Communication from the Commission - A Community aviation policy towards its neighbours
Date: 2004-02-09
Institutions: European Commission
Subjects: EU policy, Mediterranean third countries, air transport, cooperation agreement (EU), cooperation policy, enlargement of the Union, third country

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 09.02.2004 
COM(2004) 74 final 

COMMUNICATION FROM THE COMMISSION 

A Community aviation policy towards its neighbours 

EN 

   EN 

 
 
 
  
1. 

1. 

2. 

3. 

4. 

INTRODUCTION 

In  its  Communication  “Wider  Europe  -  Neighbourhood:  A  new  framework  for 
Relations with our Eastern and Southern Neighbours”1, the Commission argued that 
"enhanced  interdependence  -both  political  and  economic-  can  itself  be  a  means  to 
promote stability, security and sustainable development both within and outside the 
EU.  (…)  the  EU  should  aim  to  develop  a  zone  of  prosperity  and  a  friendly 
neighbourhood  (…)  with  whom  the  EU  enjoys  close,  peaceful  and  co-operative 
relations". 

It  is  obvious  that  transport  in  general,  and  aviation  in  particular  is  a  key  factor  in 
promoting  productive  co-operation  between  countries.  The  establishment  of  an 
aviation  policy  towards  all  of  the  neighbours  of  the  Community  should  thus  be 
considered to be an important policy objective.  

Given the diversity of the countries neighbouring the enlarged Community, it would 
however  not  be  wise  to  impose  a  “one  negotiating  model  fits  all”-approach,  nor 
would it be efficient to seek comprehensive agreements with everybody at the same 
flexible  coherence: 
time.  The  current  Communication 
negotiations,  on  the  basis  of  a  Single  Aviation  Market-model,  with  all  of  the 
countries  with  which  the  Community  is  already  involved  in  pan-European  aviation 
co-operation,  as  well  as  negotiations,  on  the  basis  of  Euro-Mediterranean  Aviation 
Agreements, with the Mediterranean Partners involved in the Barcelona Process, for 
which Morocco, Lebanon and Jordan would be the starting point. The final chapter 
of this Communication succinctly lists the operational proposals stemming from the 
advocated approach. 

therefore  advocates 

This Communication builds on recent developments with regard to the Community’s 
role in external aviation. These developments are a catalyst for the establishment of 
fully-fledged  aviation  relations  with  the  enlarged  Community’s  neighbouring 
countries.  Indeed,  in  parallel  with the  aviation negotiations with the US, as well as 
with negotiations with a view to bringing Member States’ current bilateral aviation 
agreements  in  line  with  the  EC  Treaty,  the  Commission  intends  to  negotiate 
comprehensive  Community  aviation  agreements  with  its  major  partners.  In  this 
respect  this  Communication  is  a  first  step:  further  steps  will  follow,  including  also 
proposals for negotiating mandates with countries in the Far-East and South Pacific 
area (Australia, New Zealand, Singapore, Japan, China). 

2. 

TOWARDS  AVIATION  NEGOTIATIONS  WITH  ALL  OF  THE  NEIGHBOURS  OF  THE 
ENLARGED COMMUNITY 

2.1. 

Recent developments and the need for a coherent answer 

1 

COM(2003) 104 of 11 March 2003. 

2 

 
 
  
 
                                                 
5. 

6. 

7. 

8. 

9. 

2 

3 

4 
5 

Following  the  Court  of  Justice  judgements2  recognising  exclusive  Community 
competences with regard to important aspects of external aviation, the Commission 
indicated that it intended to submit proposals for further mandates to allow it to enter 
into negotiations covering a broad range of air transport issues with selected non-EU 
countries. 

For the Commission, for political as well as for economic reasons, it is evident that 
as  a  priority,  the  Community  should  define  a  coherent  aviation  policy  towards  the 
countries neighbouring the enlarged Community. 

Politically, this area contains future members and/or participants in the Stabilisation 
and Association Process, partners in pan-European aviation co-operation, as well as 
Mediterranean Partners involved in the Barcelona Process and having signed with the 
Community  a  Euro-Mediterranean  Association  Agreement3.  These  countries  are 
involved  in  close  co-operation  with  the  EU  through  bilateral  agreements  and,  for 
some  of  them,  through  their  involvement  in  the  European  aviation  organisations. 
Furthermore,  the  EU  hosts  large  groups  of  immigrants  originating  from  these 
countries,  justifying  more  efficient  and  competitive  aviation-networks  in  stringent 
safety and security conditions. 

Economically,  most  of  the  countries  neighbouring  the  enlarged  Community  are 
important trading partners for the Community. The Community is the most important 
trading  partner  for  all  of  them,  as  well  as the main focus of their economic policy. 
Given  the  fact  that  the  impact  of  air  transport  on  the  overall  economy  has  never 
ceased to increase (the total economic impact of air transport on gross world output 
is  thought  to  amount  to  at  least  €  850  billion4),  it  can  safely  be  assumed  that  also 
between  the  enlarged  Community  and  its  neighbours  better  aviation  relations  will 
contribute to reciprocal economic growth, notably through such sectors as tourism or 
trade in goods and services. 

