Common Position (EC) No 11/2004 of 18 December 2003 adopted by the Council, acting in accordance with the procedure referred to in Article 251 of the Treaty establishing the European Community, with a view to adopting a regulation of the European Parliament and of the Council concerning protection against subsidisation and unfair pricing practices causing injury to Community air carriers in the supply of air services from countries not members of the European Community
Date: 2003-12-18
Institutions: Council of the European Union
Subjects: air transport, anti-subsidy proceeding, provision of services, restriction on competition, tariff barrier, third country

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COMMON POSITION (EC) No 11/2004

adopted by the Council on 18 December 2003

with a view to adopting Regulation (EC) No . . ./2004 of the European Parliament and of the
Council of . . . concerning protection against subsidisation and unfair pricing practices causing
injury to Community air carriers in the supply of air services from countries not members of
the European Community

(2004/C 66 E/02)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 80(2) thereof,

(6) The Community should be able to take action to redress
such unfair practices resulting from subsidies granted by
the government of a country which is not a member of
the Community; the Community should also be able to
address unfair pricing practices.

Having regard to the proposal from the Commission (1),

Having regard to the Opinion of the European Economic and
Social Committee (2),

Acting in accordance with the procedure laid down in Article
251 of the Treaty (3),

Whereas:

(1) The competitive position of Community air carriers when
providing air services to, via or from the Community
could be adversely affected by unfair and discriminatory
practices of non-Community air carriers providing like air
services.

(2) Such unfair and discriminatory practices may result from
subsidisation or other
aid granted by a
government or regional body or other public organisation
of a country not being a member of the Community or
from certain pricing practices by a non-Community air
carrier which benefit from non-commercial advantages.

forms of

(3)

It is necessary to define the redressive measures to be
taken against such unfair practices.

(4) Within the Community there are strict rules regarding the
granting of state aid to air carriers, and for Community air
carriers not to be placed at a competitive disadvantage and
suffer injury there is a need for an instrument to offer
protection against non-Community air carriers who are
subsidised or receive other benefits from governments.

(5) This Regulation is not intended to replace air services
agreements with third countries that can be used to deal
effectively with practices covered by this Regulation;
in
cases where a legal
instrument exists at Member State
level which would enable a satisfactory response to be
made, that instrument would take precedence over this
Regulation, which would be subsidiary to it.

(1) OJ C 151 E, 25.6.2002, p. 285.
(2) OJ C 61, 14.3.2003, p. 29.
(3) Opinion of the European Parliament of 14 January 2003 (OJ C
38 E, 12.2.2004, p. 76), Council Common Position of 18
December 2003 and Position of the European Parliament of . . .
(not yet published in the Official Journal).

(7)

(8)

(9)

It should be determined when a subsidy shall be deemed
to exist and according to which principles it should be
countervailable, in particular whether the subsidy has been
targeted at certain enterprises or sectors or is contingent
upon air service supply to third countries.

In determining the existence of a subsidy, it is necessary to
demonstrate that there has been a financial contribution
by a government or regional body or other public organi-
sation via a transfer of funds or that debts of any kind
representing government revenue that are otherwise due
are foregone or not collected, and that a benefit has
thereby been conferred on the recipient enterprise.

It should be determined when an unfair pricing practice
shall be deemed to exist; an examination of the pricing
practices of a third-country air carrier should be restricted
to those limited number of cases where the air carrier is
benefiting from a non-commercial
advantage which
cannot be clearly identified as a subsidy.

(10) It should be made clear that an unfair pricing practice can
be deemed to exist only in cases where that practice is
clearly distinguishable from normal competitive pricing
practices;
the Commission should develop a detailed
methodology for determining the existence of unfair
pricing practices.

(11) It is furthermore desirable to lay down clear and detailed
guidance as to the factors which may be relevant for the
determination of whether the subsidised or unfairly priced
air services provided by non-Community air carriers have
caused injury or are threatening to cause injury; in order
to demonstrate that the pricing practices related to the
to the
services
supply of
Community industry, attention should be given to the
effect of other factors, and consideration should be given
to all relevant and known factors and economic indicators
which have a bearing on the state of the industry, and in
particular prevailing market conditions in the Community.

such air

injury

cause

(12) It is essential to define the terms ‘Community air carrier’,

‘Community industry’, and ‘like air service’.

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(13) It is necessary to specify who may lodge a complaint and
the information that such a complaint should contain; a
complaint should be rejected where there is insufficient
evidence of injury to proceed.

