Public service obligations — Communication from the EFTA Surveillance Authority under Article 4.1(a) of the Act referred to in point 64a in Annex XIII of the EEA Agreement (Council Regulation (EEC) No 2408/92 of 23 July 1992 on access for Community air carriers to intra-Community air routes) — Imposition of new public service obligations in respect of scheduled air services on the route areas 1 and 2 (Finnmark and North-Troms)
Date: 2003-12-04
Institutions: EFTA Surveillance Authority
Subjects: air transport, airline, provision of services, public service

C 294/18

EN

Official Journal of the European Union

4.12.2003

PUBLIC SERVICE OBLIGATIONS

Communication from the EFTA Surveillance Authority under Article 4.1(a) of the Act referred to
in point 64a in Annex XIII of the EEA Agreement (Council Regulation (EEC) No 2408/92 of 23
July 1992 on access for Community air carriers to intra-Community air routes)

Imposition of new public service obligations in respect of scheduled air services on the route areas
1 and 2

(Finnmark and North-Troms)

(2003/C 294/09)

1: — ROUTES BETWEEN KIRKENES, VADSØ, BÅTSFJORD, BERLEVÅG, MEHAMN, HONNINGSVÅG,

HAMMERFEST AND ALTA

— VARDØ–KIRKENES V.V.

1. INTRODUCTION

Account shall be taken of the public demand for air travel.

to Article 4.1(a) of Council Regulation (EEC) No
Pursuant
2408/92 of 23 July 1992 on access for Community air
carriers to intra-Community air routes, Norway has decided
to impose public service obligations as of 7 July 2004 on
the following scheduled air services:

— on a network comprising routes between Kirkenes, Vadsø,
Båtsfjord, Berlevåg, Mehamn, Honningsvåg, Hammerfest
and Alta

— Vardø–Kirkenes v.v.

2. DEFINITION

In this publication single-carrier service means that the carrier
shall carry passengers along an entire route within the network
encompassed by the public service obligations. Maximum
travel time on each required single-carrier service is 3 hours
30 minutes from first departure to final arrival.

3. THE PUBLIC SERVICE OBLIGATIONS INCLUDE THE
FOLLOWING

3.1. GENERAL

If the number of seats occupied to and from either Kirkenes,
Alta, Vadsø or Hammerfest during the period 1 January to 30
June or 1 August to 30 November exceeds 70 per cent of the
number of seats offered, the carrier shall increase the seating
capacity in accordance with the rules laid down by the Ministry
of Transport and Communications in the annex to this publi-
cation.

If the number of seats occupied to and from either Kirkenes,
Alta, Vadsø or Hammerfest during the period 1 January to 30
June or 1 August to 30 November is lower than 35 per cent of
the number of seats offered, the carrier may reduce the seating
capacity in accordance with the rules laid down by the Ministry
of Transport and Communications in the annex to this publi-
cation.

All times specified are local.

3.2. REQUIREMENTS AS TO MINIMUM FREQUENCIES, SEATING
CAPACITY, ROUTING AND TIMETABLES FOR THE ROUTES
BETWEEN KIRKENES, VADSØ, BÅTSFJORD, BERLEVÅG, MEHAMN,
HONNINGSVÅG, HAMMERFEST AND ALTA

Different requirements apply to some of the service airports,
depending on the type of aircraft used for the operations.

Option 1: Apply to operations with aircraft registered for
minimum 30 passengers and with pressurised cabin.

Option 2: Apply to operations with aircraft registered for
minimum 15 passengers.

3.2.1. REQUIREMENTS FOR MONDAY TO FRIDAY

The requirements apply throughout the year.

When connections with air services to and from Tromsø are
required, schedules must allow passengers to travel to or from
Tromsø with no more than one change of aircraft en route.

The following requirements apply as to departures and arrivals,
routing and timetables:

Alta

— On Monday to Friday combined the seating capacity offered

shall be at least 550 seats both to and from Alta.

— Single-carrier services between other airports and Alta and

vice versa, as required in this publication.

Hammerfest

— A minimum of five daily departures and arrivals.