However,  it  is  clear  that  economic  growth  based  on  aviation  is  consistent  with 
sustainable development only on certain conditions. In this context the Commission 
has already raised concerns about the practice of exempting aircraft fuel from taxes 
through  bilateral  air  service  agreements.  The  recent  Council  decision5  to  lift  the 
mandatory  tax  exemption  for  flights  within  the  Community  has  enhanced  the 
relevance of putting an end to it, as otherwise Community carriers operating within 
Member States that decide to make use of the options offered by the new Directive 

Judgements of the Court of Justice of November 5th 2002, ("Open skies") Nrs. C-466/98 Commission 
vs.  United  Kingdom,  C-467/98  Commission  vs.  Denmark,  C-468/98  Commission  vs.  Sweden,  C-
469/98  Commission  vs.  Finland,  C-471/98  Commission  vs.  Belgium,  C-472/98  Commission  vs. 
Luxembourg,  C-475/98  Commission  vs.  Austria,  C-476/98  Commission  vs.  Germany.  See  also  the 
Communication from the Commission “on the consequences of the Court judgements of 5 November 
2002”  (COM(2002)649 of 19  November 2002),  as  well as  the  Communication  from  the  Commission 
“on relations between the Community and third countries in the field of air transport” (COM(2003)94 
of 26 February 2003. 
Apart from Malta and Cyprus, the Barcelona Process encompasses Morocco, Algeria, Tunisia, Egypt, 
the Palestine Authority, Israel, Jordan, Lebanon, Syria and Turkey. Since its participation in the April 
1999 Stuttgart conference as a special guest of the EU Presidency, Libya takes part as an observer in 
some of the meetings of the Barcelona Process. 
Air Transport Action Group (ATAG) - Facts and Figures. 
Council  Directive  2003/96/EC  of  27  October  2003  restructuring  the  Community  framework  for  the 
taxation of energy products and electricity. 

3 

 
 
  
 
                                                 
10. 

11. 

12. 

would  face  a  risk  of  unfair  competition  from  third  country  carriers  enjoying 
exemptions under air transport agreements. 

It should also be noted that the Commission has in the past years met with a growing 
interest  from  neighbouring  countries  that  have  so  far  not  been  involved  in  any  air 
transport  negotiations  with  the  EU  to  establish  closer  aviation  relations.  It  seems 
logical that following the June 2003 adoption of the external-relations package, such 
interest will grow, both in intensity and in scope.  

Moreover,  and  in  accordance  with  the  “horizontal”  mandate  of  the  Commission  to 
negotiate  the  adaptation  of  the  Member  States’  bilateral  agreements  to  the  Treaty 
following  the  November  5th  2002  Court  of  Justice  judgements,  contacts  have  been 
made with the neighbouring countries involved: most have indicated their interest to 
find an alternative response to this legal problem via a Community agreement. 

Therefore, in parallel with the negotiations to bring the existing bilateral agreements 
in  line  with  the  Treaty,  the  Commission  thinks  it  necessary  to  allow  for  a  more 
comprehensive  approach,  through  the  Community  negotiating  a  series  of  aviation 
agreements with those countries that are ready for such negotiations. 

2.2. 

Geographical scope 

13. 

14. 

15. 

16. 

17. 

The envisaged partners for such an approach are first of all those countries that are 
engaged in a pan-European co-operation with regard to aviation, and which share the 
same rules with regard to such fundamental aspects of aviation as safety, security or 
Air  Traffic  Management,  through  participation  in  the  European  Common  Aviation 
Organisation  (ECAC),  the  Joint  Aviation  Authorities  (JAA)  or  Eurocontrol.  In 
addition there are the Community's southern and south-eastern neighbours of which 
most take part in the Barcelona Process.  

The  potential  partners  for  the  external  aviation  policy  which  is  advocated  in  this 
Communication thus are: Morocco, Algeria, Tunisia, Egypt, the Palestine Authority, 
Israel,  Jordan,  Lebanon,  Syria,  Turkey,  Bulgaria,  Romania,  Albania,  Bosnia-
Herzegovina,  Croatia,  the  former  Yugoslav  Republic  of  Macedonia,  Serbia  and 
Montenegro,  the  United  Nations  Interim  Administration  Mission  in  Kosovo 
(UNMIK)6, Moldova, Ukraine and Belarus.  

It  is  evident  however  that  first  and  foremost  all  of  these  countries  will  need  to 
demonstrate that they meet Community requirements in the security and safety fields 
if  an  aviation  agreement  with  the  Community  is  to  be  concluded,  a  necessary 
condition which for the moment is not yet met by all of them. 

As  Libya  is  not  yet  a  Partner  in  the  Barcelona  Process,  it  is  deemed  too  early  to 
usefully conceive a formal Community-Libya aviation framework. 

As  for  Ukraine  and  Moldova,  the  Commission  will  monitor  closely  legislative, 
economic  and  industrial  developments  in  the  aviation  field,  in  the  context  of  their 
gradual  integration  into  pan-European  aviation  structures,  with  a  view  to  making 
concrete  proposals  at  the  appropriate  time.  In  this  respect,  the  appropriate 

6 

Pursuant to UN Security Council Resolution 1244 of 10 June 1999. 

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Subcommittees  under  the  respective  Partnership  and  Cooperation  Agreements  with 
Ukraine and Moldova would be the logical fora to formalise such monitoring. 