(21) It is necessary to specify procedures for the acceptance of
undertakings eliminating or offsetting the countervailable
subsidies or unfair pricing practices and the injury caused
the imposition of provisional or definitive
in lieu of
it is also appropriate to lay down the conse-
measures;
quences of breach or withdrawal of undertakings.

(14) It is desirable to lay down the procedure to be followed in
the investigation of unfair practices by non-Community
carriers; this procedure should be limited in time.

require;

interested parties

(15) It is necessary to lay down the manner in which interested
parties should be given notice of the information which
should have
the authorities
ample opportunity to present all relevant evidence and
to defend their interests;
it is also necessary to set out
the rules and procedures to be followed during the inves-
tigation, in particular the rules whereby interested parties
are to make themselves known, present their views and
submit information within specified time limits,
if such
views and information are to be taken into account;
whilst
is
it
to all
necessary
information pertaining to the investigation which is
relevant to the presentation of their case; it is necessary
to provide that, where parties do not cooperate satisfac-
torily, other information may be used to establish findings
and that such information may be less favourable to the
parties than if they had cooperated.

commercial
to allow interested parties

confidentiality,
access

respecting

(16) It is necessary to lay down the conditions under which
provisional measures may be imposed; such measures may
in all cases be imposed by the Commission only for a
six-month period.

there is no need to impose measures,

(17) An investigation or proceeding should be terminated
for
whenever
the amount of subsidisation, the degree of
example if
unfair pricing or the injury is negligible; a proceeding
should not be terminated unless the termination decision
is accompanied by a statement of the reasons therefor;
those measures should be less than the amount of counter-
vailable subsidies or the degree of unfair pricing, if such
lesser amount would remove the injury.

(22) It

is necessary to provide for review of

the measures
imposed in cases where sufficient evidence is submitted
of changed circumstances.

(23) The measures necessary for the implementation of this
adopted in accordance with
Regulation should be
Council Decision 1999/468/EC of 28 June 1999 laying
down the procedures for the exercise of implementing
powers conferred on the Commission (1).

(24) The form and level of measures and their enforcement
in a Regulation imposing

in detail

should be set out
these measures.

involves

(25) It is necessary to ensure that any measures taken by virtue
of
this Regulation are in full accordance with the
Community interest; the assessment of the Community
the identification of any compelling
interest
reasons which would lead to the clear conclusion that
the taking of measures would not be in the overall
interest of
the Community. Such compelling reasons
could, for example, include cases where the disadvantage
to consumers or other interested parties would be clearly
disproportionate
the
to
Community industry by the imposition of measures.

advantages

given

any

to

(26) Since

the objective of

this Regulation, namely the
protection against
subsidisation and unfair pricing
practices causing injury to the Community air carriers in
the supply of air services from countries not members of
the European Community may well not be sufficiently
achieved by the Member States and can therefore be
better achieved at Community level,
the Community
may adopt measures, in accordance with the principle of
In
subsidiarity as set out
accordance with the principle of proportionality, as set
out in that Article, this Regulation does not go beyond
what is necessary in order to achieve that objective,

in Article 5 of

the Treaty.

(18) It is necessary to provide that the level of measures should
not exceed the value of subsidies or the non-commercial
advantages granted as the case may be or the sum corre-
sponding to the injury caused, where this is lower.

HAVE ADOPTED THIS REGULATION:

(19) It is necessary to provide that measures should remain in
force only for as long as it is necessary to counteract the
subsidies or unfair pricing practices causing injury.

(20) Preference should be given to duties when it comes to the
imposition of measures; where duties prove not to be
appropriate, other measures may be considered.

Article 1

Objective

1.
This Regulation lays down the procedure to be followed
to provide protection against subsidisation and unfair pricing
practices in the supply of air services from countries not
members of
the European Community insofar as injury is
thereby caused to the Community industry.

(1) OJ L 184, 17.7.1999, p. 23.

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This Regulation shall not preclude the prior application
2.
of any special provisions in air services agreements between
Member States and countries not members of the European
Community.

3.
This Regulation shall not preclude the application of any
special provisions in agreements between the Community and
countries not members of the European Community.

not a member of the European Community, that is to
say, where:

(i) a practice of a government or regional body or other
public organisation involves a direct transfer of funds
such as grants, loans or equity infusion, potential direct
transfer of funds to the company or the assumption of
liabilities of the company such as loan guarantees;

Article 2

Principles

A redressive measure may be imposed for the purpose of
offsetting:

1. a

subsidy

granted,

directly

or

indirectly,

to

a

non-Community air carrier, or

2. unfair pricing practices by non-Community air carriers

concerning the supply of air services on one or more routes to
injury to the
and from the Community which cause
Community industry.

