Communication from the Commission - Developing a Community civil aviation policy towards Australia
Date: 2005-09-05
Institutions: European Commission
Subjects: Australia, European Union, civil aviation, common transport policy, cooperation policy, economic cooperation, international negotiations, market access

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 05.09.2005 
COM(2005) 408 final 

COMMUNICATION FROM THE COMMISSION 

Developing a Community civil aviation policy towards Australia 

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1. 

1.1 

INTRODUCTION 

Traditionally, international air transport is governed by bilateral agreements between 
judgements  of 
individual 
5 November 2002  of  the  European  Court  of  Justice  marked  the  start  of  an  external 
aviation policy at Community level. 

states.  However, 

so-called  “open 

skies” 

the 

As  outlined  in  the  Communication  of  the  European  Commission  “Developing  the 
agenda  for  the  Community’s  external  aviation  policy”1,  agreements  between  the 
European  Community  and  certain  third  countries  will  have  the  substantial  added 
value of creating new economic opportunities by opening up markets and promoting 
investment  opportunities.  Furthermore,  such  agreements  will  be  the  best  way  to 
ensure fair competition by promoting regulatory convergence. 

Therefore,  the  European  Commission  has  proposed  to  launch  targeted  negotiations 
seeking  to  achieve  comprehensive  aviation  agreements  in  the  major  regions  of  the 
world, with the aim of strengthening the prospects for promoting European industry 
and ensuring fair competition, while at the same time seeking to reform international 
civil aviation. 

1.2 

In  October  2003  Australia  requested  to  start  negotiations  on  an  agreement  on  the 
liberalisation  of  air  transport  with  the  European  Community.  With  its  market-
oriented economic and transport policy and high regulatory standards, Australia is an 
obvious  and  promising  candidate  for  a  new-generation  of  air  transport  agreement 
with the European Community.  

This  is  why  Australia  was  identified  in  the  Commission’s  Communication 
“Developing the agenda for the Community’s external aviation policy” as a possible 
key target country for a Community-wide agreement. In its Conclusions on external 
aviation  relations,  the  Council  has  explicitly  taken  note  of  Australia  as  a  potential 
candidate for a future request for comprehensive negotiating mandates.2 

1.3 

Furthermore,  Australia  has  demonstrated 
the 
framework  for  air  transport  jointly  with  the  European  Community  by  initialling  an 
agreement  on  certain  aspects  of  air  services  with  the  European  Community  on 
7 April 2005. 

its  commitment 

to  reforming 

An  agreement  on  the  liberalisation  of  air  transport  with  Australia  will  further 
strengthen the good relations with Australia that shares the Community’s objectives 
of  reforming  the  framework  for  international  air  transport.  It  will  bring  economic 
benefits  to  air  carriers,  airports,  passengers,  shippers,  the  tourism  industry  and  the 
wider  economy  both  within  the  European  Union  and  in  Australia.  In  addition  and 
equally  importantly,  it  will  be  a  milestone  on  the  path  towards  an  international 
reform of the regulatory framework governing the air transport sector. 

1 
2 

COM(2005) 79 final, dated 11.3.2005. 
Council Conclusions of 27 June 2005 on developing the agenda for the Community’s external aviation 
policy. 

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1.4 

With  this  Communication,  the  Commission  therefore  recommends  that  the  Council 
authorises  the  Commission  to  negotiate  a  comprehensive  agreement  on  an  Open 
Aviation  Area  with  Australia  combining  market  opening  with  a  parallel  process  of 
regulatory co-operation and/or convergence notably in priority areas such as aviation 
safety,  security,  environmental  protection,  protection  of  passengers  and  application 
of competition rules ensuring a level playing field and fair and equal conditions for 
competition. 

Positive  exploratory  contacts  between  the  Department  of  Transport  and  Regional 
Services  of  Australia  and  the  services  of  the  European  Commission  have  been 
developed over the past few years, which may serve as a good basis for entering into 
formal negotiations with Australia. 

2. 

