Communication from the Commission to the European Parliament and the Council - A Framework for Developing Relations with the Russian Federation in the Field of Air Transport
Date: 2005-03-14
Institutions: European Commission
Subjects: EU relations, Russia, air transport, bilateral relations, cooperation policy, negotiation of an agreement (EU)

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 14.3.2005 
COM(2005) 77 final 

COMMUNICATION FROM THE COMMISSION  
TO THE EUROPEAN PARLIAMENT AND THE COUNCIL 

A Framework for Developing Relations 
with the Russian Federation in the Field of Air Transport 

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1. 

INTRODUCTION AND SUMMARY 

The  overall  importance  of  the  relationship  between  the  EU  and  the  Russian 
Federation  as  key  strategic  partners  and  neighbours,  and  the  significance  of  our 
respective aviation and aeronautical sectors, argue strongly in favour of agreeing on a 
new framework for the organisation of our aviation relations. 

In  parallel  to  this  Communication,  the  Commission  therefore  recommends  that  the 
Council  authorise  the  Commission  to  negotiate,  on  behalf  of  the  European 
Community,  a  comprehensive  air  transport  agreement  with  the  Russian  Federation. 
This initiative builds on developments in the Community’s role in external aviation 
following  the  European  Court  of  Justice’s  November  5th  2002  Judgements  in  the 
“Open  skies”  cases,  which  recognised  exclusive  Community  competences  with 
regard  to  important  aspects  of  external  aviation,  and  on  the  Commission’s  White 
Paper “European transport policy for 2010: time to decide”1, which stressed the need 
for  the  Union  to  speak  with  a  single  voice  on  the  world  arena  in  defence  of  its 
industrial, social and environmental interests.  

Following  these  judgements,  the  Commission  indicated  that  it  intended  to  submit 
proposals for further  authorisations  to allow  it  to enter into negotiations covering a 
broad  range  of  air  transport  issues  with  selected  third  countries  of  strategic 
importance. 

There are substantial economic and political reasons for the Community to define a 
coherent  aviation  policy  towards  its  major  trading  partners,  notably  Russia,  with 
whom  the  EU  is  developing  a  close  economic  and  political  partnership  under  the 
framework  of  the  Partnership  and  Cooperation  Agreement  (PCA)2  and  the  four 
“Common  Spaces”  called  for  at  the  EU-Russia  Summit  in  St.  Petersburg  in  May 
2003, and in particular the Common Economic Space (CES). 

The EU-Russia partnership has been reinforced following the accession to the EU on 
May  1st  2004  of  ten  new  Member  States,  eight  of  which  have  historically 
experienced  particularly  close  economic  and  political  ties  with  Russia.  The  EU  is 
Russia's  main  trading  partner,  accounting  for  over  50%  of  its  overall  trade,  whilst 
Russia  is  the  EU's  fifth  trading  partner  (behind  the  US,  Switzerland,  China  and 
Japan)  and  accounts  for  around  5%  of  the  EU's  overall  trade.  Russia  is  the  second 
most important trading partner of the ten new Member States of the EU. 

The  integration  of  transport  systems  is  a  precondition  for  productive  co-operation. 
Aviation  is  a  particularly  dynamic  transport  sector  and  is  indispensable  to  link  the 
European  Union  with  its  neighbours  and  the  Russian  Federation  in  particular.  The 
establishment of an aviation policy towards Russia is therefore an important policy 
objective  within  the  overall  framework  of the  EU’s  developing  partnership  with  its 
large eastern neighbour.  

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COM(2001) 370 
Article 43 of the PCA opens the possibility to conclude specific transport agreements with the aim of 
improving the conditions of mutual market access and of services 

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Russia  offers  good  prospects  for  growth  for  airlines,  aircraft  manufacturers  and 
service  providers  in  Europe.  Russian  international  passenger  traffic  is  largely 
concentrated on European destinations. Around 75% of all Russian passenger traffic 
is directed towards European destinations and this is forecast to grow annually at a 
rate of 5.8%3 in the years to 2007. For the EU, the Russian Federation is currently the 
fourth largest foreign aviation market4.  