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— On Monday to Friday combined the seating capacity offered
shall be at least 925 seats both to and from Hammerfest.

— Minimum two single-carrier return services to Vadsø. First
in Vadsø shall be no later than 10.30 and last

arrival
departure from Vadsø no earlier than 18.30.

— Minimum three single-carrier return services to Vadsø. In
both directions first arrival shall be no later than 10.30 and
last departure no earlier than 18.30.

— Single-carrier return service to Kirkenes.

— Single-carrier return service to Alta.

— Single-carrier return service to Hammerfest.

— Single-carrier

and
between
Hammerfest and vice versa, as required in this publication.

airports

services

other

Kirkenes

— On Monday to Friday combined the seating capacity offered
shall be at least 725 seats both to and from Kirkenes.

— Minimum one daily single-carrier return service to Alta,

with a maximum of one intermediate stop.

— Single-carrier services between other airports and Kirkenes

and vice versa, as required in this publication.

— The schedules must ensure connections with at least two air

services both to and from Tromsø.

or

Option 2

A minimum of six daily departures and arrivals, ensuring the
following:

— Minimum three single-carrier return services to Kirkenes.
First arrival in Kirkenes shall be no later than 11.00 and
last departure from Kirkenes no earlier than 19.00.

— Minimum two single-carrier return services to Vadsø. First
in Vadsø shall be no later than 10.30 and last

arrival
departure from Vadsø no earlier than 18.30.

Vadsø

— A minimum of nine daily departures and arrivals.

— Single-carrier return service to Alta.

— On Monday to Friday combined the seating capacity offered
shall be at least 1 650 seats both to and from Vadsø.

— Minimum three single-carrier return services to Kirkenes,
without intermediate stops. First arrival
in Kirkenes shall
be no later than 11.00 and last departure from Kirkenes
no earlier than 19.00. First arrival
in Vadsø shall be no
later than 11.30 and last departure from Vadsø no earlier
than 18.30.

— Minimum two single-carrier return services to Alta. In both
directions first arrival shall be no later than 10.30. Last
departure shall be no earlier than 14.00 from Vadsø and
no earlier than 15.00 from Alta.

— Single-carrier services between other airports and Vadsø

and vice versa, as required in this publication.

Båtsfjord

Option 1

A minimum of four daily departures and arrivals, ensuring the
following:

— Single-carrier return service to Hammerfest.

— The schedules must ensure connections with at least two air

services both to and from Tromsø.

Berlevåg

Option 1

A minimum of three daily departures and arrivals, ensuring the
following:

— Single-carrier return service to Kirkenes, with arrival

Kirkenes no later
Kirkenes no earlier than 19.00.

than 11.00 and departure

in
from

— Single-carrier return service to Vadsø, with arrival in Vadsø
no later than 10.30 and departure from Vadsø no earlier
than 18.30.

— Single-carrier return service to Alta.

— Single-carrier return service to Hammerfest.

— The schedules must ensure connections with at least two air

— Minimum two single-carrier return services to Kirkenes.
First arrival in Kirkenes shall be no later than 11.00 and
last departure from Kirkenes no earlier than 19.00.

or

services both to and from Tromsø.

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Official Journal of the European Union

4.12.2003

Option 2

— Single-carrier return service to Kirkenes.

A minimum of four daily departures and arrivals, ensuring the
following:

— Minimum two single-carrier return services to Kirkenes.
First arrival in Kirkenes shall be no later than 11.00 and
last departure from Kirkenes no earlier than 19.00.

— Single-carrier return service to Vadsø, with arrival in Vadsø
no later than 10.30 and departure from Vadsø no earlier
than 18.30.

— Single-carrier return service to Alta.

— Single-carrier return service to Hammerfest.

— The schedules must ensure connections with at least two air

services both to and from Tromsø.

Mehamn

Option 1

— The schedules must ensure connections with at least two air

services both to and from Tromsø.

Honningsvåg

Option 1

A minimum of four daily departures and arrivals, ensuring the
following:

— Minimum two single-carrier return services to Hammerfest.
First arrival in Hammerfest shall be no later than 8.30. In
both directions last departure shall be no earlier than
17.00.

