Communication from the EFTA Surveillance Authority under Article 4.1. (a) of the Act referred to in point 64a in Annex XIII to the EEA Agreement (Council Regulation (EEC) No 2408/92 of 23 July 1992 on access for Community air carriers to intra-Community air routes) — Imposition of new public service obligations in respect of scheduled air services on the route Narvik (Framnes) — Bodø v.v.
Date: 2004-10-07
Institutions: European Commission
Subjects: EFTA, Norway, air transport, airline, inland transport, public service, transport capacity

7.10.2004

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EUROPEAN ECONOMIC AREA

EFTA SURVEILLANCE AUTHORITY

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

Imposition of new public service obligations in respect of scheduled air services on the route
Narvik (Framnes) — Bodø v.v.

(2004/C 248/09)

1. INTRODUCTION

Pursuant to Article 4.1 (a) of Council Regulation (EEC) No 2408/92 of 23 July 1992 on access for Com-
munity air carriers to intra-Community air routes, Norway has decided to impose new public service obli-
gations as of 8 March 2005 on the following route:

Narvik (Framnes) — Bodø v. v.

2. THE PUBLIC SERVICE OBLIGATIONS INCLUDE THE FOLLOWING:

2.1. Minimum frequencies, seating capacity, routing and timetables

The requirements apply to January to June and August to December. In July, there are requirements as to
seating capacity only, with a minimum number of seats not less than 80 % of the minimum levels specified
below.

Throughout the year a daily service obligation applies in both directions.

Frequencies:

— Minimum three daily return services Monday to Friday and minimum four return services Saturday and

Sunday combined.

Seating capacity:

— in both directions at least 450 seats shall be offered Monday to Friday combined and at least 95 seats

Saturday and Sunday combined,

— if the number of seats occupied during the period 1 January to 30 June or 1 August to 30 November
exceeds 70 % of the number of seats offered, the carrier hall increase the seating capacity in accordance
with the rules laid down by the Ministry of Transport and Communications in the Annex to this publi-
cation,

— if the number of seats occupied during the period 1 January to 30 June or 1 August to 30 November is
lower than 35 % of the number of seats offered, the carrier may reduce the seating capacity in accord-
ance with the rules laid down by the Ministry of Transport and Communications in the Annex to this
publication.

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Routing:

— The required services shall be non-stop.

Timetables:

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

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

— First arrival in Bodø shall be no later than 9.30 and last departure from Bodø no earlier than 18.00.

2.2. Aircraft category

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

Carriers' attention is especially drawn to technical and operative conditions applying at the airports,
including short runway at Narvik (Framnes).

For further information, please contact:

Luftfartstilsynet (Civil Aviation Authority),
P O Box 8050 Dep,
N-0031 Oslo;
Tel. (+ 47) 23 31 78 00.

2.3. Fares

— maximum basic one-way fare (fully flexible) in the operating year beginning 8 March 2005 must not

exceed NOK 1112,-,

— the carrier is responsible for making the tickets available at a price not exceeding the maximum basic
one-way fare through at least one sales channel. The carrier is also responsible for keeping the custo-
mers informed about how such tickets are available,

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

discounts available under such agreements,

— social discounts conforming to the usual practice shall be offered.

2.4. Service continuity

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

2.5 Cooperation arrangements

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

Fares:

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

— bonus points from frequent flyer programmes can neither be earned nor redeemed on the flights.

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Transfer conditions:

— All conditions set out by the carrier for the transfer of passengers to and from other carriers' routes,
including connecting times and through check-in of tickets and baggage, shall be objective and non-
discriminatory.

3. OTHER

These public service obligations replace those published as (Part 8) in Official Journal of the European Union
C 112 of 9 May 2002, page 8, as far as scheduled air services on the route Narvik (Framnes) — Bodø v.v.
are concerned.

4. INFORMATION

Further information can be obtained from:

Ministry of Transport and Communications,
PO Box 8010 Dep,
N-0030 Oslo;
Tel. (+47) 22 24 83 53, fax (+47) 22 24 56 09

This documentation is also available on the Internet:

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

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to the Impositions of Public Service Obligations in Respect of Scheduled Air Services in Norway

ANNEX

ADJUSTMENT OF PRODUCTION/AVAILABLE SEATS — PRODUCTION ADJUSTMENT CLAUSE

1. Purpose of the production adjustment clause

The purpose of the production adjustment clause is to ensure that supplied capacity/seats offered by the operator is
adjusted to changes in market demand.

Whenever the number of passengers increases significantly and exceeds the following specified limits for the percen-
tage of seats occupied at any time (the passenger load factor), the operator shall increase available seats offered.

The operator may accordingly decrease available seats offered when the number of passengers decreases significantly.

See specification below in 3.

2. Periods for measuring passenger load factors

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

3. Conditions for changing production/available seats offered

3.1. Conditions for increasing production

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

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

3.2. Conditions for decreasing production

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

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

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

4. Procedures for changes in production

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

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

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

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

5. Unchanged financial compensation when changing production

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

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