be  considered  to  be  compatible  with  this 

Agreement : 

a)  aid to promote the economic development of areas where the 

standard  of  living  is  abnormally  low  or  where  there  is 

serious under-employment; 

b)  aid  to  promote  the  execution  of  an  important  project  of 

common European interest or to remedy a serious disturbance 

in the economy of a Contracting Party; 

c)  aid  to  facilitate  the  development  of  certain  economic 

activities  or  of  certain  economic  areas,  where  such  aid 

does  not  adversely  affect  trading  conditions  to an extent 

contrary to the common interest. 

Article 7 

1.  The rules laid down in Article 6 shall be enforced: 

as regards Norway and Sweden, by application of the provisions 

of  paras.  2  to  6  and  the  appropriate  national  rules  and 

regulations of those States; 

-  as regards the EEC, under the Treaty of Rome. 

9 -

2.  With  regard  to  aids  granted  by  Norway  and  Sweden  the  Commission 

shall,  in cooperation  with Norway  and Sweden, keep under  constant 

review  all  systems  of  aid  existing  in  those  States.  It  shall 

propose  to  the  latter  any  appropriate  measures  required  by  the 

progressive development or by the functioning of this Agreement. 

If,  after  giving  notice  to  the  parties  concerned  to  submit  their 

comments,  the  Commission  finds  that  aid  granted  by  one  of  those 

States  or  through  State  resources  is  not  compatible  with  this 

Agreement  having  regard  to Article  6,  or that  such  aid  is  being 

misused, it shall inform the State concerned and shall request that 

such  aid  be  abolished  or  altered  within  a  period  of  time  to  be 

determined by the Commission. 

4.  Unless the State concerned  notifies the other Contracting  Parties 

that  it  is  not  in  agreement  with  the  action  requested,  it  shall 

take  the necessary measures and inform the Commission thereof. 

5.  If  the  State  concerned  is  not  in  agreement  with  the  action 

requested  by  the  Commission  the  matter  shall  within  21  days  be 

submitted  to the Joint  Committee, which  shall meet within  14 days 

of the date of submission. 

- 10 -

6.  The Commission  shall be  informed, in sufficient  time to enable it 

to submit its comments, of any plans to grant or alter aid. If it 

considers that any such plan is not compatible with this Agreement 

having  regard  to  Article  6,  it  shall  without  delay  initiate  the 

procedure  provided  for  in paragraph  3. The  State  concerned  shall 

not put its proposed measures into effect until this procedure has 

resulted in a final decision. 

CHAPTER 3 

Article 8 

1.  Norway  and  Sweden  shall  ensure  that  the  Commission  is given the 

information foreseen in the Annex in  respect of the application of 

the rules in Articles 4-5 and the Annex . 

In  instances where the Commission may  obtain  information  directly 

from  undertakings  as provided  for  in the Annex  to  this Agreement 

Norway  and  Sweden  shall  upon  request  provide  the  Commission  with 

such information and/or arrange if requested  for a direct visit on 

a  specified  date  and  invite  the  Commission  to  participate, while 

respecting the relevant procedural guarantees laid down by national 

law. 

- 11 -

Article 9 

1.  Norway  and  Sweden  shall  ensure  that Articles  4,  5 and  6  and  the 

provisions of the Regulations and Directives specified in the Annex 

are applied in their territories and enforced with the same effect 

as in the EEC. 

The Contracting Parties shall ensure that the rights which devolve 

from Articles  4,  5, 6,  7 and  the  above-mentioned  Regulations  and 

Directives may be invoked before the national courts. 

Article 10 

All questions concerning the validity of decisions of the institutions 

of the Community, pursuant to Articles 4, 5, 6, 7 and the Regulations 

and Directives specified in the Annex to this Agreement shall be of the 

exclusive  competence  of  the  Court  of  Justice  of  the  European 

Communities. 