— Minimum two single-carrier return services to Vadsø. In
both directions last departure shall be no earlier than
16.00.

— Single-carrier return service to Kirkenes.

A minimum of four daily departures and arrivals, ensuring the
following:

— The schedules must ensure connections with at least two air

services both to and from Tromsø.

— Minimum two single-carrier return services to Hammerfest.
First arrival in Hammerfest shall be no later than 8.30. In
both directions last departure shall be no earlier than
17.00.

or

Option 2

— Minimum two single-carrier return services to Vadsø. In
both directions last departure shall be no earlier than
16.00.

A minimum of six daily departures and arrivals, ensuring the
following:

— Single-carrier return service to Alta.

— Single-carrier return service to Kirkenes.

— Minimum three

single-carrier

to
Hammerfest. First arrival in Hammerfest shall be no later
than 8.30. In both directions last departure shall be no
earlier than 17.00.

services

return

— The schedules must ensure connections with at least two air

services both to and from Tromsø.

— Minimum two single-carrier return services to Vadsø. In
both directions last departure shall be no earlier than
16.00.

or

Option 2

A minimum of six daily departures and arrivals, ensuring the
following:

— Minimum three

single-carrier

to
Hammerfest. First arrival in Hammerfest shall be no later
than 8.30. In both directions last departure shall be no
earlier than 17.00.

services

return

— Minimum two single-carrier return services to Vadsø. In
both directions last departure shall be no earlier than
16.00.

— Single-carrier return service to Alta.

— Single-carrier return service to Kirkenes.

— The schedules must ensure connections with at least two air

services both to and from Tromsø.

3.2.2. SATURDAY TO SUNDAY

The requirements apply throughout the year.

The following requirements apply to Saturday and Sunday
combined:

— The capacity offered shall be at least 110 seats both to and
from Alta, at least 185 seats both to and from Hammerfest,
at least 145 seats both to and from Kirkenes and at least
330 seats both to and from Vadsø.

4.12.2003

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Official Journal of the European Union

C 294/21

— Minimum number of departures and arrivals at least as on
each day Monday to Friday for Hammerfest, Vadsø,
Båtsfjord, Berlevåg, Mehamn and Honningsvåg.

— Minimum two single-carrier return services Honningsvåg–

Hammerfest.

— Single-carrier

return service

to Vadsø from Båtsfjord,

Berlevåg, Mehamn and Honningsvåg.

— Single-carrier return service to Hammerfest from Båtsfjord,

Berlevåg and Mehamn.

— Single-carrier return service Vadsø–Alta.

— Single-carrier return service Kirkenes–Alta.

— Number of connections with air services

to and from
least as on each day Monday to Friday for

Tromsø at
Båtsfjord, Berlevåg, Mehamn and Honningsvåg.

The following requirements apply to both Saturday and Sunday:

— Departure and arrival at each of

the airports Vadsø,
Båtsfjord, Berlevåg, Mehamn, Honningsvåg, Hammerfest,
Kirkenes and Alta.

To

g
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v
e
l
r
e
B

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r
o
j
f
s
t
˚a
B

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t
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A

t
s
e
f
r
e
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m
a
H

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s
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M

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s
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— 1 340 1 305

590 1 160 1 305 1 340 1 305

From

Alta

Berlevåg

1 340 — 475 1 180

795

940

475

795

Båtsfjord

1 305

475 — 1 180

940

795

590

740

Hammerfest

590 1 180 1 180 — 795 1 305 1 035 1 305

Honningsvåg

1 160

795

940

795 — 1 305

590 1 180

Kirkenes

1 305

940

795 1 305 1 305 — 1 120

475

Mehamn

1 340

475

590 1 035

590 1 120 — 980

Vadsø

1 305

795

740 1 305 1 180

475

980 —

— For each subsequent operating year the maximum fares shall
be adjusted on 1 April within the limit of the consumer
price index for the 12-month period ending 15 February
the same year, as made public by Statistics Norway

(http://www.ssb.no/english/subjects/08/02/10/kpi_en/).

