Regulation (EC) No 550/2004 of the European Parliament and of the Council of 10 March 2004 on the provision of air navigation services in the single European sky (the service provision Regulation) (Text with EEA relevance)
Date: 2004-03-10
Institutions: Council of the European Union, European Parliament
Subjects: air space, air traffic, common transport policy, organisation of transport, provision of services, trans-European network

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REGULATION (EC) No 550/2004 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of 10 March 2004

on the provision of air navigation services in the single European sky

(the service provision Regulation)

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,

system of certification aimed at preserving public interest
requirements, most notably in terms of safety, and to
improve charging mechanisms.

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

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

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

Having regard to the opinion of
Regions (3),

the Committee of

the

Acting in accordance with the procedure laid down in
Article 251 of the Treaty (4), in the light of the joint text
approved by the Conciliation Committee on 11 December
2003,

Whereas:

(1) Member States have restructured, to varying degrees,
their national air navigation service providers by increas-
ing their level of autonomy and freedom to provide
is increasingly necessary to ensure that
services.
minimum public-interest
requirements are satisfied
under this new environment.

It

(2)

The report of the High Level Group on the single
European sky of November 2000 has confirmed the
need for rules at Community level to distinguish between
regulation and service provision and to introduce a

(1) OJ C 103 E, 30.4.2002, p. 26.
(2) OJ C 241, 7.10.2002, p. 24.
(3) OJ C 278, 14.11.2002, p. 13.
(4) Opinion of the European Parliament of 3 September 2002 (OJ
C 272 E, 13.11.2003, p. 303), Council common position of
18 March 2003 (OJ C 129 E, 3.6.2003, p. 16) and position of the
European Parliament of 3 July 2003 (not yet published in the
Official Journal). Legislative resolution of the European Parliament
of 29 January 2004 and Decision of the Council of 2 February
2004.

(3)

(4)

Regulation (EC) No 549/2004 of the European Parlia-
ment and of
the Council of 10 March 2004 (the
framework Regulation) (5) lays down the framework for
the creation of the single European sky.

In order to create the single European sky, measures
should be adopted to ensure the safe and efficient
provision of air navigation services consistent with the
organisation and use of airspace as provided for in
Regulation (EC) No 551/2004 of the European Parlia-
ment and of the Council of 10 March 2004 on the
organisation and use of
the airspace in the single
European sky (the airspace Regulation) (6). The establish-
ment of a harmonised organisation for the provision of
such services is important in order to respond adequately
to the demand of airspace users and to regulate air traffic
safely and efficiently.

(5)

The provision of air traffic services, as envisaged by this
Regulation, is connected with the exercise of the powers
of a public authority, which are not of an economic
nature justifying the application of the Treaty rules of
competition.

(6) Member States are responsible for monitoring the safe
and efficient provision of air navigation services and for
the control of compliance by air navigation service
providers with the common requirements established at
Community level.

(7) Member States should be permitted to entrust to recog-
nised organisations, which are technically experienced,
the verification of compliance of air navigation service
providers with the common requirements established at
Community level.

(5) See page 1 of this Official Journal.
(6) See page 20 of this Official Journal.

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(8)

(9)

Smooth operation of the air transport system also
requires uniform and high safety standards for air
navigation service providers.

(16) Air navigation service providers should establish and
maintain close cooperation with military authorities
responsible for activities that may affect general air
traffic, through appropriate arrangements.

Arrangements should be made to harmonise the
licensing systems for controllers, in order to improve
the availability of controllers and to promote the mutual
recognition of licences.

(17) The accounts of all air navigation service providers

should provide for maximum transparency.

(10) Whilst guaranteeing the continuity of service provision,
a common system should be established for certifying
air navigation service providers, which constitutes a
means for defining the rights and obligations of those
providers and for regular monitoring of compliance
with such requirements.

(18) The introduction of harmonised principles and con-
ditions for access to operational data should facilitate
the provision of air navigation services and the operation
of airspace users and airports under a new environment.

(19) Charging conditions applying to airspace users should

be fair and transparent.

(11) Conditions attached to certificates should be objectively
justified and should be non-discriminatory, proportion-
ate and transparent, and compatible with relevant inter-
national standards.