The  Russian  aviation  market  has  long  been  characterised  by  a  restrictive  approach. 
Market  access  is  strictly  limited  and  the  State  continues  to  play  an  important  and 
influential role in the aviation industry. However, confronted with increased demand 
and foreign competition, the Russian government has announced substantial reforms 
in  the  sector  including  gradual  liberalisation  of  the  domestic  market  and  airline 
privatisation  aimed  at  increasing  competition,  attracting  more  investment  and 
bringing about consolidation in the industry. 

EU-Russia  aviation  relations  have  been  dominated  in  the  past  by  the  contentious 
issues  of  Siberian  overflight  payments  and  Russian  concerns  with  respect  to  EU 
noise  and  safety  standards.  The  issue  of  Siberian  overflight  is  of  major  importance 
for European air carriers as it affects services between Europe and the growing and 
lucrative  markets  in  the  Far  East,  in  particular  China.  These  difficulties  have 
jeopardised opportunities for constructive cooperation and progress in such important 
areas of mutual interest as aviation safety and security. 

Today, relations are fragmented, notably with respect to the traffic rights and market 
opportunities  available  to  Community  carriers.  Member  States  acting  individually 
have neither been able to bring bilateral agreements into conformity with Community 
law  nor  resolve  such  crucial  issues  as  Siberian  overflight  payments,  nor  achieve 
significant progress in market access. Different approaches to safety and noise are a 
constant source for potential misunderstandings in aviation relations. 

A  comprehensive  EC-Russia  air  transport  agreement  would  aim  to  bring  about  the 
broadening  of  aviation  relations  and  establish  a  framework  in  which  both  the 
industry  and  users  can  benefit  from  improved  market  conditions,  a  stable  and 
consistent  legal  environment  between  the  two  markets,  and  mechanisms  through 
which differences can be avoided or effectively resolved.  

2. 

TRENDS IN RUSSIAN CIVIL AVIATION POLICY - MODERNISATION, CONSOLIDATION 
AND LIBERALISATION 

2.1. 

A growing and evolving market 

Air transport is one of the most dynamic transport modes in Russia. Civil aviation is 
a  significant  sector  in  the  Russian  economy  as  a  whole  employing  around  223  000 
people. According to the Russian Ministry of Transport, passenger air transport grew 
by 9.9% in 2003, cargo by 2.7%.  

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Source: IATA 
Source: European Commission: data on seats available, 2004 

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While  the  Russian  air  traffic  market  is  developing  rapidly,  it  remains  in  certain 
respects relatively immature with strong potential for growth in both passenger and 
cargo  sectors.  IATA  forecasts  indicate  that  between  2003  and  2007  Russia’s  civil 
aviation market will experience annual growth rates of 5.8% - above the more mature 
markets in Western Europe and the US. 

Only four commercial airlines –  Aeroflot,  Sibir, Pulkovo  and UT Air – carry more 
than  one  million  passengers  a  year.  Aeroflot  dominates  the  international  market 
whilst  in  the  domestic  market  it  faces  competition  from  the  others  (Sibir  is  the 
leading  Russian  domestic  passenger  carrier).  Aeroflot  provides  37.7%  of  the  total 
seats  supplied  in  the  overall  Russian-EU  market,  with  Lufthansa  the  next  nearest 
carrier with 12.6%5. 

2.2. 

A new strategy for air transport – towards privatisation and liberalisation 

In October 2003, the Russian government announced its new “Transport strategy for 
the Russian Federation”. 

As  regards  air  transport,  a  principal  objective  of  the  Russian  government  is  to 
develop  domestic  air  transport  through  major  restructuring  in  order  to  increase 
efficiency and quality of services. Russia has currently 215 registered airlines (267 in 
2000), including 55 state-owned carriers, a number which is expected to decrease in 
the years to come with increased competition, more stringent governmental licensing 
procedures and the enforcement of higher safety requirements. 