(4) 

- 12 -

Article 11 

1.  Whenever  a decision  contains  a request  for action  to be  taken by 

Norway  and/or  Sweden  pursuant  to  the  Regulations  and  Directives 

specified  in  the Annex  then, unless the  State  concerned  notifies 

the other Contracting Parties that it is not in agreement  with the 

action requested,  it  shall take the necessary measures  and  inform 

the Commission thereof. 

2.  If  the  State  concerned  is  not  in  agreement  with  the  action 

requested  by  the  Commission  the  matter  shall  within  21  days  be 

submitted  to  the  Joint  Committee  referred  to  in Article 13 which 

shall meet within 14 days of thé date of submission. 

CHAPTER 4 

Article 12 

1.  The  Agreement  shall  be  without  prejudice  to  the  right  of  each 

Contracting Party, subject to compliance with the principle of non 

discrimination and the provisions of this Article and of Article 13 

paragraph  2, unilaterally  to  amend  its domestic  legislation  on a 

point regulated by this Agreement. 

-  13 -

2. As  soon  as  a  Contracting  Party  has  adopted  an  amendment  of  its 

domestic  legislation  it shall  inform the other Contracting  Parties 

via  the  Joint  Committee  referred  to  in  Article  13,  eight  days 

after  adoption  at  the  latest.  The  Joint  Committee  shall  within  14 

days  thereafter  hold  an  exchange  of  views  on  the  implications  of 

such an amendment  for the proper  functioning  of the Agreement. 

3.  The Joint Committee  shall : 

either  adopt  a  decision  revising  the  provisions  of  the 

Agreement  so  as  to  integrate  therein,  if  necessary  on  a 

basis  of  reciprocity,  the  amendments  made  to  the 

legislation  in question; 

or  adopt  a  decision  to  the  effect  that  the  amendments  to 

the  legislation  in  question  shall  be  regarded  as  in 

accordance with the Agreement; 

or  decide  any  other  measure  to  safeguard  the  proper 

functioning  of the Agreement. 

Article  13 

1.  A  Joint  Committee  is hereby  established  which  shall  be  responsible 

for the administration  of the Agreement  and shall ensure  its proper 

implementation. 

For  this  purpose  it  shall  make  recommendations 

and  take  decisions  by  unanimity.  The  decisions  of  the  Joint 

Committee  shall  be  put  into  effect  by  the  Contracting  Parties  in 

accordance with their own rules. 

14 -

2.  For the purpose of the proper implementation of this Agreement, the 

Contracting Parties shall exchange information and, at the request 

of  either  party,  shall  hold  consultations  within  the  Joint 

Committee. 

3.  The Joint Committee shall adopt  its own rules of procedure at the 

latest 21 days after the entry into force of this Agreement. 

4.  The  Joint  Committee  shall  consist  of  one  representative  each  of 

Norway and Sweden on the one hand and the EEC on the other hand. 

5.  Norway or Sweden and the EEC shall preside in turn over the Joint 

Committee  in accordance with the  arrangements to be  laid  down  in 

its rules of procedure. 

6.  The chairman shall convene meetings of the Joint Committee at least 

once  a  year  in  order  to  review  the  general  functioning  of  the 

Agreement  and  whenever  special  circumstances  so  require,  at  the 

request of either Contracting Party. 

7.  The  Joint  Committee  shall,  in  addition, meet  in  conformity  with 

articles 1, 7, 11 and 12. In the case of disagreement the decision 

shall be referred to a subsequent meeting of the Joint Committee to 

be held within two months from the date of referral  in accordance 

with the conditions to be laid down in its rules of procedure. 

- 15 -

8.  The Joint Committee may decide to set up any working party that can 

assist it in carrying out its duties. 

Article 14 

1.  A  Décision  of  the  Joint  Committee  shall  be  binding  upon  the 

Contracting Parties. 