Article 3

Definitions

For the purposes of this Regulation:

(a) the

term ‘injury’

shall mean material

injury to the
Community industry, or threat of material
injury to the
Community industry, determined in accordance with
Article 6;

(b) the term ‘Community industry’ shall mean the Community
air carriers supplying like air services as a whole or those
constitutes a major
of
proportion of
those
services;

share
the total Community supply of

them whose

collective

(c) the term ‘Community air carrier’ shall mean an air carrier
with a valid operating licence granted by a Member State in
accordance with Council Regulation (EEC) No 2407/92 of
23 July 1992 on licensing of air carriers (1);

(d) the term ‘like air service’ shall mean air services which are
supplied on the same route or routes as the air services
under consideration or such air services that are supplied
on a route or routes closely resembling the route or routes
on which the air service under consideration is supplied.

Article 4

Subsidisation

1.

A subsidy shall be deemed to exist if:

(a) there is a financial contribution by a government or
regional body or other public organisation of a country

(1) OJ L 240, 24.8.1992, p. 1.

(ii) revenue of a government or regional body or other
public organisation that is otherwise due is foregone
or not collected;

(iii) a government or regional body or other public organi-
sation provides goods or services other than general
infrastructure, or purchases goods or services;

(iv) a government or regional body or other public organi-
sation makes payments to a funding mechanism or
entrusts or directs a private body to carry out one or
more of the type of functions illustrated under (i), (ii)
and (iii) which would normally be vested in the
in no real sense differs
government and, in practice,
from practices normally followed by governments;

(b) and a benefit is thereby conferred.

2.
Subsidies shall be subject to redressive measures only if
the subsidies are limited, in law or in fact, to an enterprise or
industry or group of enterprises or industries within the juris-
diction of the granting authority.

Article 5

Unfair pricing practices

Unfair pricing practices shall be deemed to exist on a
from the Community where

service to or

1.
particular air
non-Community air carriers:

— benefit from a non-commercial advantage; and

— charge air fares which are sufficiently below those offered
by competing Community air carriers to cause injury.

These practices must be clearly distinguishable from normal
competitive pricing practices.

2. When comparing airfares, account shall be taken of the
following elements:

(a) the actual price at which tickets are offered for sale;

(b) the number of seats proposed at an allegedly unfair price
out of the total number of seats available on the aircraft;

(c)

the restrictions and conditions attached to the tickets sold
at an allegedly unfair price;

(d) the level of service proposed by all carriers providing the

like air service in question;

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(e) the actual costs of the non-Community carrier providing
the services, plus a reasonable margin of profit; and

(f)

the situation, in terms of points (a) to (e), on comparable
routes.

Acting in accordance with the procedure referred to in
3.
Article 15(3),
the Commission shall develop a detailed
methodology for determining the existence of unfair pricing
practices. This methodology shall
the
manner in which normal competitive pricing, actual costs
and reasonable profit margins shall be assessed in the specific
context of the aviation sector.

cover,

inter

alia,

Article 6

Determination of injury

The determination of injury shall be based on positive
1.
evidence and shall involve an objective examination of both:

(a) the level of fares of the air services under consideration and
services on fares offered by

such air

the effect of
Community air carriers; and

(b) the impact of

those air

services on the Community
industry, as indicated by trends in a number of economic
indicators such as number of flights, utilisation of capacity,
passenger bookings, market share, profits, return on capital,
investment, employment.

No one or more of these factors can necessarily give decisive
guidance.

2.
It shall be demonstrated, from all the positive evidence
presented in relation to paragraph 1, that the air services under
consideration are causing injury within the meaning of this
Regulation.

than the

Known factors other

3.
services under
consideration, which are injuring the Community industry at
the same time shall also be examined to ensure that the injury
caused by these other factors is not attributable to the air
services under consideration.

air

4.
A determination of threat of injury shall be based on facts
and not merely on allegation, conjecture or remote possibility.
The change in circumstance, which would create a situation in
which the subsidy would cause injury, must be clearly fore-
seeable and imminent.