The  Russian  government  has  announced  plans  to  significantly  improve  the  overall 
competitiveness  of  Russian  carriers  by  adapting  to  international  commercial, 
environmental and service-related standards and progressively liberalise the market.  

Growth  in  passenger  traffic  in  recent  years  is  the  main  factor  behind  the  move  to 
speed  up  the  liberalisation  of  the  domestic  air  transport  market.  In  2002,  the 
liberalisation  of  the  domestic  market  began  with  abolishing  the  existing  quota 
system.  The  Russian  government  envisages  to  further  remove  quotas  and  to  thus 
rapidly bring about the full liberalisation of domestic air transport. 

The  government  aims  to  encourage  strategic  alliances  at  both  a  domestic  and 
international  level  to  contribute  to  preparing  Russian  carriers  for  competition. 
Indeed,  competitive  pressures  between  Russian  airlines  on  both  domestic  and 
international  routes  are  likely  to  bring  about  significant  changes  in  the  Russian 
airline industry in the years ahead. An early sign of the developments to come was 
the  signing  on  24th  May  2004  by  Aeroflot  of  a  Memorandum  of  Understanding 
preparing the ground for the Russian airline to join the SkyTeam alliance. There have 
also been announcements regarding the possible privatisation of Aeroflot. 

2.3.  Modernisation of infrastructure  

Most Russian airports need refurbishment and modernisation. The transport strategy 
adopted by the Russian government envisages further privatisation of airports as well 
as  an  “optimisation”  of  the  airport  network  in  the  whole  country.  Improving  the 

5 

Source: OAG 

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functioning  of  airports  will  be  critical  to  the  successful  development  of  the  civil 
aviation  sector  in  Russia.  Security  questions  and  procedures  play  an  increasingly 
important  role  since  the  dramatic  terrorist  acts  in  summer  2004.  A  new  law  on 
transport security has been prepared.  

Just  as  the  Russian  government  envisages  deep  reforms  in  the  domestic  aviation 
sector, it has also announced plans to restructure the aeronautical industry.  

Today, the availability of efficient and modern aircraft is the single most important 
growth-limiting factor for Russian airlines. Estimates suggest that airlines will have 
to  replace  a  third  of  their  ageing  fleets  (around  95%  of  existing  aircraft  were 
designed  between  1960  and  1980)  over  the  next  five  years.  Over  1  600  aircraft  in 
service do not comply with existing ICAO noise standards. 

Russia  has  traditionally  possessed  a  sizeable  aviation  industry.  Today  it  employs 
around  500  000  people  in  about  300  companies  and  research  and  engineering 
institutes.  However,  the  industry  is  in  desperate  need  of  investment,  modernisation 
and restructuring. 

This process seems to be underway following proposals put forward by the Russian 
Aviation  and  Space  Agency  (Rosaviakosmos)  in  the  context  of  Russia’s  new 
transport  strategy.  It  proposes  radical  measures  to  create  a  single  aerospace 
consortium  (OAK  –  Unified  Aircraft  Manufacture),  apparently  following  the 
example  of  EADS.  The  consortium  would  be  controlled  by  private  capital  (with 
government  participation  of  25.5%)  and  its  objective  would  be  to  achieve  a  10% 
share of the global aviation market. 

3. 

EU-RUSSIA AVIATION RELATIONS – THE NEED FOR A COMMUNITY APPROACH 

3.1. 

Growing markets of major mutual commercial interest 

Well-developed  aviation  links  to  the  European  Union  and  to  the  main  international 
destinations  are  essential  for  the  development  of  the  Russian  economy  and  for  its 
trade relations with the EU.  