18. 

With regard to Belarus, the current political situation does not allow to include it in 
the present exercise.  

3. 

COUNTRIES FOR WHICH A "SINGLE AVIATION MARKET"-MODEL REMAINS VALID 

3.1. 

Experiences drawn from negotiations on an ECAA 

19. 

20. 

21. 

On  October  3rd,  1996,  the  Council  authorised  the  Commission  to  enter  into 
negotiations  with  a  view  to  conclude  one  or  more  agreements  on  access  to  the  air 
transport markets, between the European Community and the Republic of Bulgaria, 
the  Republic  of  Estonia,  the  Republic  of  Hungary,  the  Republic  of  Latvia,  the 
Republic  of  Lithuania,  the  Republic  of  Poland,  Romania,  the  Slovak  Republic,  the 
Republic  of  Slovenia  and  the  Czech  Republic.  This  mandate  was  subsequently 
enlarged  to  encompass  the  Republic  of  Cyprus.  The  Kingdom  of  Norway  and  the 
Republic  of  Iceland  equally  expressed  their  desire  to  be  fully  involved  in  the 
negotiations, which aimed at creating what became known as the European Common 
Aviation Area (ECAA). 

On  the  basis  of  this  mandate  a  draft  Agreement  was  reached  in  2000.  Given  the 
institutional aspects this Agreement included, the Commission  lodged a request for 
an Opinion of the Court of Justice, pursuant to Article 300(6) of the EC Treaty, in 
October 2000. The ECJ rendered its opinion on April 18th, 20027. However, by that 
time  the  process  of  enlargement  had  progressed  to  an  extent  which  rendered  the 
Commission's mandate obsolete with regard to the 10 countries that have signed the 
Athens accession treaty. 

Nevertheless,  the  "Single  Aviation  Market"-model  which  is  the  essence  of  a 
European  Common  Aviation  Area  remains  a  valid  option  for  handling  aviation 
relations  with  a  number  of  countries.  Indeed,  the  creation  of  a  Common  Aviation 
Area  which  could  eventually  encompass,  in  addition  to  the  enlarged  Community, 
Norway, Iceland and Switzerland, also Bulgaria, Romania, and the Western Balkan 
countries  (Albania,  Bosnia-Herzegovina,  Croatia,  the  former  Yugoslav  Republic  of 
Macedonia,  Serbia  and  Montenegro  and  the  United  Nations  Interim  Administration 
Mission in Kosovo (UNMIK)8), would considerably increase the critical mass of the 
Community’s  aviation  market,  add  to  the  Community’s  aviation  weight  in  political 
and economical terms, and create more operational certainty, including in relation to 
such  sensitive  sectors  as  safety  (membership  of  JAA  is  a  prerequisite  for  ECAA 
membership) and security. 

3.2. 

Bulgaria and Romania 

22. 

The  Commission  intends  to  continue  the  negotiation  process  with  Bulgaria  and 
Romania in order to implement the ECAA-mandate, taking into account the planned 

7 

8 

Opinion 1/00 of the European Court of Justice of 18.04.2002. In its Opinion, the Court of Justice stated 
in essence that the system of legal supervision proposed by the Agreement was indeed compatible with 
the EC Treaty. 
Pursuant to UN Security Council Resolution 1244 of 10 June 1999. 

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date for their accession. Indeed, the Commission remains convinced that the speedy 
integration  of  these  countries  into  a  liberalised  single  aviation  market  will  benefit 
their citizens and economies. 

3.3. 

The Western Balkan countries  

23. 

24. 

25. 

26. 

The Stabilisation and Association Process (SAP), the EU’s policy for relations with 
the Western Balkans, aims to help the participant countries to progress towards the 
requirements  of  EU  membership.  The  Commission’s  Communication  “Western 
Balkans  and  European  Integration”9  suggests  ways  and  means  for  intensifying  this 
SA  process  on  the  basis  of  the  experience  from  the  current  enlargement  process, 
while  its  Communication  “Preparing  for  the  participation  of  the  Western  Balkan 
countries  in  Community  programmes  and  agencies”10  outlines  identifies  some 
practical  tools  for  such  intensification.  The  Community  is  also,  by  and  large,  the 
most  important  trade  partner  of  each  of  the  countries  involved.  Lastly,  the 
geographical  position  of  the  Western  Balkan  countries  makes  it  even  more 
appropriate  to  define  a  fully-fledged  Community  policy  with  regard  to  aviation 
towards these countries.  

Therefore,  the  Commission  envisages  eventual  membership  to  the  European 
Common Aviation Agreement of Albania, Bosnia-Herzegovina, Croatia, the former 
Yugoslav  Republic  of  Macedonia,  Serbia  and  Montenegro  and  the  United  Nations 
Interim Administration Mission in Kosovo (UNMIK)11.  

Eventually,  these  negotiations  could  benefit  from  the  regional  approach  of  the 
Stabilisation and Association Process, given the limited size of the Western Balkan 
countries’ domestic markets. It can indeed be expected that their air links with third 
countries  are  to  depend  largely  on  the  level  of  co-operation  they  establish  with  the 
Community, and the capacities attributed, through this co-operation, to Community 
carriers operating from or in these countries. It can equally be hoped that the declared 
prospect  of  ECAA-negotiations  with  the  countries  on  the  Western  Balkans  can  by 
itself  contribute  to  the  positive  momentum  towards  a  legal,  political  and  aviation 
situation that allows the effective start of such negotiations. 