— The

carrier
agreements
discounts available under such agreements.

interline
shall be party to the domestic
in force at any time, and shall offer all

— Single-carrier return service Vadsø–Hammerfest.

— Social discounts conforming to the usual practice shall be

offered.

— Single-carrier return service Vadsø–Kirkenes.

— Connection both to and from Tromsø for Båtsfjord,

Berlevåg, Mehamn and Honningsvåg.

3.2.3. AIRCRAFT CATEGORY

Aircraft registered for minimum 15 passengers shall be used for
the required flights.

Carriers' attention is especially drawn to technical and operative
conditions applying at the airports, including short runways at
and
Vadsø,
Hammerfest. For further information, please contact:

Berlevåg, Mehamn, Honningsvåg

Båtsfjord,

Luftfartstilsynet (Civil Aviation Authority)
PO Box 8050 Dep.
N-0031 Oslo
Tel. (47) 23 31 78 00.

3.2.4. FARES

— Maximum basic one-way fares

in the
operating year beginning 7 July 2004 must not exceed the
amounts in NOK stated in the table below.

(fully flexible)

— The published maximum fares apply when the carrier itself
is responsible for carriage on the entire specified route
within the network encompassed by the public service obli-
gations and apply to all required single-carrier services, cf.
section 3.2.1 and 3.2.2, regardless of routing.

— For non-required single-carrier services within the route
network encompassed by the public service obligations,
the published fares apply as maximum fares for direct or
through services, or geographically natural routing. In other
cases the fares must not exceed the level resulting from the
calculation system used for the interline agreements.

3.3. VARDØ–KIRKENES V.V.

3.3.1. MINIMUM FREQUENCIES, SEATING CAPACITY, ROUTING

AND TIMETABLES

The requirements apply throughout the year. A daily service
obligation applies in both directions.

Frequencies

Minimum three daily return services Monday to Friday and
minimum three return services Saturday and Sunday combined.

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4.12.2003

Seating Capacity

— In both directions at

Monday to Friday combined and at
Saturday and Sunday combined.

least 225 seats shall be offered
least 45 seats

— If the number of seats occupied during the period 1 January
to 30 June or 1 August to 30 November exceeds 70 per
cent of
the carrier shall
increase the seating capacity in accordance with the rules
laid down by the Ministry of Transport and Communi-
cations in the annex to this publication.

the number of seats offered,

— If the number of seats occupied during the period 1 January
to 30 June or 1 August to 30 November is lower than 35
per cent of the number of seats offered, the carrier may
reduce the seating capacity in accordance with the rules laid
down by the Ministry of Transport and Communications in
the annex to this publication.

Routing

The required services shall be non-stop if aircraft registered for
less than 20 passengers are used. When using aircraft registered
for 20 or more passengers,
the required services shall be
through flights with a maximum of one intermediate stop.

Timetables

Account shall be taken of the public demand for air travel.

In addition, the following apply to the required flights on
Monday to Friday (local times):

Last departure from Kirkenes shall be at least six hours later
than the first arrival in Kirkenes.

3.3.2. AIRCRAFT CATEGORY

Aircraft registered for minimum 15 passengers shall be used
for the required flights.

attention is

Carriers'
and
operative conditions applying at the airports, including short
runway at Vardø. For further information, please contact:

especially drawn to technical

Luftfartstilsynet (Civil Aviation Authority)
PO Box 8050 Dep.
N-0031 Oslo
Tel. (47) 23 31 78 00.

3.3.3. FARES

— Maximum basic one-way fare

in the
operating year beginning 7 July 2004 must not exceed
NOK 625,00.

(fully flexible)

(http://www.ssb.no/english/subjects/08/02/10/kpi_en/).

— The carrier
agreements
discounts available under such agreements.

shall be party to the domestic interline
in force at any time, and shall offer all

— Social discounts conforming to the usual practice shall be

offered.

3.4. SERVICE CONTINUITY

The number of flights cancelled for reasons directly attributable
to the carrier must not exceed 1,5 per cent of the planned
number of flights on an annual basis, in accordance with the
approved time schedule.