If, in the view of one of the Contracting Parties, a decision of the 

Joint Committee is not properly implemented by another Contracting 

Party  concerned,  the  former  may  request  that  the  issue  shall  be 

discussed  by  the  Joint  Committee.  If  the  Joint  Committee  cannot 

resolve the issue within two months of its referral, the Agreement 

shall cease to be in force. 

The  decision  of  the  Joint  Committee  shall  be  published  in  the 

Official Journal  of the European  Communities. Each decision  shall 

state  the  date  of  its  implementation  in  the  three  Contracting 

Parties  and  any  other  information  likely  to  concern  economic 

operators.  The  decisions  shall  be  submitted  if  necessary  for 

ratification  or  approval by the Contracting  Parties  in accordance 

with their own procedures. 

- 16 -

4. The Contracting  Parties  shall notify each other of the completion 

of this formality.  If upon the expiry of a period of twelve months 

after  adoption  of  a  decision  by  the  Joint  Committee  such 

notification  has not taken place, paragraph  5 shall apply mutatis 

mutandis. 

5. If  the  Joint  Committee  does  not  take  the  decisions  pursuant  to 

articles 1.2, 7.5, 9.1, 11.2 and 12.3 within six months of the date 

of referral , this Agreement shall cease to be in force. 

6. As regards legislation covered by article 12 between the signature 

of  the  Agreement  and  its  entry  into  force  of  which  the  other 

Contracting  Parties  have  been  informed  the  date  of  referral  in 

paragraph 5 shall be taken as the date on which the information was 

received.  The  date  on  which  the  Joint  Committee  shall  reach  a 

decision can not be earlier than 2 months after the date of entry 

into force of the Agreement. 

Chapter 5 

Article 15 

The  Contracting  Parties  shall  consult  each  other,  at  the  request  of 

either  party,  in  accordance  with  the  procedures  laid  down  in 

Articles 16, 17 and 18 

- 17 -

(a) on  air  transport  questions  dealt  with  in  international 

organizations ; and 

(b) on  the various  aspects of  developments which  have taken  place in 

relations  between  Contracting  Parties  and  third  countries  in  air 

transport, and  on  the  functioning  of  the  significant  elements of 

bilateral or multilateral agreements concluded in this field. 

The consultations  shall be held within one month of the request or as 

soon as possible in urgent cases. 

Article 16 

1.  The main  aims  of  the  consultations  provided  for  in Article 15(a) 

shall be : 

(a) to  determine  jointly  whether  the  questions  raise  problems  of 

common interest; and 

(b) depending upon the nature of such problems : 

to  consider  jointly  whether  Contracting  Parties'  action 

within the international  organizations concerned  should be 

coordinated, or 

-  to  consider  jointly  any  other  approach  which  might  be 

appropriate. 

2.  The  Contracting  Parties  shall  as  soon  as  possible  exchange  any 

information of relevance to the aims described in paragraph 1. 

- 18 -

Article 17 

1.  The main  aims of  the  consultations  provided  for  in Article 15(b) 

shall  be  to  examine  the  relevant  issues  and  to  consider  any 

approach which might be appropriate. 

For the purposes of the consultations referred to  in paragraph 1, 

each Contracting  Party  shall  inform the other Contracting  Parties 

of  developments  which  have  taken  place  in  the  field  of  air 

transport  and  of  the  operation  of  bilateral  or  multilateral 

agreements concluded  in that field, if it considers this likely to 

contribute to the identification of problems of common interest. 

Article 18 

1.  The consultations provided for in articles 15, 16 and 17 shall take 

place within the framework of the Joint Committee. 

2.  The  information  and  consultations  provided  for  in articles 15, 16 

and 17 shall be covered by professional secrecy. 

- 19 -

CHAPTER 6 

Article 19 

1.  This Agreement shall remain in force unless denounced by one of the 

Contracting Parties. 

2.  Each Contracting Party may denounce the Agreement by notifying the 

other Contracting Parties. The Agreement shall cease to be in force 

1 year after the day of notification. 