Article 7

Initiation of proceedings

1.
An investigation under this Regulation shall be initiated
upon the lodging of a written complaint on behalf of the
Community industry by any natural or legal person or any
association, or on the Commission's own initiative, if there is
sufficient evidence of the existence of countervailable subsidies
(including,
their amount) or unfair pricing
practices within the meaning of this Regulation, injury and a
causal link between the allegedly subsidised or unfairly priced
air services and the alleged injury.

if possible, of

a proceeding,

the Commission shall,

2. When it is apparent that there is sufficient evidence to
initiate
acting in
accordance with the procedure referred to in Article 15(2),
initiate the proceeding within 45 days of the lodging of the
complaint and shall publish a notice in the Official Journal of the
European Union. Where the issue in question is being discussed
within the framework of a bilateral agreement by the Member
State concerned, this 45 day deadline shall, at the request of
the Member State, be extended for up to 30 days. Any
additional extension to the deadline shall be decided upon by
the Commission acting in accordance with the procedure
referred to in Article 15(2).

evidence

insufficient

the
Where
Commission shall, acting in accordance with the procedure
referred to in Article 15(2),
inform the complainant within
45 days of the date on which the complaint was lodged.

presented,

been

has

the air services on the routes concerned,

The notice of initiation of the proceedings shall announce
3.
indicate the scope of the
the initiation of an investigation,
investigation,
the
countries whose governments allegedly granted the subsidies
or license the air carriers allegedly engaged in unfair pricing
practices and the period within which interested parties may
make themselves known, present their views in writing and
submit
such views are to be taken into
account during the investigation; the notice shall also state
the period within which interested parties may apply to be
heard by the Commission.

information,

if

4.
The Commission shall inform the air carriers supplying
the air services under consideration, the government concerned
and the complainants of the initiation of the proceedings.

5.
The Commission may, at any time invite the third-
country government concerned to take part in consultations
with the aim of clarifying the situation as to the matters
referred to in paragraph 2 and arriving at a mutually agreed
solution. Where appropriate the Commission shall associate
with these consultations any Member State concerned.
In
cases where consultations are already underway between a
Member State and the third country government concerned,
the Commission shall
liaise with the said Member State in
advance.

Article 8

The investigation

of

the

the

initiation

Following

proceedings,

1.
the
Commission shall commence an investigation which shall
cover both subsidisation or unfair pricing practices of air
services
supplied by non-Community carriers on certain
routes, and injury. This investigation shall be carried out
expeditiously and shall normally be concluded within nine
months of the initiation of the proceedings, except
in the
following circumstances, where it may be prolonged:

— negotiations with the third country government concerned
have progressed to a point that a satisfactory resolution of
the complaint appears imminent; or

— additional time is needed in order to achieve a resolution

which is in the Community interest.

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The interested parties which have made themselves
2.
known in accordance with the time limits set forth in the
notice of
they have made a
request
they are an interested
party likely to be affected by the result of the proceeding
and that there are particular reasons why they should be heard.

initiation, shall be heard if

for a hearing showing that

3.
In cases in which an interested party refuses access to, or
otherwise does not provide, necessary information within the
appropriate time limits, or significantly impedes the investi-
gation, provisional or final findings, affirmative or negative,
may be made on the basis of
is
found that the interested party has supplied false or misleading
information, the information shall be disregarded and use may
be made of the facts available.

facts available. Where it

Article 9

Redressive measures

Redressive measures, whether provisional or definitive, shall
preferably take
imposed upon the
form of duties
non-Community carrier concerned.

the

Article 10

Provisional measures

determination

Provisional measures may be imposed if a provisional
1.
affirmative
the
has
non-Community carriers concerned benefit from subsidies or
are engaged in unfair pricing practices causing injury to the
Community industry and that the Community interest calls for
intervention to prevent further such injury.

been made

that

2.
Provisional measures may be taken in accordance with
the procedure referred to in Article 15(2). Those measures shall
be imposed for a maximum of six months.

Article 11

Termination without measures

1. Where the complaint is withdrawn, or where a satis-
factory remedy has been obtained under a Member State's air
service agreement with the third country concerned,
the
proceeding may be terminated by the Commission unless
such termination would not be in the Community interest.

redressive measures

2. Where
the
terminated in accordance with the
proceeding shall be
procedure referred to in Article 15(2). Any decision to
terminate a proceeding shall be accompanied by a statement
of the reasons therefor.

unnecessary,

are

Article 12

Definitive measures

1. Where the facts as finally established show the existence
of subsidies or unfair pricing practices and the injury caused
thereby, and the Community interest calls for intervention in
accordance with Article 16, a definitive measure shall be
imposed in accordance with the procedure referred to in
Article 15(3).