Nevertheless,  it  is  clear  that  the  countries  concerned  differ  considerably,  not  only 
with regard to macro-factors such as political stability and economical development, 
but also with regard to the development of their aviation sectors. This is important, as 
opting  for  an  ECAA-model  necessitates  in  essence  that  the  country  concerned  is 
capable  of  applying  the  Community’s  aviation  legislation  and  standards.  Through 
intensive  contacts  in  the  immediate  future  with  the  countries  involved,  as  well  as 
through  proper  factual  assessments,  the  order  in  which  these  negotiations  are  to  be 
started and eventually concluded will need to be established. 

27. 

From an aviation point of view, it seems that the Croatian aviation sector has to date 
evolved further than that of any other Western Balkan country. Its aviation market is 
quickly  growing12,  and  should  continue  to  do  so  through  tourism  development.  As 

9 
10 
11 
12 

COM(2003) 285 of 21 May 2003. 
COM(2003) 748 of 3 December 2003. 
Pursuant to UN Security Council Resolution 1244 of 10 June 1999. 
According to OAG 2002 figures, available yearly scheduled seats between the Community and Croatia 
amounted to approx. 1.6 million seats. 

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Croatia  has  developed  into  a  mature  aviation  market,  additional  opportunities  for 
Community carriers exist. Lastly, according to JAA,  Croatia is closest to  Full JAA 
Membership13.  

However,  the  declared  prospect  of  ECAA-negotiations  with  the  other  countries  on 
the  Western  Balkans  can  by  itself  contribute  to  the  positive  momentum  towards  a 
legal,  political  and  aviation  situation  that  allows  the  effective  start  of  such 
negotiations. 

Consequently, the Commission recommends to the Council that its 1996 mandate for 
negotiations  on  a  European  Common  Aviation  Area  be  adapted  to  include  the 
Western Balkan countries. 

28. 

29. 

4. 

MEDITERRANEAN COUNTRIES 

4.1. 

The need for a Community aviation policy towards the Mediterranean 

30. 

31. 

32. 

33. 

34. 

13 

14 

15 

16 

Another group of countries which need to be addressed in a framework for external 
aviation  relations  between  the  enlarged  Community  and  its  neighbours,  are  the 
neighbouring countries involved in the Barcelona Process. 

The Community is by far the most important aviation partner for Tunisia (77,5% of 
all  passenger  traffic  in  2000  had  a  Community  arrival/departure)  and  for  Israel 
(52,2%). Although the countries of the Near and Middle East are collectively more 
important, the Community is still a major aviation partner for Lebanon (31%), Jordan 
(30%) and Syria (22%)14. 

Therefore,  comprehensive  aviation  agreements  with  the  countries  involved  in  the 
Barcelona Process could create reciprocal economic growth. This is most notably the 
case  through  the  positive  effects  such  agreements  can  have  on  the  development  of 
tourism15. 

Additional legal, administrative and economical know-how will need to be compiled 
in  order  to  make  the  assessments  necessary  for  a  move  towards  comprehensive 
aviation  agreements  with  all  of  the  countries  concerned.  Nevertheless,  as  stated 
above,  several  countries  within  the  Euro-Mediterranean  Partnership  have  already 
signalled their readiness to discuss market opening.  

It is the aim of the Commission to arrive at (largely similar) aviation agreements with 
all of its Mediterranean Partners. The experience which will be gained through these 
negotiations  and  the  functioning  of  these  agreements  could  then  lay  the  basis  for  a 
(sub)regional16  approach.  In  the  long  run,  even  the  creation  of  a  common  Euro-
Mediterranean  aviation  area  could  be  considered,  as  already  suggested  in  the 

Croatia  having  become  JAA  Candidate  Member  in  June  2001  is  the  subject  of  a  JAA  Fact  Finding 
Mission in August 2003, the results of which determine its eventual accession as Full Member. 
Source: Eurostat, series Statistics in Brief, Theme 7, 10/2002 "Transport by Air in the MED countries, 
1998-2000". Data available from Eurostat's New Chronos database. 
According to the same source, EU tourists represented in 2000 45% or more of all tourists in Morocco, 
Turkey, Egypt, Israel and Tunisia. The vast majority of them arrived by air. 
It  is  to  be  noted  that  Morocco,  Egypt,  Jordan  and  Tunisia  are  involved  in  the  so-called  “Agadir 
Process”, in order to create a free trade area between them. 

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Commission's  recent  Communication  on  the  development  of  a  Euro-Mediterranean 
Transport Network17. 

4.2. 

Conceiving  the  right  tool  for  such  a  policy:  Euro-Mediterranean  aviation 
agreements  

4.2.1.  The need for a specific instrument 

35. 

36. 

As stated above, via the European Common Aviation Area, the Community intends 
to  create,  by  the  end  of  the  applicable  transitional  periods,  a  fully-fledged  single 
aviation market for all of its signatories. In essence, this single market is created via 
the  extension  of  the  Community  aviation  acquis  to  all  of  the  countries  concerned. 
Such  an  extension  implies  particular  roles  for  Community  Institutions  (such  as  the 
Commission, with regard to competition issues, or the Court of Justice) as well as for 
a  Joint  Committee  (in  particular  with  regard  to  Community  aviation  legislation 
adopted after the ECAA Agreement has entered into force). 