3.5. COOPERATION ARRANGEMENTS

Following a tender procedure, which limits access to the routes
encompassed by the public service obligations to one carrier,
these conditions apply:

Fares

— All connecting fares to/from other air services shall be
terms for all carriers. Exempted from
offered on equal
this are connecting fares to/from other services carried
out by the tenderer, provided that the fare is maximum
40 per cent of the fully flexible fare.

— Bonus points from frequent flyer programmes can neither

be earned nor redeemed on the flights.

Transfer Conditions

All conditions set out by the carrier
passengers
connecting times
baggage, shall be objective and non-discriminatory.

to and from other carriers'

and through check-in of

for the transfer of
including
and

routes,

tickets

4. OTHER

These public service obligations replace those published as (1A
and 1B) in Official Journal of the European Communities C 112 of
9 May 2002, as far as scheduled air services between Vadsø,
Båtsfjord, Berlevåg, Mehamn, Honningsvåg, Hammerfest,
Kirkenes and Alta, and Vardø–Kirkenes v.v. are concerned.

5. INFORMATION

Further information can be obtained from:

Ministry of Transport and Communications
PO Box 8010 Dep.
N-0030 Oslo
Tel. (47) 22 24 83 53
Fax (47) 22 24 95 72.

— For each subsequent operating year the maximum fare shall
be adjusted on 1 April within the limit of the consumer
price index for the 12-month period ending 15 February
the same year, as made public by Statistics Norway

This documentation is also available on the Internet:

http://www.odin.dep.no/sd/norsk/aktuelt/anbud

4.12.2003

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Official Journal of the European Union

C 294/23

2: HASVIK–TROMSØ V.V., HASVIK–HAMMERFEST V.V., SØRKJOSEN–TROMSØ V.V.

1. INTRODUCTION

Pursuant
to Article 4.1(a) of Council Regulation (EEC) No
2408/92 of 23 July 1992 on access for Community air
carriers to intra-Community air routes, Norway has decided
to impose public service obligations as of 7 July 2004 in
respect of scheduled air services on the following routes:

— In both directions at least one of the required daily flights
Monday to Friday shall be non-stop. The remainder may
have a maximum of two intermediate stops, of which one
may be entailed by a change of aircraft provided that the
connecting time does not exceed 45 minutes and that the
carrier serves the entire route to and from Tromsø.

Hasvik–Tromsø v.v., Hasvik–Hammerfest
Tromsø v.v.

v.v., Sørkjosen–

Hasvik–Hammerfest

2. THE PUBLIC SERVICE OBLIGATIONS INCLUDE THE
FOLLOWING

2.1. GENERAL

If the number of seats occupied Hasvik–Tromsø v.v., Hasvik–
Hammerfest v.v. or Sørkjosen–Tromsø v.v. during the period 1
January to 30 June or 1 August to 30 November exceeds 70
per cent of
the carrier shall
increase the seating capacity in accordance with the rules laid
down by the Ministry of Transport and Communications in the
annex to this publication.

the number of seats offered,

If the number of seats occupied Hasvik–Tromsø v.v., Hasvik–
Hammerfest v.v. or Sørkjosen–Tromsø v.v. during the period 1
January to 30 June or 1 August to 30 November is lower than
35 per cent of the number of seats offered, the carrier may
reduce the seating capacity in accordance with the rules laid
down by the Ministry of Transport and Communications in the
annex to this publication.

Account shall be taken of the public demand for air travel.

Minimum one daily return service Monday to Friday, with
arrival in Hammerfest no later than 8.30 and departure from
Hammerfest no earlier than 14.30.

On a weekly basis at least 120 seats shall be offered both to
and from Hasvik on the Hasvik–Tromsø and Hasvik–
Hammerfest routes combined.

Sørkjosen–Tromsø v.v.

The requirements apply throughout the year. A daily service
obligation applies in both directions.

Frequencies and Routing

— Minimum two daily return services Monday to Friday.

— Minimum two return services Saturday and Sunday

combined.

— The required services must be non-stop.

All times specified are local.