The level of measures imposed to offset subsidies shall
2.
not exceed the amount of subsidies, calculated in terms of
benefit conferred on the recipient enterprise, from which the
non-Community carriers have been found to benefit, and
if such
should be less than the total amount of subsidies,
lesser level were to be adequate to remove the injury to the
Community industry.

The level of measures imposed to offset unfair pricing
3.
practices benefiting from a non-commercial advantage, shall
not exceed the difference between the fares charged by the
non-Community air carrier
fares
offered by the competing Community air carrier concerned,
but should be less if such lesser level were to be adequate to
remove the injury to the Community industry. In any event,
the level of measures should not exceed the value of
the
non-commercial advantage granted to the non-Community
air carrier.

concerned and the air

4.
A measure shall be imposed in the appropriate amounts
in each case, on a non-discriminatory basis, on air services
supplied by all non-Community air carriers found to benefit
from subsidies or engaged in unfair pricing practices on the
respective routes, except
for air services supplied by those
non-Community air carriers for which undertakings under
the terms of this Regulation have been accepted.

5.
A measure shall remain in force only as long as, and to
the extent that, it is necessary to offset the subsidies or unfair
pricing practices which are causing injury.

Article 13

Undertakings

Investigations may be terminated without the imposition
1.
of provisional or definitive measures upon receipt of satis-
factory voluntary undertakings under which:

(a) the government granting the subsidy or non-commercial
the subsidy or
other measures

advantage agrees to eliminate or limit
non-commercial
concerning its effects; or

advantage

take

or

(b) any non-Community air carrier undertakes to revise its
prices or to cease the supply of air services to the route
in question so that the injurious effect of the subsidy or
non-commercial advantage is eliminated.

Undertakings shall be accepted in accordance with the

2.
procedure referred to in Article 15(2).

In case of breach or withdrawal of undertakings by any
3.
party, a definitive measure shall be imposed in accordance with
Article 12, on the basis of the facts established within the
context of
the investigation which led to the undertaking,
provided that the investigation was concluded with a final
determination as to subsidisation and that the non-Community
air carrier concerned, or the government granting the subsidy,
has been given an opportunity to comment, except in the case
of withdrawal of the undertaking by the non-Community air
carrier or such government.

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Article 14

Reviews

so warrant,

the need for

1. Where circumstances
the
continued imposition of measures in their initial form may
be reviewed, on the initiative of the Commission or upon
the request of a Member State or, upon a request by
non-Community air
to measures or by
Community air carriers provided that at least two consecutive
IATA scheduling seasons have elapsed since the imposition of
the definitive measure.

carriers

subject

2.
Reviews under paragraph 1 shall be initiated by the
Commission acting in accordance with the procedure referred
to in Article 15(2). The relevant provisions of Articles 7 and 8
shall apply to the reviews under paragraph 1. Reviews shall
assess the continued existence of subsidies or unfair pricing,
and/or injury caused thereby,
together with a new deter-
the Community interest calls for
mination as to whether
continued intervention. Where warranted by reviews,
the
measures shall be repealed, amended or maintained, as appro-
priate in accordance with the procedure referred to in Article
15(3).

Article 15

Committee procedure

The Commission shall be assisted by the Committee
1.
instituted by Article 11 of Council Regulation (EEC) No
2408/92 of 23 July 1992 on access for Community air
carriers to intra-Community air routes (1).

2. Where reference is made to this paragraph, Articles 3 and
7 of Decision 1999/468/EC shall apply, having regard to the
provisions of Article 8 thereof.

3. Where reference is made to this paragraph, Articles 5 and
7 of Decision 1999/468/EC shall apply, having regard to the
provisions of Article 8 thereof.

The period laid down in Article 5(6) of Decision 1999/468/EC
shall be set at three months.

4.

The Committee shall adopt its Rules of Procedure.

Article 16

Community interest

the Community interest calls for

A determination under Articles 10(1), 11(2) and 12(1) as to
whether
intervention or
whether measures should be maintained in accordance with
Article 14(2) shall be based on an appraisal of all the various
interests taken as a whole. Measures may not be applied where
it can be clearly concluded that this is not in the Community
interest.

Article 17

General provisions

1.
Provisional or definitive redressive measures shall be
imposed by Regulation, and enforced by Member States in
the form, at the level specified and according to the other
criteria laid down in the Regulation imposing such measures.
If measures other than duties are imposed, the Regulation shall
define the precise form of the measures in accordance with the
provisions of this Regulation.