However,  the  differences  in  the  legal,  administrative  and  economical  frameworks 
under which aviation is organised in each of the Mediterranean Partners potentially 
involved,  undeniably  surpass  the  differences  which  are  met  in  the  framework  of 
ECAA.  Secondly,  aviation  negotiations  with  Mediterranean  Partners  will  not  be 
conducted  against  the  background  of  accession  by  a  set  date.  Thirdly,  the 
management  of  a  “single  Euro-Mediterranean  aviation  market”,  with  the  "single-
pillar"-structures  it  entails,  would  create  an  administrative  burden  which  the 
Commission at present is unable to assume properly. Lastly, and maybe most of all, 
it  should  be  noted  that  the  Community  does  not  share,  through  the  pan-European 
aviation  co-operation  mentioned  above,  the  same  rules  in  such  areas  as  safety, 
security or ATM. With regard to these areas, only ICAO provisions are relevant for 
the  Community's  relations  with  the  Mediterranean  Partners,  as  is  the  case  for  all 
other third countries in the world. 

37. 

For  all  of  these  reasons,  to  start  negotiations  towards  aviation  agreements  with 
Mediterranean countries on the basis of an extension of Community aviation law and 
making  use  of  Community  Institutions  is  not  the  best  available  basis  for  such 
negotiations. Here the Commission advocates an approach of more classical aviation 
agreements,  with  a  regional  focus  if  possible,  and  without  excluding  more  far-
fledged co-operation in areas of common interest. 

4.2.2.  The need for flexible coherence 

38. 

In  its  Communication  on  “Wider  Europe”,  cited  in  the  Introduction  to  this 
Communication,  it  was  noted  that  “different  stages  of  reform  and  economic 
development  also  means  that  different  rates  of  progress  can  be  expected  from  the 
neighbouring countries over the coming decade”. With this in mind, the Commission 
is  of  the  opinion  that  the  Community  aviation  policy  towards  its  Mediterranean 
Partners should be characterised by a certain flexibility, in particular with regard to 
transitional periods. 

17 

Communication of the Commission to the Council and to the European Parliament on the development 
of a Euro-Mediterranean Transport Network of 24 June 2003 (COM (2003)376).  

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39. 

The Commission is of the opinion that it would not be desirable if the Community’s 
ambition  would  be  limited  to  the  establishment  of  a  mere  network  of  differing 
Community-third country relations. Only the conclusion with all partners involved of 
eventually  open  aviation  agreements  could  prevent  that  aviation  relations  are 
fragmented.  In  addition,  it  could  also  lead  to  easier  operations  between  different 
Mediterranean Partners, and thus enhance the chances for (sub)regional integration. 
Therefore, negotiations with different countries should lead to a certain coherence. 

4.2.3.  The need for “Euro-Mediterranean Aviation Agreements” – Basic Features  

40. 

41. 

42. 

43. 

44. 

its  Mediterranean  aviation  policy 

The Commission is of the opinion that a new type of agreement will need to form the 
basis  of 
:  Euro-Mediterranean  Aviation 
Agreements.  These  Agreements  are  based  on  the  traditional  approach  of  Open 
Aviation Agreements (OAA), covering a range of issues which aim essentially at a 
reciprocal  opening  up  of  markets  and  removal  of  economic  barriers  to  trade  and 
investment. According to this approach, each party will be essentially responsible for 
enforcement  on  its  territory  and  with  regard  to  its  nationals.  In  addition,  the 
agreement  would  allow  for  a  degree  of  control  to  guarantee  fulfilment  of  the 
obligations  entered  into,  including  information  on  and  control  of  each  other’s 
systems to avoid distortion of competition. 

Stringent air safety provisions, fully taking into account the procedures and standards 
applicable  on  the  territory  of  the  Community,  as  well  as  ongoing  developments 
within  the  Community  (including  through  the  creation  of  the  European  Air  Safety 
Agency) will need to form an integral part of any agreement. The same applies with 
regard to security. 

In relation to Air Traffic Management, the agreement should make sure that once the 
envisaged  Community  legislation  on  the  creation  of  a  Single  European  Sky  is 
adopted, a maximum drive towards harmonisation and integration is made possible. 

A  particular  chapter  can  be  included  regarding  aviation  development  and/or 
(technical)  assistance,  for  which  reference  could  be  made  to  existing  funds 
(MEDA,…),  as  well  as  the  overall  framework  of  relations  between  the  EU  and 
Mediterranean Partners18. 

Lastly,  the  Commission  proposes  the  inclusion  of  a  "most  favoured  nation-clause", 
limited  to  its  Mediterranean  Partners.  Via  such  a  clause,  the  Community  and  a 
Mediterranean Partner would endeavour to offer the liberalising measures they agree 
between  each  other  to  any  other  Mediterranean  Partner  with  which  a  similar  Euro-
Mediterranean  Aviation  Agreement  already  exists.  If  the  latter  country  wants  to 
accept this offer, it is self-evidently obliged to offer the same to the Community and 
the  former  country.  If  it  refuses  the  offer,  there  will  be  no  reciprocity  and  the 
“extension” dies. This approach would on the one hand respect the difficult bilateral 
relations  that  exist  between  some  Mediterranean  Partners,  while  it  would  create  an 
important dynamic towards more “multilateral aviation openness”. 