(20) User charges should provide remuneration for the
facilities and services provided by air navigation service
providers and Member States. The level of user charges
should be proportionate to the cost, taking into consider-
ation the objectives of safety and economic efficiency.

(12) The certificates should be mutually recognised by all
Member States in order to allow air navigation service
providers to provide services in a Member State other
than the country in which they obtained their certificates,
within the limits of the safety requirements.

(13) The provision of communication, navigation and sur-
veillance services, as well as aeronautical information
services, should be organised under market conditions
whilst taking into account the special features of such
services and maintaining a high level of safety.

(14)

In the interest of facilitating the safe handling of air
traffic across the boundaries of the Member States for
the benefit of the airspace users and their passengers, the
system of certification should provide for a framework to
enable Member States to designate providers of air traffic
services, regardless of where they have been certified.

(21) There should be no discrimination between airspace
users as to the provision of equivalent air navigation
services.

(22) Air navigation service providers offer certain facilities
and services directly related to the operation of aircraft,
the costs of which they should be able to recover
according to the ‘user pays’ principle, which is to say
that airspace users should pay for the costs they generate
at, or as close as possible to, the point of use.

(23)

It is important to ensure the transparency of the costs to
which such facilities or services give rise. Accordingly,
any changes made to the system or level of charges
should be explained to airspace users; such changes or
investment proposed by air navigation service providers
should be explained as part of an exchange of infor-
mation between their management bodies and airspace
users.

(15) On the basis of their analysis of safety considerations,
Member States should be able to designate one or more
providers of meteorological services in respect of all or
part of the airspace under their responsibility, without
the need to organise a call for tenders.

(24) There should be scope for modulating charges that
contribute to maximising system-wide capacity. Finan-
cial incentives may be a useful way of accelerating the
introduction of ground-based or airborne equipment
that increases capacity, of rewarding high performance
or of offsetting the inconvenience of choosing less
desirable routings.

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(25)

In the context of those revenues raised to provide a
reasonable return on assets, and in direct correlation
with the savings made from efficiency improvements,
the Commission should study the possibility of estab-
lishing a reserve aimed at reducing the impact of a
sudden increase in charges to airspace users at times of
reduced levels of traffic.

(26) The Commission should examine the feasibility of
organising temporary financial aid for measures to
increase the capacity of Europe’s air traffic control
system as a whole.

(27) The establishment and imposition of charges on airspace
users should be reviewed by the Commission on a
regular basis, in cooperation with Eurocontrol, and with
national supervisory authorities and airspace users.

(28) Owing to the particular sensitivity of information con-
cerning air navigation service providers, national super-
should not disclose information
visory authorities
covered by the obligation of professional secrecy, with-
out prejudice to the organisation of a system for
monitoring and publishing the performance of those
providers,

HAVE ADOPTED THIS REGULATION:

CHAPTER I

GENERAL

Article 1

Scope and objective

1. Within the scope of the framework Regulation, this
Regulation concerns the provision of air navigation services in
the single European sky. The objective of this Regulation is to
establish common requirements for the safe and efficient
provision of air navigation services in the Community.

2.
This Regulation shall apply to the provision of air
navigation services for general air traffic in accordance with
and within the scope of the framework Regulation.

Article 2

Tasks of national supervisory authorities

The national supervisory authorities referred to in
1.
Article 4 of
the framework Regulation shall ensure the
appropriate supervision of the application of this Regulation,

in particular with regard to the safe and efficient operation of
air navigation service providers which provide services relating
to the airspace falling under the responsibility of the Member
State which nominated or established the relevant authority.

2.
To this end, each national supervisory authority shall
organise proper inspections and surveys to verify compliance
with the requirements of this Regulation. The air navigation
service provider concerned shall facilitate such work.

3.
In respect of functional airspace blocks that extend
across the airspace falling under the responsibility of more
than one Member State, the Member States concerned shall
conclude an agreement on the supervision provided for in this
Article with regard to the air navigation service providers
providing services relating to those blocks. Member States may
conclude an agreement on the supervision provided for in this
Article with regard to the air navigation service provider
providing services in a Member State other than that in which
the provider has its principal place of operation.