Russian  international  passenger  traffic  is  largely  concentrated  on  European 
destinations. In 2002, 4.3 million passengers travelled between Russia and Western 
Europe  and  1  million  passengers  between  Russia  and  Central  and  Eastern  Europe. 
Around  75%  of  all  Russian  passenger  traffic  is  directed  towards  European 
destinations  and  is  forecast  to  experience  annual  growth  of  5.8%  in  the  years  to 
20076.  

Air  traffic  between  EU  and  Russia  rose  significantly  in  the  last  ten  years.  Weekly 
frequencies between EU Member States to Russia rose from 279 in 1992 to 465 in 
2003,  at  the  same  time  the  number  of  available  seats  in  EU-Russia  air  traffic 
increased from 44 880 seats in 1992 to 65 663 seats in 2003. The growth potential of 
the Russian market is widely recognised. 

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Source: IATA 

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The  highest  proportion  of  EU-Russia  air  traffic  is  between  Russia  and  Germany 
(39% of EU frequencies with Russia)7, followed by traffic with Spain (12%), France 
(11%),  UK  (8.5%)  and  Finland  (7%).  Among  new  Member  States,  Poland  and  the 
Czech Republic have significant traffic with the Russian Federation. 

Together with China, Russia is one of the largest “high potential” tourist markets in 
the world. The overall number of tourists to the Russian Federation grew by 7.3% in 
2002  (Europe  average  2.3%).  European  travel  companies  have  started  co-operation 
and  joint-ventures  with  companies  in  Russia.  Russian  tourism  is  of  increasing 
importance  to  the  EU  tourist  industry.  Russian  tourists  are  among  the  world’s  top 
spenders in international tourism (12 billion US Dollar in 2002).8 

3.2. 

Bilateral aviation relations between the EU Member States and Russia  

3.2.1.  A fragmented and restrictive market environment 

The  Russian  Federation  has  bilateral  air  services  agreements  with  23  of  the  25 
Member  States  regulating  in  particular  traffic  rights  and  related  issues  of  bilateral 
importance  (designation  of  airlines,  aviation  safety,  tariffs,  customs  etc.).  This 
fragmentation results in greater complexity than needed for the regulatory framework 
applicable to air services between the EU and Russia. 

Moreover,  Member  States’  bilateral  air  service  agreements  with  Russia  usually 
regulate market access heavily, not only in terms of limited designation of carriers or 
points which may be served, but also in terms of frequency or of capacity, which the 
designated airlines may operate.  

Beyond  the  illegalities  identified  by  the  European  Court  of  Justice  in  the  “Open 
Skies” judgements, there also exist legal issues in the area of European competition 
law,  which  will  need  to  be  addressed  in  the  context  of  a  future  EU-Russia  air 
transport agreement. 

3.2.2.  Clouds in the sky – the major outstanding issues  

3.2.2.1.  Siberian overflights 

EU airlines flying over Russian territory have to pay special royalties to their Russian 
competitor,  Aeroflot,  which  are  not  related  to  normal  payments  for  Air  Traffic 
Control  services.  These  payments,  which  are  imposed  by  Russia  in  the  bilateral 
agreements with Member States through mandatory commercial agreements between 
EU  airlines  and  Aeroflot,  constitute  an  unacceptable  charge  for  transit,  contradict 
universal  practice  and  are  considered  to  be  incompatible  with  international  law, 
including  Article  15  of  the  Chicago  Convention  of  1944.  In  2003,  these  payments 
were estimated to have cost European airlines a total of approximately €250 million. 
Russia  is  the  only  country  in  the  world  where  such  payments  have  to  be  made.  In 
addition,  these  payments  are  applied  neither  in  a  transparent  manner  nor  to  all 
Russia’s trading partners. The transit over Siberia is essential for EU airlines to gain 

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8 

Germany is Russia’s biggest single international aviation market. Lufthansa, Aeroflot, Pulkovo and Air 
Sibir operate each more than 100 weekly frequencies between the Russian Federation and Germany. 
Source: World Tourism Organisation (WTO), Tourism highlights 2003 

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commercially viable access to the growing aviation market in the Far East, including 
China. Far-East operations are essential for the economic profitability of EU airlines.  