THE  EXISTING  REGULATORY  FRAMEWORK  FOR  AIR  SERVICES  BETWEEN 
THE EUROPEAN COMMUNITY AND AUSTRALIA 

Bilateral air services agreements between EU Member States and Australia 

2.1 

Currently, air transport between Australia and the EU is governed by 15 bilateral air 
services  agreements.3  There  is  at  present  no  legal  basis  for  air  services  between 
Australia and the other 10 EU Member States. 

2.2 

The  existing  regulatory  framework  for  air  services  between  the  Community  and 
Australia  does  not  allow  airlines,  passengers  and  shippers  to  take  full  advantage  of 
the benefits of free markets. The existing bilateral air services agreements establish 
an  imbalanced  framework  for  air  services  between  the  EU  and  Australia  as  not  all 
agreements  are  equally  liberal  with  regard  to  freedoms  and  capacities  available. 
These  differences  in  the  Member  States’  bilateral  air  services  agreements  with 
Australia lead to inequalities in the opportunities available to Community air carriers. 

Like  most  bilateral  air  services  agreements,  the  existing  bilateral  air  services 
agreements between EU Member States and Australia contain nationality restrictions 
that  have  been  found  illegal  by  the  European  Court  of  Justice.  In  April  2005,  the 
European Commission reached an agreement with the Australian aviation authorities 
on  certain  aspects  of  air  services  (“Horizontal  Agreement”)4  that  replaces  these 
nationality clauses with a Community clause. This agreement allows all EU airlines 
in principle, subject to traffic rights available, to operate flights to Australia from any 
EU  Member  State  where  they  are  established.  Due  to  the  above-mentioned 
imbalances,  it  was  necessary  to  include  a  “no-circumvention”  clause  in  the  recent 
“Horizontal Agreement” with Australia in order to avoid possible circumvention of 
the existing different bilateral restrictions on traffic rights. 

3 

4 

Austria,  Czech  Republic,  Denmark,  Finland,  France,  Germany,  Greece,  Ireland,  Italy,  Luxembourg, 
Malta, the Netherlands, Poland, Sweden and the United Kingdom have concluded bilateral air services 
agreements with Australia.  
Proposal  for  a  Council  Decision  on  the  signature  and  the  provisional  application  of  the  Agreement 
between  the  European  Community  and  the  Commonwealth  of  Australia  on  certain  aspects  of  air 
services, COM(2005) 264. 

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The regulatory framework for air transport in Australia 

2.3 

2.4 

In recent years, Australia has introduced major changes to its aviation policy in order 
to  promote  travel,  trade  and  tourism.  The  aviation  policy  that  Australia  has  been 
pursuing  includes  liberalising  international  air  services  agreements,  liberalising 
airline ownership and liberalising international aviation multilaterally.  

Traffic  rights  that  are  available  to  Australian  air  carriers  under  the  bilateral  air 
services  agreements  are  allocated  to  individual  air  carriers  by  the  independent 
International Air Services Commission. The objective of allocation of traffic rights is 
to promote economic efficiency through competition in the provision of international 
air services.5  

2.5 

Australia  has  concluded  “open  skies”  agreements  with  unlimited  traffic  rights  for 
cargo-only flights with 22 countries.  

Between Australia and New Zealand, a Single Aviation Market (SAM) was agreed in 
1996  and  completed  in  2002.  Following  the  establishment  of  the  Single  Aviation 
Market,  the  number  of  scheduled  passenger  airlines  between  Australia  and  New 
Zealand has increased to 12 carriers with significant increases in passenger traffic as 
a  result.  The  Single  Aviation  Market  gives  Australian  carriers  access  to  domestic 
flights in New Zealand and vice versa.  

Within  the  SAM,  carriers  of  both  countries  may,  provided  that  they  meet  for 
operating within the domestic market of either Australia or New Zealand and be at 
least  50%  owned  and  be  controlled  by  Australian  and/or  New  Zealand  nationals, 
operate any capacity, including cabotage, as it decides without any restrictions. The 
aviation  safety  authorities  of  the  two  countries  have  also  agreed  to  mutual 
recognition of all aviation-related certification. 