3.  This  Agreement  shall  cease  to  be  in  force  from  the  date  an 

agreement  between  EEC  and  the  EFTA  countries  on  the  European 

Economic Area enters into force. 

Article 20 

This Agreement shall be reviewed after request by any Contracting Party 

and at any event after one year of its entry into force. 

- 20 -

Article 21 

Norway  and  Sweden  shall  bring  their  legislative  and  administrative 

provisions  into  conformity  with  this  Agreement  before  the  entry  into 

force of the Agreement. 

Article 22 

This  Agreement  shall  supersede  the  relevant  provisions  of  bilateral 

arrangements in force between Norway and/or Sweden on the one hand and 

Community Member States on the other hand. 

Article 23 

1.  This  Agreement  shall  be  subject  to  approval  or  ratification  in 

accordance  with  the  Contracting  Parties  own  procedures  and  the 

Parties shall notify each other of the completion of the procedures 

necessary for that purpose. 

2.  This Agreement shall enter into force on the date on which the last 

instrument of ratification has been deposited. 

- 21 -

3.  This  Agreement  and  the  instruments  of  ratification  shall  be 

deposited  in the archives of the Secretariat of the Council of the 

European Communities, which shall deliver a certified  copy thereof 

to each Contracting Party. 

Article 24 

This Agreement  is drawn  up  in all official  languages  (Danish, Dutch, 

English,  French,  German,  Greek,  Italian,  Portuguese,  Spanish)  of  the 

Community  as well as in the Norwegian and Swedish languages, all these 

texts being equally authentic. 

- 22 -

ANNEX 

For  the  purposes  of  this  Agreement  Norway  and  Sweden  shall  be 

considered  as falling within the terms "Member States" and  "Community" 

referrred to in the following EEC Directives and Regulations. 

1.  90/2343/EEC 

Council  Regulation  of  24 July  1990 on  access  for  air  carriers to 

scheduled  intra-Community  air service routes and on the sharing of 

passenger  capacity  between  air  carriers on  scheduled  air  services 

between member States 

Articles 1, 2, 3 para I, 4-10, 11 with the exception of para 2, 12-

14, 17 

2.  90/2342/EEC 

Council  Regulation  of  24  July  1990  on  fares  for  scheduled  air 

services 

Articles 1-11, 14 

- 23 -

3.  91/294/EEC 

Council Regulation of 4 February 1991 on the operation of air cargo 

services between Member States 

Articles 1, 2, 3 para 1, 4-11 

4.  62/17/EEC 

Council Regulation of 6 February  1962 implementing Articles 85 and 

86  of  the  Treaty,  as  amended  by  Regulation  59,  by  Regulation 

118/63/EEC and by Regulation 2822/71/EEC 

Articles  1-9,  10  para  1  and  2,  11-14,  15  with  the  exception  of 

para 3, 16 para 1 and 2, 17-24 

Any  reference  to  Articles  85  or  86  in  this  Regulation  shall  be 

understood to mean Articles 4 or 5 of this Agreement respectively. 

5.  87/3975/EEC 

Council  Regulation  of  14 December  1987 laying down  the procedures 

for the application of the rules of competition to undertakings in 

the air transport sector. 

Articles  1-7, 8 para  1 and 2, 9,  10, 11, 12 with the exception of 

para 3, 13 with the exception of para 3, 14-20 

Any  reference  to  Articles  85  or  86  in  this  Regulation  shall  be 

understood to mean Articles 4 or 5 of this Agreement respectively. 

6.  87/3976/EEC 

- 24 -

Council  Regulation  of  14  December  1987  on  the  application  of 

Article  85  (3) of  the Treaty  to  certain  categories  of  agreements 

and concerted practices in the air transport sector. 

Articles 1-5, 7, 9 

Any  reference  to  Articles  85  or  86  in  this  Regulation  shall  be 

understood to mean Articles 4 or 5 of this Agreement respectively. 