Most EU cargo operators operating between Western Europe and the Far East avoid 
paying  overflight  payments  by  flying  around  Russian  territory.  Russian  cargo 
operators,  in  particular  Aeroflot,  have  therefore  a  significant  advantage  by  offering 
cargo services from Western Europe to the Far East directly via Russia. 

3.2.2.2.  Environmental and safety standards 

Russian  airlines  still  operate  a  significant  number  of  old  aircraft,  which  are  non- 
compliant with international and European environmental (aircraft noise) and safety 
standards. This remains an obstacle for improving EU-Russia aviation relations that 
needs to be addressed with the help of a comprehensive approach at EU level. 

4. 

THE  BENEFITS  OF  A  COMMUNITY  APPROACH  TO  EU-RUSSIA  AVIATION 
RELATIONS 

4.1. 

Overall economic benefits 

The  aviation  and  aeronautical  industries  of  the  EU  and  the  Russian  Federation  are 
fundamental components of our economic cooperation contributing to the mobility of 
our citizens and to industrial development. The importance of the Russian Federation 
and  EU  aviation  relations  increased  with  the  enlargement  of  the  EU  and  traffic 
between the markets of the EU-25 and the Russian Federation grew significantly. 

Over the past decade or so, the EU has developed a truly single European market for 
air transport. Consumers are also benefiting from more choice and lower air fares, in 
particular  with  the  emergence  of  new  low-cost  carriers.  The  EU  is  also  developing 
common standards for safety, security and air traffic management for the Single Sky.  

Nevertheless, the full potential of the internal market is unlikely to be achieved until 
the Community acts as a single coordinated entity in its aviation relations with third 
countries wherever such co-ordinated efforts can create added value in the interest of 
the European aviation industry and users. According to the results of a recent study 
carried  out  on  behalf  of  the  Commission,  a  fully  open  market  between  the  EU  and 
Russia could create benefits of up to €680 Million per annum for both sides, derived 
from job creation in the aviation industry, expenditure by tourists and travellers and 
from support services to the wider aviation industry. 

Closer aviation relations between the EU and Russia that would be derived from an 
aviation agreement might encourage the integration of Russian civil aviation with the 
existing network of global alliances. 

The  development  of  closer  ties  between  the  European  and  Russian  aerospace 
industries  and  the  strengthening  of  industrial  cooperation  have  been  identified  as 
among  the  priority  actions  within  the  roadmap  for  the  EU-Russia  Common 
Economic  Space.  The  reinforcement  of  this  cooperation  could  be  envisaged  in  the 
overall framework of negotiations on an aviation agreement between the Community 
and Russia and would also bring about new market opportunities resulting in major 
economic benefits.  

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The substantial savings (approximately $250 million per annum) that would be made 
by  European  airlines  following  the  phasing-out  of  Siberian  overflight  payments,  as 
well as the benefits of a more liberal environment in which to expand services to the 
Far East over Russia, should also be taken into account. 

The  opening  and  integration  of  markets  must  be  undertaken  in  a  balanced  manner 
that  takes  into  account  other  important  policy  objectives  and  mitigates  potential 
adverse  impacts,  be  it  in  competition,  environmental  protection  and  sustainable 
development or other areas. 

4.2. 

Traffic rights - creating new opportunities, opening the skies 

With  respect  to  traffic  rights,  as  described  above  the  current  environment  is  very 
restrictive  with  respect  to  designation,  frequencies,  capacity,  and  routes.  This  is 
hampering the expansion of air services in spite of growing demand. The agreement 
would therefore aim to allow for the gradual opening up of access to the two aviation 
markets  with  a  view  to  stimulating  investment  and  competition  and  improving 
services for passengers and cargo.  