2.6 

Following  the  deregulation  of  the  Australian  market  in  1990,  there  are  no  foreign 
ownership  limitations  for  domestic  airlines  except  with  regard  to  Qantas.  Foreign 
persons,  including  foreign  airlines,  are  allowed  to  hold  up  to  100%  equity  in  an 
Australian  domestic  airline.  However,  foreign  ownership  in  international  airlines  is 
limited  to  49%  to  ensure  that  other  countries  will  accept  airline  designation  since 
most  bilateral  air  services  agreements  are  still  based  on  the  traditional  national 
ownership requirements.6 Specific ownership and control rules are set for Australia’s 
main international air carrier in the Qantas Sale Act of 1992 which limits ownership 
by  a  single  foreign  investor  to  25%.  However,  the  Australian  Government  is 
currently considering a removal of the foreign ownership restrictions for Qantas. 

2.7 

Anti-competitive  behaviour  in  the  air  transport  sector  is  prohibited  by  the  Trade 
Practices  Act  which  is  enforced  by  the  Australian  Competition  and  Consumer 
Commission. 

The Civil Aviation Safety Authority is responsible for aircraft certification, licensing 
and safety oversight including inspections of foreign aircraft. Air carriers registered 
in Australia have an excellent safety record. 

5 
6 

International Air Services Commission Act 1992, Section 3. 
Air Navigation Act 1920, Section 11A. 

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3. 

3.1 

3.2 

3.3 

4. 

4.1 

FURTHER  STRENGTHENING  RELATIONS  BETWEEN  THE  EUROPEAN  UNION  AND 
AUSTRALIA 

Australia is a close political partner of the European Union. The relationship between 
the  European  Union  and  Australia  is  characterised  by  common  values  and 
convergent global objectives.  

The  European  Union  and  Australia  have  sealed  their  bilateral  co-operation  with  a 
Joint  Declaration  in  1997,  based  on  the  common  wish  of  promoting  a  sound 
development of the world economy based on free and open market principles. 

In  their  economic  relationship,  the  European  Union  is  Australia’s  largest  trading 
partner.  Exports  from  the  European  Union  to  Australia  have  steadily  increased  and 
reached  a  value  of  €  18  billion  in  2003.  Imports  to  the  European  Union  from 
Australia  account  for  €  9  billion  in  2003.  Furthermore,  the  European  Union  is  the 
largest trading partner in services for Australia. Trade in services between Australia 
and the European Union continues to grow and in 2003 trade in services accounted 
for  nearly  40%  of  overall  trade  with  a  substantial  share  provided  by  transport 
services.  The  European  Union  is  also  the  most  important  source  of  foreign 
investment in Australia and the second major destination for Australian investments 
abroad. 

The  Agenda  for  Co-operation  between  the  European  Union  and  Australia  as 
reviewed  in  2004  includes  a  close  co-operation  between  the  two  partners  aimed  to 
promote  liberalisation  of  air  transport  in  the  different  international  fora  concerned. 
Furthermore, in line with the shared commitment to aviation liberalisation, bilateral 
discussions in the field of air transport are welcomed.  

In  February  2005,  the  Australian  government  confirmed  its  interest  in  an  aviation 
agreement  with  the  Community  at  the  EU-Australia  ministerial  troika  meeting.  An 
aviation  agreement  would  contribute  significantly  to  further  strengthening  bilateral 
relations between the European Union and Australia. 

ECONOMIC  BENEFITS  OF  A  COMPREHENSIVE  AIR  TRANSPORT  AGREEMENT 
BETWEEN THE EUROPEAN COMMUNITY AND AUSTRALIA 

Around  one  million  passengers  are  carried  annually  on  direct  flights  between  the 
European Union and Australia. Direct passenger flights between the European Union 
and Australia are currently operated by Qantas and British Airways in a Joint Service 
Agreement  and  by  Austrian  Airlines  and  by  Virgin  Atlantic.  However,  due  to  the 
long distance, flights between Europe and Australia require one intermediate stop. As 
a  consequence,  indirect  routes  with  connecting  flights  from  South-East  Asia  or  the 
Gulf  region  are  a  close  substitute  for  direct  one-stop  flights  between  the  European 
Union and Australia.  