18 

See  in  particular  the  chapter  on  “funding”  in  the  Communication  on  the  development  of  a  Euro-
Mediterranean Transport Network. 

9 

 
 
  
 
                                                 
4.2.4.  Negotiations on a Euro-Mediterranean Aviation Agreement with Morocco 

45. 

46. 

Because  of  its  overall  political  and  economical  situation,  the  importance  of  its 
aviation  market,  the  level  of  development  of  its  aviation  sector,  as  well  as  the 
expressed  will  to  enter  into  aviation  negotiations  with  the  Community19,  the 
Commission  is  of  the  opinion  that  among  the  Community's  Maghreb  neighbours, 
Morocco  currently  offers 
the  best  chances  for  fruitful  negotiations  on  a 
comprehensive Aviation Agreement. 

With  more  that  70%  of  its  exports  destined  to,  and  more  than  65%  of  its  imports 
stemming  from  the  Community,  the  Community  is  by  far  Morocco’s  main  trading 
partner20.  With  regard  to  aviation,  Community-Moroccan  aviation  has  seen  a 
consistent  growth  for  the  last  5  years2122  Tourism-driven  traffic  evidently  plays  a 
crucial role in these relations : in 2000 49,8% of all tourists in Morocco came from 
the EU, and these tourists were responsible for more than 80 % of the nights spent by 
non-residents23. By far the most part of these Community tourists arrived by air. In 
addition,  immigration-related  (“visiting  friends  and  relatives”)  traffic  guarantees 
additional flows of traffic24. 

The three main actors in Moroccan aviation 

The Ministry of Infrastructure and Transport 

The Moroccan Ministry of Infrastructure and Transport is responsible for the main aspects of 
aviation in Morocco. It is the licensing, designating and authorising body for air transport, as 
well  as  the  main  responsible  for  legislative  and  regulatory  action  within  aviation,  including 
with regard to Air Traffic management (ATM), security and safety (where it also performs the 
function of Accident Investigator). The Ministry equally represents Moroccan aviation on the 
international level, including with regard to negotiations on Air Service Agreements. 

The National Airport Authority 

The National Airports  Authority  (NAA) is the state-owned agency that manages Morocco’s 
main  airports  (17,  of  which  7  have  an  international  status,  with  three  airports  serving  more 
than  1  million  passengers  per  year),  which  served  over  7  million  passengers  in  2001 
(including some 200.000 transit passengers and 90.000 general aviation passengers)25. 

19 

20 
21 

22 

23 
24 

25 

Statement made by the Ministry of Infrastructure and Transport on the occasion of the 3rd meeting of 
the EU-Morocco Association Committee (Rabat, 21 October 2003). 
Eurostat and IMF 2000 figures. 
According to Eurostat figures, the number of available yearly seats, scheduled and non-scheduled, has 
crossed for the first time the 4 million threshold in 2000.  
Of  the  nearly  7  million  air  passengers  arriving  or  departing  in  Morocco  in  2001  (transit  and  general 
aviation  not  included),  some  1,7  million  were  passengers  on  internal  flights,  the  remaining  5  million 
international. 80 % of the latter originated from the EU-25, of which half originated from France (data 
from the Moroccan Ministry of transport website). 
World Bank Technical Paper n°527 “Transport Policies for the Euro-Mediterranean Free-Trade Area”. 
With  more  than  1  million  nationals  residing  abroad  who  arrive  yearly  at  Moroccan  airports,  this 
phenomenon is at present responsible for more than a third of all arrivals in Moroccan airports (Eurostat 
2001 figures - Tourism in the Mediterranean Countries). 
Casablanca (3.515.189), Marrakech (1.393.015) and Agadir (1.098.618), all 2001 Moroccan Ministry of 
Transport  figures.  According  to  the  same  source,  over  the  1991-2001  period  especially  Casablanca 
airport has seen an important growth, more than doubling its passenger turn-over over the same period. 

10 

 
 
  
 
                                                 
Royal Air Maroc 

Royal Air Maroc (RAM), Morocco’s flag-carrier, is operating scheduled international flights 
from Morocco to destinations in Africa, Europe and North America, as well as a domestic and 
a  charter  network.  In  2002  the  company  served  3,3  million  passengers  on  44  destinations, 
with a fleet of 30 aircraft and almost 6.000 employees. While for some years the privatisation 
(up  till  25%)  of  the  company  has  been  high  on  the  political  agenda,  RAM  is  largely 
government-owned, with limited stakes by Air France (4%) and Iberia (1,3%)26. According to 
recent  statements  by  RAM’s  CEO,  a strategic aim of the company is to turn its Casablanca 
basis  into  a  regional  hub  between  West  Africa  and  the  rest  of  the  world,  a  niche  which  is 
currently being served by Community airports in general, and Paris in particular. Since 2000 
the company is the majority stakeholder (51%) of Air Senegal, while RAM has been tacking 
up routes from defunct West Africa carrier Air Afrique27. 