7.  90/2344/EEC 

Council Regulation of 24 July 1990 amending Regulation (EEC) 

No  3976/87  on the application  of Article 85  (3) of  the Treaty to 

certain categories of agreements and concerted practices in the air 

transport sector 

Articles 1, 2 

Any  reference  to  Articles  85  or  86  in  this  Regulation  shall  be 

understood to mean Articles 4 or 5 of this Agreement respectively. 

- 25 -

8.  91/82/EEC 

Commission  Regulation  of  5  December  1990  on  the  application  of 

Article  85  (3) of the Treaty to certain categories of agreements, 

decisions  and  concerted  practices  concerning  ground  handling 

services 

Articles 1-5 

Any  reference  to  Articles  85  or  86  in  this  Regulation  shall  be 

understood to mean Articles 4 or 5 of this Agreement respectively. 

9.  91/83/EEC 

Commission  Regulation  of  5  December  1990  on  the  application  of 

Article  85(3)  of  the  Treaty  to  certain  categories  of  agreements 

between  undertakings  relating  to computer  reservation  systems  for 

air transport services 

Articles 1-13 

Any  reference  to  Articles  85  or  86  in  this  Regulation  shall  be 

understood to mean Articles 4 or 5 of this Agreement respectively. 

- 26 -

10. 91/84/EEC 

Commission  Regulation  of  5  December  1990  on  the  application  of 

Article  85(3) of  the Treaty  to  certain  categories  of agreements, 

decisions  and  concerted  practices  concerning  joint  planning  and 

coordination  of  capacity,  consultations  on  passenger  and  cargo 

tariffs  rates  on  scheduled  air  services  and  slot  allocations  at 

airports 

Articles 1-6. 

Any  reference  to  Articles  85  or  86  in  this  Regulation  shall  be 

understood to mean Articles 4 or 5 of this Agreement respectively. 

11. 91/295/EEC 

Council Regulation of 4 February 1991 establishing common rules for 

a denied boarding compensation system in scheduled air transport 

Articles 1-10 

12. 89/2299/EEC 

Council  Regulation  of  24 July  1989  introducing  a code of  conduct 

for the use of computer reservation systems. 

Articles 1-22 

- 27 -

13. 80/1266/EEC 

Council  Directive  of  16  December  1980  on  future  cooperation  and 

mutual  assistance  between  the  Member  States  in  the  field  of  air 

accident  investigation 

Articles 1-2 

14. 80/51/EEC 

Council  Directive  of  20 December  1979 on  the  limitation  of  noise 

emissions  from  subsonic  aircraft  as  amended  by  Council  Directive 

83/206/EEC of 21 April 1983 

Articles 1-8 

15. 89/629/EEC 

Council  Directive  of  4  December  1989  on  the  limitation  of  noise 

emission from civil subsonic jet aeroplanes 

Articles 1-7 

- 28 -

16. 90/314/EEC 

Council Directive on package travel, package holidays and package 

tours 

Articles 1-9 

17. 89/4064/EEC 

Council  Regulation  of  21  December  1989  on  the  control  of 

concentrations between undertakings 

Articles 1-8, 9 para 1-8, 10-18, 19 para 1 and 2, 20-23, 25 

Any  reference  to  Articles  85  or  86  in  this  Regulation  shall  be 

understood to mean Articles 4 or 5 of this Agreement respectively. 

18. 80/723/EEC 

Commission  Directive  of  25  June  1980  on  the  transparency  of 

financial relations between Member States and public undertakings, 

as amended by Commission Directive 85/413/EEC of 24 July 1985. 