The current market and regulatory conditions are such that the creation of an Open 
Aviation  Area,  whilst  remaining  a  longer  term  goal,  is  unlikely  to  be  a  realistic 
immediate objective. Such a goal might best be achieved in stages to allow a smooth 
and balanced transition. 

4.3. 

Ensuring compliance with Community law 

In accordance with the case law established by the European Court of Justice (ECJ) 
in its judgements of 5 November 2002, the existing bilateral air services agreements 
between the Member States and the Russian Federation must be deemed in breach of 
Community  law  to  the  extent  that  they  contain  designation  clauses  which 
discriminate against the carriers of other Member States or other clauses that impinge 
upon  exclusive  Community  competence.  Unless  these  agreements  are  promptly 
amended or replaced with agreements that conform to Community law, they must be 
denounced  by  the  Member  States  concerned.  This  situation  deprives  the  airlines 
operating  between  the  EU  and  the  Russian  Federation  from  the  indispensable  legal 
certainty and risks compromising the future development of our aviation relations. 

The  outcome  of  bilateral  negotiations  between  Member  States  and  the  Russian 
Federation have not yet yielded the necessary alignment of existing agreements with 
Community law. 

A key aim of a comprehensive air transport agreement between the Community and 
the Russian Federation would therefore be to resolve the outstanding legal issues in 
relation to existing bilateral agreements between Russia and the Member States. 

4.4. 

Siberian overflights – implementing the phase-out by 2013 

A comprehensive EC-Russia air transport agreement would provide for a transition 
period  for  the  modernisation  of  the  current  mechanism  of  payments  for  trans-
Siberian  overflights  by  2013  at  the  latest  and  ensure  that  charges  applied  after  the 

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end  of  the  transition  period  will  be  transparent,  cost-based  and  not  lead  to 
discrimination between airlines.  

In  1997,  the  Council  welcomed  the  initiative  of  the  Commission  to  start  direct 
consultations with the Russian Federation on this issue. 

The  Community  was  able  to  demonstrate  its  strength  in  negotiating  with  Russia, 
culminating in the commitment received from the Russian Government on 21st May 
2004  in  the  context  of  the  negotiations  on  Russia’s  accession  to  the  WTO  to 
eliminate  the  non-commercial  elements  of  Russia’s  current  system  of  payments  for 
Siberian  overflights  in  order  to  replace  it  with  a  cost-based,  transparent  and  non-
discriminatory system by 2013 at the latest. It was also agreed that the modalities for 
the gradual phasing out of the overflight payments over a transitional period leading 
to  2013  would  be  implemented  in  the  context  of  Russia-EC  negotiations  on  a 
comprehensive air transport agreement. This offers the best framework within which 
the  EC  and  Russia  can  agree  on  the  way  forward.  The  economic  benefits  for  EU 
airlines of eliminating these payments, in particular for the development of traffic to 
the lucrative and rapidly growing markets in the Far East, would be significant. 

Should  further  progress  on  this  issue  prove  difficult,  parallel  actions,  for  example 
within  the  framework  of  ICAO  and  application  of  Article  15  of  the  Chicago 
Convention, may be pursued. 

4.5. 

Allowing  closer  market  integration  –  safety,  security  and  environmental 
standards 

Against  the  background  of  the  liberalisation  of  Russia’s  domestic  aviation  market, 
the Russian government has shown an interest in pursuing a dialogue with the EC on 
regulatory matters. This might take the form of technical assistance in the regulatory 
field  based  on  the  EC’s  own  experience  of  a  liberalised  regulatory  framework,  or 
even  the  approximation  of  aviation  laws.  Such  an  exercise,  leading  to  increased 
regulatory  consistency  and  certainty,  would  clearly  be  in  the  interest  of  the 
Community and those parts of the industry wishing to expand their services in Russia 
and develop closer commercial ties with Russian companies.  