The particular importance of Air Traffic Management in Community-Morocco aviation 

From a strategic point of view, the need for close Air Traffic Management (ATM) relations 
between  the  Community  and  Morocco  stem  from  Morocco's  geographical  position.  Flights 
between  Spain  and  its  Madeira  and  Canary  islands,  as  well  as  most  flights  between  the 
Community  and  destinations  in  Latin  American  pass  via  the  Casablanca  Flight  Information 
Region (FIR).  

In  this  respect  it  has  to  be  noted  that  Morocco  was  the  first  North  African  state  which 
concluded  a  bilateral  agreement  with  Eurocontrol,  through  which  Eurocontrol  already 
calculates, bills, collects and manages en-route charges. 

It is evident that the need for ATM-relations which are as close as possible can only grow, in 
view of the creation of the Single European Sky and the implementation of Reduced Vertical 
Separation-flow  management.  Equally,  the  Community  together  with  Morocco  will  need  to 
evaluate  the  participation  of  Morocco  in  the  European  Upper  Flight  Information  Region 
(EUIR), as an important aspect of the Single Sky Initiative. 

Both with regard to safety as with regard to efficiency Community carriers stand to gain from 
ever closer relations in the field of ATM, which, it would seem, would benefit most from an 
application of Community standards which is as broad as possible.  

47. 

Therefore, the Commission recommends to the Council that it be authorised to start 
negotiations  on  a  Euro-Mediterranean  Aviation  Agreement  between  the  European 
Community and the Kingdom of Morocco. 

4.2.5.  Negotiations  on  a  Euro-Mediterranean  Aviation  Agreement  with  Lebanon  and 

Jordan 

48. 

26 
27 
28 

Because  of  the  quickly  growing  importance  of  its  aviation  market,  the  particularly 
open  aviation  policy  it  is  pursuing  towards  third  countries  in  general  and  the 
Community  in  particular28,  as  well  as  the  expressed  will  to  enter  into  aviation 
negotiations with the Community, the Commission is of the opinion that among the 

Data from the Royal Air Moroc website. 
Flight International, April 2002. 
See “Lebanon’s Experience in Air Transport Liberalisation in the Middle East”, ATConf/5 2003, ICAO 
Montreal. 

11 

 
 
  
 
                                                 
Community's  Mashrek  neighbours,  Lebanon  currently  offers  good  chances  for 
fruitful negotiations on a comprehensive Aviation Agreement. 

49. 

With  around  20%  of  its  exports  destined  to,  and  more  than  44%  of  its  imports 
stemming from the Community (with the value in both import and export incessantly 
increasing), the Community is Lebanon’s main trading partner29. Passenger traffic at 
Beirut International Airport has seen an uninterrupted annual growth between 1988 
and 2000, reaching at least 10 % in almost every year during that period30. 

Recent aviation developments in Lebanon 

The Lebanese government decided in 2000 to implement an open sky policy, which 
included  fifth  freedom  rights  without  reciprocity.  An  autonomous  Civil  Aviation 
Authority will be established as a pure regulator replacing the Directorate-General of 
Civil  Aviation  which  is  answerable  to  the  Ministry  of  Public  Works  and  transport. 
The  institution  building  of  the  Civil  Aviation  Authority  will  receive  technical 
assistance from MEDA funds. 

The Lebanese flag carrier, Middle East Airlines, has so far benefited from the open 
sky policy. After having lost more than $400 million in 1994-2001, in the financial 
year 2002 Middle East Airlines could report the first profit since the mid-1970s. The 
other 
the  cargo-only  carrier  Trans 
Mediterranean Airways. 

international  Lebanon-based  airline 

is 

Beirut International Airport offers substantial potential for air traffic growth since the 
airport  capacity  of  six  million  yearly  passengers  is  the  double  of  the  current 
passenger volume. 

Generally  speaking,  Jordan 
trade 
liberalisation,  for  which  its  relations  with  the  Community  become  ever  more 
important, also in view of the EU-Jordan Association Agreement which entered into 
force in 2002.  

is  following  a  policy  of  economic  and 

In particular, the Government is seeking to establish an open aviation policy, also in 
view  of  encouraging  the  further  development  of  tourism.  In  this  respect  it  is 
important to note that an important MEDA project is being established with the aim 
of  assisting 
the 
Government’s  policy  of  liberalisation  of  the  markets  and  of  introduction  of  a 
comprehensive regulatory framework in the civil aviation sector.  

the  Jordanian  Civil  Aviation  Authority 

implementing 

in 

Although in absolute terms air traffic between the Community and Jordan is rather 
limited  (around  half  the  size  of  Lebanon’s),  it  has  seen  an  uninterrupted  growth 
totalling  250%  between  1991  and  2001,  when  the  overall  Jordan  economy  was  hit 
particularly hard by the events following September 11th, 2001. In 2003, two thirds 
of all scheduled traffic between the Community and Jordan was operated by Jordan’s 
flag carrier Royal Jordanian31, the privatisation of which was put on hold following 
September 11th, 2001, and which continues to profit from considerable support of the 

50. 

51. 

52. 

29 
30 

31 

Eurostat and IMF 2001 figures. 
Compiled OAG figures. For 1998, 5 out of the 8 main Beirut city pairs involved enlarged-Community 
airports. 
Compiled OAG 2003 figures. 