4.
National supervisory authorities shall make appropriate
arrangements for close cooperation with each other to ensure
adequate supervision of air navigation service providers hold-
ing a valid certificate from one Member State that also provide
services relating to the airspace falling under the responsibility
of another Member State. Such cooperation shall
include
arrangements for the handling of cases involving non-com-
pliance with the applicable common requirements set out in
Article 6 or conditions set out in Annex II.

Article 3

Recognised organisations

1.
National supervisory authorities may decide to delegate
in full or in part the inspections and surveys referred to
in Article 2(2) to recognised organisations that fulfil the
requirements set out in Annex I.

A recognition granted by a national supervisory authority
2.
shall be valid within the Community for a renewable period of
three years. National supervisory authorities may instruct any
of the recognised organisations located in the Community to
undertake these inspections and surveys.

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Article 4

Safety requirements

Article 7

Certification of air navigation service providers

The Commission shall,
in accordance with the procedure
referred to in Article 5(3) of the framework Regulation, identify
and adopt the Eurocontrol safety regulatory requirements
(ESARRs) and subsequent amendments to those requirements
this Regulation that shall be made
within the scope of
mandatory under Community law. Publication shall take the
form of references to such ESARRs in the Official Journal of the
European Union.

The provision of all air navigation services within the
1.
Community shall be subject to certification by Member States.

Article 5

Licensing of controllers

2.
Applications for certification shall be submitted to the
national supervisory authority of the Member State where the
applicant has its principal place of operation and, if any, its
registered office.

As soon as possible after the entry into force of this Regulation,
the Commission shall present, if appropriate, a proposal to the
European Parliament and to the Council on the licensing of
controllers.

CHAPTER II

RULES FOR THE PROVISION OF SERVICES

Article 6

Common requirements

Common requirements for the provision of air navigation
services shall be established in accordance with the procedure
referred to in Article 5(3) of the framework Regulation. The
common requirements shall include the following:

— technical and operational competence and suitability,

— systems and processes for safety and quality management,

— reporting systems,

— quality of services,

— financial strength,

— liability and insurance cover,

3.
National supervisory authorities shall issue certificates to
air navigation service providers where they comply with the
common requirements referred to in Article 6. Certificates
may be issued individually for each type of air navigation
service as defined in Article 2 of the framework Regulation, or
for a bundle of such services, inter alia, where a provider of air
traffic services, whatever its legal status, operates and maintains
its own communication, navigation and surveillance systems.
The certificates shall be checked on a regular basis.

Certificates shall specify the rights and obligations of air
4.
navigation service providers,
including non-discriminatory
access to services for airspace users, with particular regard to
safety. Certification may be subject only to the conditions set
out in Annex II. Such conditions shall be objectively justified,
non-discriminatory, proportionate and transparent.

5.
Notwithstanding paragraph 1, Member States may allow
the provision of air navigation services in all or part of the
airspace under their responsibility without certification in
cases where the provider of such services offers them primarily
to aircraft movements other than general air traffic.
In
those cases, the Member State concerned shall inform the
Commission and the other Member States of its decision and
of the measures taken to ensure maximum compliance with
the common requirements.

— ownership and organisational structure,

including the

prevention of conflicts of interest,

— human resources, including adequate staffing plans,

— security.

6. Without prejudice to Article 8 and subject to Article 9,
the issue of certificates shall confer on air navigation service
providers the possibility of offering their services to other air
navigation service providers, airspace users and airports within
the Community.

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National supervisory authorities shall monitor com-
7.
pliance with the common requirements and with the con-
ditions attached to the certificates. Details of such monitoring
shall be included in the annual reports to be submitted by
Member States pursuant to Article 12(1) of the framework
Regulation. If a national supervisory authority finds that the
holder of a certificate no longer satisfies such requirements or
conditions, it shall take appropriate measures while ensuring
continuity of services. Such measures may include the revo-
cation of the certificate.

framework of this Article regarding the designation of air
traffic service providers within specific airspace blocks in
respect of the airspace under their responsibility.

Article 9

Designation of providers of meteorological services

A Member State shall recognise any certificate issued in

8.
another Member State in accordance with this Article.

1. Member States may designate a provider of meteorologi-
cal services to supply all or part of meteorological data on an
exclusive basis in all or part of the airspace under their
responsibility, taking into account safety considerations.