Articles 1-8 

- 29 -

19. 90/2367/EEC 

Commission  Regulation  of  25 July  1990 on  the  notifications,  time 

limits and and hearings provided for in Council Regulation 4064/89 

Articles 1-20 

20. 88/4261/EEC 

Commission  Regulation  of  16 December 1988  on  the  complaints, 

applications  and  hearings  provided  for  in  Council  Regulation 

3975/87 

Articles 1-15 

- 30 -

PROTOCOL 1 

THE CONTRACTING PARTIES 

considering  that whereas  the Agreement  envisages  the incorporation of 

future legislation in civil aviation; 

whereas the EEC has already announced legislative action in a number of 

areas; 

whereas such action should not lead to future difficulties. 

are agreed that action i.a. in the following areas : 

-  Consultation between airports and users 

Mutual acceptance of Licences and harmonisation 

Slot allocation 

Licensing of air carrier and allocation of route rights 

-  Common specifications for ATC equipment 

Cabotage 

Value added tax 

-  Abolition of tax free sales between the Contracting Parties 

Relations with third countries 

__  Predatory practices 

shall be considered under Article 12 for inclusion in the Agreement. 

31 -

PROTOCOL 2 

THE CONTRACTING PARTIES 

considering that the agreements must be implemented  in the same way for 

all the Contracting Parties; 

whereas  the  Council  and  the  Commission  of  the  EEC  have  already 

pronounced  indications  of  importance  for  implementation  of  specific 

articles 

are agreed that : 

1.  In applying the matching provisions of Article  3(5) in point  2 of 

the Annex  in respect  of non-scheduled  air  fares it  is the product 

which is in the market which must be equivalent in terms of quality 

and  conditions.  Elements  of  importance  for the  assessment  would 

be  the  inclusion  or  not  of  additional  services  such  as 

accommodation and also whether the non-scheduled product is legally 

on  the  market  in  a  regular  way  according  to  the  definition  in 

Article  2(b)(iii)(2)  while  the  Commission  may  need  to  assess 

matching  of  fares  with  respect  to  the  rules  concerning  predatory 

behaviour. 

- 32 -

2.  Member  States  which  benefit  from  the  special  conditions  under 

paragraph 3 of Article 10 in point 1 of the Annex will not, on pain 

of losing such special conditions which they have, grant new rights 

regarding  the  airports  concerned,  on  terms which  would  put  their 

Community  partners  at  a  disadvantage  by  comparison  with  carriers 

from third countries outside the Community. 

and that 

3.  In  a  situation  where  Article  12(2)  in  point  1  of  the  Annex  is 

invoked,  the  Commission  will  examine,  in  addition  to  capacity 

utilization, the marketing efforts and the products of air carriers 

from the Member State with the lower market share and will consider 

whether  a  higher  market  share  should  normally  be  expected. 

If 

this is the case, the Commission will further consider whether the 

possibilities  of  the  air  carriers  concerned  of  competing  in  the 

market  are  reduce  by  virtue,  in  particular  of  difficulties 

experienced by congestion at airports, market  structure and/or the 

direct impact of the large presence of non-scheduled traffic. 

In arriving at a decision to reduce the 7.5 percentage points, the 

Commission will be guided by the following relationships : 

Market share 

Reduced growth rate 

between 30 and 25% 

less than 25% 

5 

4 

- 33 -

PROTOCOL 3 

THE CONTRACTING PARTIES 

affirm the need for continuation and intensification of the work in 

Eurocontrol  to  tackle  and  resolve  the  problems  of  air  traffic 

congestion in Europe ; 

note  that  accession  to  the  Eurocontrol  Convention  of  all  Member 

States should be seriously considered ; 

invite Member States to co-operate to ensure that more airspace is 

made available for civil traffic and that it is used more flexibly 

and rationally ; 

-  welcome the efforts made  in the relevant  fora to make progress in 

establishing  compatible  technical  and  performance  specifications 

for air traffic control systems and equipments. 

ISSN 0254-1475 

COM(91) 299 final 

DOCUMENTS 

EN 

1107 

Catalogue number : CB-CO-91-378-EN-C 

ISBN 92-77-75488-5 

Office for Official Publications of the European Communities 

L-2985 Luxembourg