Seating Capacity

2.2. REQUIREMENTS AS TO MINIMUM FREQUENCIES, SEATING
CAPACITY, ROUTING AND TIMETABLES

In both directions at least 250 seats shall be offered Monday to
Friday combined and at least 50 seats Saturday and Sunday
combined.

2.2.1. REQUIREMENTS

Timetables

Hasvik–Tromsø v.v. and Hasvik–Hammerfest v.v.

The requirements apply throughout the year.

Hasvik–Tromsø

— Minimum two daily return services Monday to Friday, of
which at least one must be scheduled to connect with air
services Tromsø–Oslo v.v.

— Minimum one return service on Sunday, scheduled to

connect with air services Tromsø–Oslo v.v.

The required services must be scheduled to connect with air
routes Tromsø–Oslo v.v.

In addition, the following apply to the required flights on
Monday to Friday:

— First arrival in Tromsø shall be no later than 9.30 and last

departure from Tromsø no earlier than 18.00.

— First departure from Tromsø shall be no later than 11.30
and last departure from Sørkjosen no earlier than 17.00.

— On Monday to Friday first arrival in Tromsø shall be no
later than 10.00 and last departure from Tromsø no earlier
than 13.30.

2.2.2. AIRCRAFT CATEGORY

Aircraft registered for minimum 15 passengers shall be used
for the required flights.

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Official Journal of the European Union

4.12.2003

attention is

especially drawn to technical

and
Carriers'
operative conditions applying at the airports, including short
runways at Hasvik, Hammerfest and Sørkjosen. For further
information, please contact:

Luftfartstilsynet (Civil Aviation Authority)
PO Box 8050 Dep.
N-0031 Oslo
Tel. (47) 23 31 78 00.

2.3. FARES

— Maximum basic one-way fares

in the
operating year beginning 7 July 2004 must not exceed
these amounts in NOK:

(fully flexible)

Hasvik–Tromsø 1 260,00

Hasvik–Hammerfest 590,00

Sørkjosen–Tromsø 670,00

2.5. COOPERATION ARRANGEMENTS

Following a tender procedure, which limits access to the routes
encompassed by the public service obligations to one carrier,
these conditions apply:

Fares

— All connecting fares to/from other air services shall be
offered on equal
terms for all carriers. Exempted from
this are connecting fares to/from other services carried
out by the tenderer, provided that the fare is maximum
40 per cent of the fully flexible fare.

— Bonus points from frequent flyer programmes can neither

be earned nor redeemed on the flights.

Transfer conditions

All conditions set out by the carrier
passengers
connecting times
baggage, shall be objective and non-discriminatory.

to and from other carriers'

and through check-in of

for the transfer of
including
and

routes,

tickets

— For each subsequent operating year the maximum fares
the
shall be adjusted on 1 April within the limit of
consumer price index for the 12-month period ending 15
February the same year, as made public by Statistics
Norway

(http://www.ssb.no/english/subjects/08/02/10/kpi_en/)

— The carrier
agreements
discounts available under such agreements.

shall be party to the domestic interline
in force at any time, and shall offer all

— Social discounts conforming to the usual practice shall be

offered.

2.4. SERVICE CONTINUITY

The number of flights cancelled for reasons directly attributable
to the carrier must not exceed 1,5 per cent of the planned
number of flights on an annual basis, in accordance with the
approved time schedule.

3. OTHER

These public service obligations replace those published as (2)
in Official Journal of the European Communities C 112 of 9 May
2002, as far as scheduled air services on the routes Hasvik–
Tromsø v.v., Hasvik–Hammerfest v.v. and Sørkjosen–Tromsø
v.v. are concerned.

4. INFORMATION

Further information can be obtained from:

Ministry of Transport and Communications
PO Box 8010 Dep.
N-0030 Oslo
Tel. (47) 22 24 83 53
Fax (47) 22 24 95 72.