12 

 
 
  
 
                                                 
53. 

5. 

54. 

55. 

56. 

57. 

58. 

32 

33 
34 

Jordan  government32.  Most  interesting  however  is  the  desire  of  the  Jordan 
Government to develop Queen Alia Amman airport into a important (cargo) hub on 
the Mediterranean side of the Middle East. 

Therefore, the Commission recommends to the Council that it be authorised to start 
negotiations  on  a  Euro-Mediterranean  Aviation  Agreement  between  the  European 
Community  and  the  Republic  of  Lebanon  on  the  one  hand,  and  between  the 
European Community and the Kingdom of Jordan on the other hand. 

TURKEY 

The  definition  of  a  Community  external  aviation  policy  towards  its  neighbouring 
countries necessitates a careful assessment of aviation relations with Turkey. 

The Commission invites the Turkish authorities to start negotiations on the basis of 
its  “horizontal”  mandate  with  a  view  to  conclude  a  Community  agreement  which 
brings the bilateral agreements of the Member States with Turkey fully in line with 
Community  law.  As  the  Commission  already  disposes  of  this  mandate,  such 
negotiations could start as soon as possible. 

However,  even  closer  aviation  relations,  through  a  comprehensive  aviation 
agreement between an enlarged Community and Turkey, are desirable, both in view 
of Turkey’s status as a candidate country as well as from an economic point of view. 
The Community is by far Turkey’s most important trade partner, in terms of export 
as well as in terms of import, while Turkey currently ranks as the Community’s 10th 
largest customer and its 11th biggest supplier33. With regard to aviation, Turkey is the 
prime Community tourism destination in the Mediterranean basin, it is an important 
market for visiting family and relatives-driven traffic. Indeed, of all passenger traffic 
between  the  Community  and  all  of  the  countries  falling  within  the  geographical 
scope  of  this  Communication,  Community-Turkey  traffic  represents  more  than  one 
third, both with regard to scheduled as with regard to non-scheduled traffic34. Due to 
its geographical location, Turkey is also a promising cargo-partner. 

In  addition,  close  aviation  relations  between  the  European  Community  and  Turkey 
are  justified  by  the  fact  that  Turkey  is  indisputably  a  member  of  the  European 
aviation  family,  and  as  such  a  full  member  of  all  inter-governmental  aviation  co-
operation structures in Europe (ECAC, JAA, Eurocontrol). 

For the Commission, these arguments suffice to consider that whilst future aviation 
relations  with  Turkey  could  share  some  of  the  principles  of  a  Euro-Mediterranean 
Aviation Agreement (such as the free aviation market it encompasses) Community-
Turkey  aviation  co-operation  in  such  fields  as  safety,  security  and  Air  Traffic 

In 2002 the Jordan Civil Aviation Authority and Royal Jordanian even signed an agreement granting the 
latter  the  exclusive  right  to  operate  regular  flights  from  and  to  the  Kingdom  for  a  four-year  term, 
allowing other Jordanian airline companies only to operate charter flights during the same period. 
Eurostat, 2002 figures. 
OAG 2003 figures. As to scheduled services, Turkish carriers have traditionally carried up to two thirds 
of  this  market.  Since  2001  however,  the  market  seems  to  become  more  equally  divided  between 
Community and Turkish carriers. 

13 

 
 
  
 
                                                 
59. 

6. 

1.1 

1.2 

1.3 

1.4 

Management  could  go  further.  Also,  Turkey’s  eventual  integration  into  a  European 
Common Aviation Area remains an option. 

Therefore,  the  Commission  intends  to  engage  actively  in  exploratory  contacts  with 
the Turkish authorities, in order to assess the possibilities for a Community-Turkey 
Aviation  Agreement,  with  a  view  to  an  aviation  co-operation  which  is  to  be  as 
comprehensive as possible. 

CONCLUSIONS 

On the basis of the horizontal mandate conferred upon it by the Council on June 5th 
2003, the Commission systematically opens negotiations with all of its neighbouring 
countries,  in  order  to  replace,  via  Community  agreements,  those  provisions  in  the 
bilateral  aviation  agreements  between  Member  States  and  neighbouring  countries 
which  are  contrary  to  Community-law,  following  the  ECJ's  November  5th  2002 
judgements. 

The Commission envisages the conclusion of comprehensive aviation agreements, of 
a  “single  market”-model,  with  neighbouring  countries  that  are  engaged  in  pan-
European  aviation  co-operation.  To  this  end  the  Commission  recommends  that  its 
existing negotiating mandate for a European Common Aviation Area be extended to 
include all of the five Western-Balkan countries. 

The  Commission  envisages 
the  conclusion  of  Euro-Mediterranean  Aviation 
Agreements  with  its  Mediterranean  Partners.  The  Commission  recommends  that 
these negotiations start with Morocco, with Lebanon and with Jordan. 

With regard to Turkey the Commission will enter into preliminary discussions, with 
a  view  to  arriving  at  aviation  co-operation  which  is  as  comprehensive  as  possible, 
through an Community-Turkey Aviation Agreement for which a negotiating mandate 
will be asked for based on the outcome of said preliminary discussions. 

14