In exceptional circumstances, Member States may post-
9.
pone compliance with this Article beyond the date resulting
from Article 19(2) by six months. Member States shall notify
the Commission of such postponement, giving their reasons
therefor.

2. Member States shall inform the Commission and other
Member States without delay of any decision within the
framework of this Article regarding the designation of a
provider of meteorological services.

Article 8

Designation of air traffic service providers

1. Member States shall ensure the provision of air traffic
services on an exclusive basis within specific airspace blocks
in respect of the airspace under their responsibility. For this
purpose, Member States shall designate an air traffic service
provider holding a valid certificate in the Community.

2. Member States shall define the rights and obligations to
be met by the designated service providers. The obligations
may include conditions for the timely supply of relevant
information enabling all aircraft movements in the airspace
under their responsibility to be identified.

3. Member States have discretionary powers in choosing a
service provider, on condition that
the latter fulfils the
requirements and conditions referred to in Articles 6 and 7.

4.
In respect of functional airspace blocks established in
accordance with Article 5 of the airspace Regulation that
extend across the airspace under the responsibility of more
than one Member State, the Member States concerned shall
jointly designate one or more air traffic service providers, at
least one month before implementation of the airspace block.

5. Member States shall inform the Commission and other
Member States immediately of any decisions within the

Article 10

Relations between service providers

1.
Air navigation service providers may avail themselves of
the services of other service providers that have been certified
in the Community.

2.
Air navigation service providers shall formalise their
working relationships by means of written agreements or
equivalent legal arrangements, setting out the specific duties
and functions assumed by each provider and allowing for the
exchange of operational data between all service providers in
so far as general air traffic is concerned. Those arrangements
shall be notified to the national supervisory authority or
authorities concerned.

In cases involving the provision of air traffic services, the
3.
approval of the Member States concerned shall be required. In
cases involving the provision of meteorological services, the
approval of the Member States concerned shall be required if
they have designated a provider on an exclusive basis in
accordance with Article 9(1).

Article 11

Relations with military authorities

Member States shall, within the context of the common
transport policy, take the necessary steps to ensure that
written agreements between the competent civil and military
authorities or equivalent legal arrangements are established in
respect of the management of specific airspace blocks.

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Article 12

Transparency of accounts

Access to relevant operational data shall be granted
2.
to appropriate authorities, certified air navigation service
providers, airspace users and airports on a non-discriminatory
basis.

1.
Air navigation service providers, whatever their system
of ownership or legal form, shall draw up, submit to audit and
publish their financial accounts. These accounts shall comply
with the international accounting standards adopted by the
Community. Where, owing to the legal status of the service
provider, full compliance with the international accounting
standards is not possible, the provider shall endeavour to
achieve such compliance to the maximum possible extent.

3.
Certified service providers, airspace users and airports
shall establish standard conditions of access to their relevant
operational data other than those referred to in paragraph 1.
National supervisory authorities shall approve such standard
conditions. Detailed rules relating to such conditions shall
in accordance with the
be established, where appropriate,
procedure referred to in Article 5(3) of
the framework
Regulation.

2.
In all cases, air navigation service providers shall publish
an annual report and regularly undergo an independent audit.

3. When providing a bundle of services, air navigation
service providers shall, in their internal accounting, identify
the relevant costs and income for air navigation services,
broken down in accordance with Eurocontrol’s principles for
establishing the cost-base for route facility charges and the
calculation of unit rates and, where appropriate, shall keep
consolidated accounts for other, non-air-navigation services,
as they would be required to do if the services in question were
provided by separate undertakings.

4. Member States shall designate the competent authorities
that shall have a right of access to the accounts of service
providers that provide services within the airspace under their
responsibility.

5. Member States may apply the transitional provisions of
Article 9 of Regulation (EC) No 1606/2002 of the European
Parliament and of
the Council of 19 July 2002 on the
application of international accounting standards (1) to air
navigation service providers that fall within the scope of that
regulation.

Article 13

Access to and protection of data

In so far as general air traffic is concerned, relevant
1.
operational data shall be exchanged in real-time between all
air navigation service providers, airspace users and airports, to
facilitate their operational needs. The data shall be used only
for operational purposes.