This documentation is also available on the Internet:

http://www.odin.dep.no/sd/norsk/aktuelt/anbud

ANNEX TO THE IMPOSITIONS OF PUBLIC SERVICE OBLIGATIONS IN RESPECT OF SCHEDULED AIR SERVICES IN
NORWAY

ADJUSTMENT OF PRODUCTION/AVAILABLE SEATS — PRODUCTION ADJUSTMENT CLAUSE

1. Purpose of the production adjustment clause

The purpose of the production adjustment clause is to ensure that supplied capacity/seats offered by the operator is
adjusted to changes in market demand. Whenever the number of passengers increases significantly and exceeds the
following specified limits for the percentage of seats occupied at any time (the passenger load factor), the operator shall
increase available seats offered. The operator may accordingly decrease available seats offered when the number of
passengers decreases significantly. See specification in 3.

2. Periods for measuring passenger load factors

The periods during which the passenger load factor shall be monitored and assessed range from 1 January to 30 June
inclusive and 1 August to 30 November inclusive.

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Official Journal of the European Union

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3. Conditions for changing production/available seats offered

3.1. Conditions for increasing production

3.1.1. An increase in production/available seats offered shall take place when the average passenger load factor on each
single route encompassed by public service obligations is higher than 70 per cent. When the average passenger
load factor on these routes exceeds 70 per cent in any of the periods mentioned in 2, the operator shall increase
production/available seats offered by at least 10 per cent on these routes, at latest from the start of the following
IATA traffic season. Production/available seats offered shall be increased at least so that the average passenger
load factor does not exceed 70 per cent.

3.1.2. When increasing production/available seats offered according to the above, the new production may take place
by using aircraft with lower seating capacity than specified in the original tender, if preferred by the operator.

3.1.3. For the route network encompassed by imposition 1 of public service obligations, the need for increase in
number of seats offered shall be assessed on the basis of the average passenger load factor to and from each of
the following destinations: Kirkenes, Alta, Hammerfest and Vadsø.

3.2. Conditions for decreasing production

3.2.1. A decrease in production/available seats offered may take place when the average passenger load factor on each
single route encompassed by public service obligations is lower than 35 per cent. When the average passenger
load factor on these routes is lower than 35 per cent in any of the periods mentioned in 2, the operator may
decrease production/available seats offered by no more than 25 per cent on these routes from the first day after
the end of the above mentioned periods.

3.2.2. For the route network encompassed by imposition 1 of public service obligations, the need for adjustments
downwards in number of seats offered shall be assessed on the basis of the average passenger load factor to and
from each of the following destinations: Kirkenes, Alta, Hammerfest and Vadsø.

3.2.3. On routes with more than two daily frequencies offered in each direction, reduction in production according to
3.2.1 and 3.2.2 shall take place by reducing frequencies offered. The only exception from this is when the
operator uses aircraft with larger seating capacity than the minimum specified in the imposition of public service
obligations. The operator may then use smaller aircraft, however, not with lower seating capacity than the
minimum specified in the imposition of public service obligations.

3.2.4. On routes with only one or two daily frequencies offered in each direction, reduction in available seats offered
can only take place by using aircraft with lower seating capacity than specified in the imposition of public service
obligations.

4. Procedures for changes in production

4.1. The Norwegian Ministry of Transport and Communications has the responsibility subject to law for approving
proposed time schedules submitted by the operator, including changes in production. Reference is made to Circular
N-8/97 by the Norwegian Ministry of Transport and Communications, included in the tender file.

4.2. When production shall be increased according to 3.1, time schedules for new production/new seats should be

agreed between the operator and the county (counties) as administrative unit affected.

4.3. If new production shall be offered according to 3.1, and the operator and the county (counties) as the adminis-
trative unit affected cannot agree upon time schedules according to 4.2, the operator can seek approval according
to 4.1 for a different time schedule for the new production/new seats offered from the Norwegian Ministry of
Transport and Communications. This does not mean that the operator may apply for approval of a time schedule
that does not include the required increase in production. There must exist substantial reasons for time schedules
for new production/new seats diverging from those which could be agreed by the county (counties) as the
administrative unit affected according to 4.2, as a condition for the Ministry to approve such a proposal from
the operator.

5. Unchanged financial compensation when changing production

5.1. The financial compensation to the operator remains unchanged when increasing production according to 3.1.

5.2. The financial compensation to the operator remains unchanged when decreasing production according to 3.2.