Ensuring  stringent  aviation  security  and  safety  provisions  would  be  of  major 
importance and ensure that market opening is accompanied by appropriate levels of 
integration  and  regulatory  convergence.  The  agreement  could  establish  close 
cooperation  to  ensure  that  the  highest  international  security  standards  can  be  met, 
fully taking into account the procedures, standards and developments applicable on 
or taking place in the territory of the Community. Joint mechanisms and procedures 
for cooperation in the security field could also be developed under the agreement. 

In the context of the new aviation relationship between the Russian Federation and 
the  EC  established  by  the  agreement,  it  would  be  possible  to  provide  assistance 
towards the harmonisation, where appropriate, of certification standards, with a view 
to  preparing  the  ground  for  closer  cooperation  between  the  Interstate  Aviation 
Committee  (IAC)  and  the  European  Aviation  Safety  Agency  (EASA).  A  working 
arrangement between the two bodies was agreed in July 2004. 

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With respect to environmental issues, the agreement could establish a framework for 
consultation  between  the  EC  and  the  Russian  Federation  to  inter  alia  facilitate  the 
implementation of improvements in environmental standards in Russia, notably with 
respect  to  aircraft  noise.  In  addition,  the  agreement  should  safeguard  the  flexibility 
for  the  EU  in  respect  of  measures  to  mitigate  the  impact  of  aviation  on  climate 
change and other environmental issues. 

4.6. 

Industrial cooperation - exploiting mutual strengths and needs in the aerospace 
industry 

The EU aerospace industry has a major interest in developing collaboration with its 
Russian  counterparts  and  research  centres.  A  variety  of  joint  projects,  including  in 
the fields of design, production, training and safety certification involving the main 
EU  and  Russian  companies  are  already  underway.  In  2003,  Airbus  opened  an 
engineering  centre  (ECAR  –  Engineering  Centre  Airbus  in  Russia)  in  cooperation 
with  the  Russian  company  Kaskol.  EU  industry  is  also  involved  in  Russian 
development projects of new, more environmentally friendly aircraft such as the TU 
204 and Russian Regional Jet (RRJ). The agreement could create a new framework 
for aviation relations between the Russian Federation and the EU under the umbrella 
of  which  industrial  cooperation  could  be  fostered.  Such  cooperation  would  support 
jointly identified aviation and research projects aimed at accompanying the on-going 
restructuring  and  modernisation  of  the  Russian  aerospace  industry.  This  might 
include  research  on,  and  development  of  common  standards  (safety,  security,  and 
the 
environmental  standards), 
modernisation  of 
traffic  management  system  and  airport 
infrastructure. 

training  programmes,  as  well  as  supporting 

the  Russian  air 

5. 

CONCLUSIONS 

This Communication presents the background and arguments substantiating the need 
for  a  comprehensive  air  transport  agreement  between  the  Community  and  the 
Russian  Federation,  which  would  allow  the  two  partners  to  establish  a  clear  and 
coherent framework in which to constructively develop their aviation relations in the 
coming years.  

Such  a  framework  would  inter  alia  aim  to  improve  market  opportunities  for  both 
sides,  ensure  compliance  with  Community  law,  implement  a  phase-out  of  trans-
Siberian  overflight  payments,  promote  the  approximation  of  aviation  laws  where 
appropriate,  establish  joint  mechanisms  for  co-operation  on  security,  safety  and 
environmental standards, and foster co-operation in the industrial field. It would also 
bring about significant economic benefits. 

The  current  situation  whereby  each  Member  State  separately,  and  not  the 
Community, negotiates air traffic rights and access conditions with third countries is 
a clear handicap. As long as Member States negotiate bilaterally with Russia it will 
be considerably more difficult to achieve the significant benefits in terms of market 
access and integration, which the Community would expect to achieve, together with 
offering  substantial  opportunities  for  cooperation  in  the  regulatory,  technical  and 
industrial fields. 

EN 

10 

   EN