(1) OJ L 243, 11.9.2002, p. 1.

CHAPTER III

CHARGING SCHEMES

Article 14

General

In accordance with the requirements of Articles 15 and 16, a
charging scheme for air navigation services shall be developed
that contributes to the achievement of greater transparency
with respect to the determination, imposition and enforcement
of charges to airspace users. This scheme shall also be
consistent with Article 15 of the 1944 Chicago Convention
on International Civil Aviation and with Eurocontrol’s charging
system for en route charges.

Article 15

Principles

1.
The charging scheme shall be based on the account of
costs for air navigation services incurred by service providers
for the benefit of airspace users. The scheme shall allocate
these costs among categories of users.

The following principles shall be applied when estab-

2.
lishing the cost-base for charges:

(a)

(b)

the cost to be shared among airspace users shall be the
full cost of providing air navigation services, including
appropriate amounts for interest on capital investment
and depreciation of assets, as well as the costs of
maintenance, operation, management and adminis-
tration;

the costs to be taken into account in this context shall be
those assessed in relation to the facilities and services
provided for and implemented under the ICAO Regional
Air Navigation Plan, European Region. They may also
include costs incurred by national supervisory authorities
and/or recognised organisations, as well as other costs

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incurred by the relevant Member State and service
provider in relation to the provision of air navigation
services;

integrated service provision. To that effect, such charges
may be used to provide:

(c)

the cost of different air navigation services shall be
identified separately, as provided for in Article 12(3);

(d)

(e)

cross-subsidy between different air navigation services
shall be allowed only when justified for objective reasons,
and subject to clear identification;

transparency of the cost-base for charges shall be guaran-
teed. Implementing rules for the provision of information
by the service providers shall be adopted in order to
permit reviews of the provider’s forecasts, actual costs
and revenues. Information shall be regularly exchanged
between the national supervisory authorities, service
providers, airspace users, the Commission and Eurocon-
trol.

— mechanisms,

including incentives consisting of
financial advantages and disadvantages, to encour-
age air navigation service providers and/or airspace
users to support improvements in air traffic flow
management
increased capacity and
reduction of delays, while maintaining an optimum
safety level. The decision as to whether to apply
such mechanisms remains the sole responsibility of
each Member State,

such as

— revenues to benefit projects designed to assist
specific categories of airspace users and/or air navi-
gation service providers in order to improve collec-
tive air navigation infrastructures, the provision of
air navigation services and the use of airspace.

The implementing rules in the fields covered by para-
4.
graphs 1, 2 and 3 shall be established in accordance with the
procedure referred to in Article 8 of the framework Regulation.

3. Without prejudice to Eurocontrol’s charging system for
en route charges, Member States shall comply with the
following principles when setting charges in accordance with
paragraph 2:

Article 16

Review of charges

(a)

charges shall be set for the availability of air navigation
services under non-discriminatory conditions. When
imposing charges on different airspace users for the use
of the same service, no distinction shall be made in
relation to the nationality or category of the user;

1.
The Commission shall provide for the ongoing review of
compliance with the principles and rules referred to in
Articles 14 and 15, acting in cooperation with the Member
States. The Commission shall endeavour to establish the
necessary mechanisms
for making use of Eurocontrol
expertise.

(b)

exemption of certain users, especially light aircraft and
State aircraft, may be permitted, provided that the cost of
such exemption is not passed on to other users;

(c)

(d)

air navigation services may produce sufficient revenues
to exceed all direct and indirect operating costs and to
provide for a reasonable return on assets to contribute
towards necessary capital improvements;

charges shall reflect the cost of air navigation services and
facilities made available to airspace users, taking into
account the relative productive capacities of the different
aircraft types concerned;

(e)

charges shall encourage the safe, efficient and effective
provision of air navigation services with a view to a high
level of safety and to cost efficiency and shall stimulate

2.
At the request of one or more Member States which
consider that the abovementioned principles and rules have
the
not been properly applied, or on its own initiative,
Commission shall carry out an investigation on any allegation
of non-compliance or non-application of the principles and/
or rules concerned. Within two months of receipt of a request,
after having heard the Member State concerned and after
consulting the Single Sky Committee in accordance with the
procedure referred to in Article 5(2) of
the framework
Regulation, the Commission shall take a decision on the
application of Articles 14 and 15 and as to whether the
practice concerned may continue.