2.
Regulations imposing provisional or definitive redressive
measures, and Regulations or Decisions accepting undertakings
or suspending or terminating investigations or proceedings,
shall be published in the Official Journal of the European Union.

Article 18

Entry into force

This Regulation shall enter into force on the twentieth day of
its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at . . .

For the European Parliament

The President

For the Council

The President

(1) OJ L 240, 24.8.1992, p. 8. Regulation as last amended by European
Parliament and Council Regulation (EC) No 1882/2003 (OJ L 284,
31.10.2003, p. 1).

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STATEMENT OF THE COUNCIL'S REASONS

I. INTRODUCTION

1. On 12 March 2002 the Commission adopted a proposal for a Regulation concerning protection
against subsidisation and unfair pricing practices in the supply of airline services from countries not
members of the European Community.

2. The European Parliament adopted its opinion at first reading on 14 January 2003, whilst the
Economic and Social Committee's opinion was adopted on 18 September 2002. The Committee
of the Regions informed the Council that it did not intend to deliver an opinion on this file.

3. On 18 December 2003 the Council adopted its common position in accordance with Article 251 of

the Treaty.

II. OBJECTIVE

The Commission proposal should be seen in the context of the difficulties facing the international
aviation sector in recent times following 11 September 2001 terrorist attacks and the global economic
slow-down. In the Commission's view the reactions of certain third country governments in granting
financial aid to companies in the sector, together with ‘hidden’ subsidies provided to state-controlled
carriers, have contributed to a situation whereby Community carriers may no longer be able to
compete internationally on a level-playing field. As a reaction to this situation, the Commission
decided to make this proposal, based on an approach taken in 1986 in the maritime sector (1) and
widely used in trade in goods, to allow for specific measures to be taken against third country carriers
on a per carrier basis.

III. ANALYSIS OF THE COMMON POSITION

1. Key changes

Whilst accepting the basic rationale behind the Commission's proposal, the Council made a number of
important changes to the substance of the text, as well as a number of smaller drafting improvements.

Τhe most significant changes incorporated into the common position are the following:

— The relationship between this Regulation and Member States' bilateral air service agreements has
been clarified (see Articles 1(2) and 7(2) and Recital 5). The principle of giving priority to Member
State agreements has been taken over from paragraph 6 of the explanatory Memorandum accom-
panying the Commission's proposal.

— The scope of Article 5 (formerly Article 3 of the Commission proposal) regarding unfair pricing
practices has been extended to cover all non-Community carriers and not only those that are
state-controlled as proposed by the Commission. The Council considers that the limitation to
state-controlled carriers was discriminatory and ignored the reality that privately-controlled
operators could engage in unfair practices. As a counter-balance to ensure that such a provision
would be used only in a limited way, text inspired by Parliament's amendments 11 and 34 was
included in the recitals and the substantive articles.

— The Council, sharing the Parliament's unease with the notion of ‘normal fare rates’ in Article 5, and
also concerned by the methodology proposed by the Commission to arrive at such rates, followed
the Parliament (amendment 34) in preferring the term ‘normal competitive pricing’ and in inserting
a list of criteria to be used when comparing airfares. In addition, the common position deletes the
methodology in the proposal and instead requires the Commission, assisted by a Regulatory
Committee, to develop a more detailed methodology for determining the existence of unfair pricing.

(1) See Council Regulation (EEC) No 4057/86 (OJ L 378, 31.12.1986, p. 14).

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— The common position takes up the Parliament's suggestion (amendments 4 and 27) that redressive

measures should preferably take the form of duties.

— For the imposition of definitive measures and the review of such measures, the Council amended
the applicable comitology procedure from advisory to regulatory. In this regard, it should be noted
that all previous analogous Community instruments do not even grant a power to the Commission
to take measures, requiring instead a Council decision.

2. Consideration of the European Parliament's first reading opinion

As explained above, on many of
Commission's proposal
Council has also sought to take on board many of the first reading Parliamentary amendments.

the points where the Council has significantly modified the
it followed closely the Parliament's opinion. On more detailed points, the

in part or in principle, are the following:
in full,
The amendments accepted by the Council
Amendments 1, 2, 3, 4, 5, 10 (in part), 11 (in part), 12, 13, 14, 15, 16, 17, 20, 21, 23, 24, 25,
27, 28, 29, 30, 31, 34, 44, 49, 54 (in part), 60, 61 and 62.