3.
The Commission shall address its decision to the Member
States and inform the service provider thereof, in so far as it is
legally concerned. Any Member State may refer the Com-
mission’s decision to the Council within one month. The
Council, acting by a qualified majority, may take a different
decision within a period of one month.

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CHAPTER IV

FINAL PROVISIONS

Article 17

Adjustment to technical progress

In order to make adaptations to technical developments,
1.
adjustments may be made to the Annexes in accordance with
the procedure referred to in Article 5(3) of the framework
Regulation.

2.
The Commission shall publish implementing rules
adopted on the basis of this Regulation in the Official Journal of
the European Union.

information about air navigation service providers,
business relations or their cost components.

their

2.
Paragraph 1 shall be without prejudice to the right of
disclosure by national supervisory authorities where it is
essential for the purposes of fulfilling their duties, in which
case such disclosure shall be proportionate and shall have
regard to the legitimate interests of air navigation service
providers in the protection of their business secrets.

3. Moreover, paragraph 1 shall not preclude disclosure of
information, other than information of a confidential nature,
on the conditions and performance of service provision.

Article 19

Entry into force

Article 18

Confidentiality

1.
This Regulation shall enter into force on the 20th day
following that of its publication in the Official Journal of the
European Union.

1.
Neither the national supervisory authorities, acting in
accordance with their national legislation, nor the Commission
shall disclose information of a confidential nature, in particular

2.
However, Articles 7 and 8 shall enter into force one year
after publication of the common requirements, as referred to
in Article 6, 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 Strasbourg, 10 March 2004.

For the European Parliament

The President

P. COX

For the Council

The President

D. ROCHE

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ANNEX I

REQUIREMENTS FOR RECOGNISED ORGANISATIONS

The recognised organisation must:

— be able to document extensive experience in assessing public and private entities in the air transport sectors, in
particular air navigation service providers, and in other similar sectors in one or more of the fields covered by
this Regulation,

— have comprehensive rules and regulations for the periodic survey of the abovementioned entities, published

and continually upgraded and improved through research and development programmes,

— not be controlled by air navigation service providers, by airport management authorities or by others engaged

commercially in the provision of air navigation services or in air transport services,

— be established with significant technical, managerial, support and research staff commensurate with the tasks

to be carried out,

— be managed and administered in such a way as to ensure the confidentiality of information required by the

administration,

— be prepared to provide relevant information to the national supervisory authority concerned,

— have defined and documented its policy and objectives for and commitment to quality and have ensured that

this policy is understood, implemented and maintained at all levels in the organisation,

— have developed, implemented and maintained an effective internal quality system based on appropriate parts
of internationally recognised quality standards and in compliance with EN 45004 (inspection bodies) and with
EN 29001, as interpreted by the IACS Quality System Certification Scheme Requirements,

— be subject to certification of its quality system by an independent body of auditors recognised by the authorities

of the Member State in which it is located.

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ANNEX II

CONDITIONS TO BE ATTACHED TO CERTIFICATES

1.

Certificates shall specify:

(a)

the national supervisory authority issuing the certificate;

(b)

the applicant (name and address);

(c)

(d)

the services which are certified;

a statement of the applicant’s conformity with the common requirements, as defined in Article 6 of this
Regulation;

(e)

the date of issue and the period of validity of the certificate.

2.

Additional conditions attached to certificates may, as appropriate, be related to:

(a)

non-discriminatory access to services for airspace users and the required level of performance of such
services, including safety and interoperability levels;

(b)

the operational specifications for the particular services;

(c)

(d)

(e)

(f)

(g)

the time by which the services should be provided;

the various operating equipment to be used within the particular services;

ring-fencing or restriction of operations of services other than those related to the provision of air
navigation services;

contracts, agreements or other arrangements between the service provider and a third party and which
concern the service(s);

provision of information reasonably required for the verification of compliance of the services with the
common requirements, including plans, financial and operational data, and major changes in the type
and/or scope of air navigation services provided;

(h)

any other legal conditions which are not specific to air navigation services, such as conditions relating to
the suspension or revocation of the certificate.