About  50%  of  all  passengers  flying  between  the  EU  and  Australia  are  carried  by 
Asian or Middle Eastern air carriers on indirect routes between the European Union 
and Australia.7 The overall annual market size of air services between the European 

7 

Source: Australian Competition and Consumer Commission (2004). 

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4.2 

4.3 

4.4 

4.5 

Union and Australia is therefore close to 2 million passengers. This makes Australia 
one of the largest long-distance air transport markets for the European Union. 

Most  flights  between  Europe  and  Australia  are  operated  on  a  one-stop  basis  via 
intermediate points in Asia. Since the economic viability of such operations depends 
on  the  possibility  of  carrying  passengers  between  the  intermediate  point  and 
Australia,  fifth  freedom  rights8  between  Australia  and  intermediate  points  are  of 
substantial economic value for EU air carriers. The EU air carriers operating flights 
to  and  from  Australia  carry  a  substantial  share  of  passengers  and  freight  between 
Australia on the one side and Singapore, Thailand, Malaysia and Hong Kong on the 
other. 

Benefits and added value of a Community approach 

Even  if  the  immediate  economic  impact  of  a  liberalisation  of  air  transport  between 
the European Community and Australia might be moderate for the EU economy in 
the short term, given the limited share of  direct flights  in the EU-Australia market, 
the lifting of restrictions could enhance market opportunities for EU air carriers and 
increase  the  importance  of  direct  flights  in  the  total  EU-Australia  market.  The 
removal of all restrictions between the EU and Australia would increase the ability of 
EU  air  carriers  to  compete  with  carriers  from  the  Middle  or  Far  East  which  have 
captured  a  substantial  share  of  the  EU-Australia  market.  This  would  give  EU 
passengers  an  even  wider  choice  of  flights  to  Australia.  It  would  allow  EU  air 
carriers to increase their market share on an important long-haul market. 

An increase in (direct) air services would enhance trade and tourism flows between 
the EU and Australia and, hence, bring wider economic benefits to the EU economy. 
Airports and aviation-related industries as well as the aircraft manufacturing industry 
would  also  benefit  from  a  further  increase  in  air  services  between  the  EU  and 
Australia. 

With  its  modern  regulatory  framework  and  its  market  oriented  economic  and 
transport policy, Australia is an obvious candidate for deepening of aviation relations 
with the Community in an Open Aviation Area – both in terms of market access and 
in  terms  of  regulatory  co-operation  and  convergence.  Enhanced  regulatory  co-
operation  between  the  EU  and  Australia  would  facilitate  further  the  air  services 
between the EU and Australia. 

However, even more important than the short-term economic impact is the medium-
term economic impact on other air transport markets. The economic benefits of open 
international  aviation  markets  have  been  clearly  identified  in  a  study  conducted  on 
behalf  of  the  European  Commission  on  the  economic  impact  of  an  EU-US  Open 
Aviation  Area.9  Released  from  the  existing  restrictions  on  the  number  of  weekly 
flights  and  flight  routes,  air  traffic  is  likely  to  increase.  With  open  market  access, 
airlines  will  be  able  to  take  advantage  of  new  market  opportunities  and  offer  air 

8 

9 

Fifth-freedom rights are the rights of an air carrier to carry passengers and freight from a country to a 
third country on services starting in its home country, e.g. the right of an UK carrier to carry passengers 
between Singapore and Australia on a flight starting in the UK. 
The  Brattle  Group,  The  Economic  Impact  of  an  EU-US  Open  Aviation  Area,  Study  prepared  for  the 
European Commission, December 2002. 

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services  on  the  routes  where  their  customers  demand  it.  Cross-border  investment 
flows will bring further efficiency gains.  

A  full  liberalisation  of  air  transport  with  Australia  can  only  be  achieved  on  a 
Community level. Since EU law sets the ownership requirements for EU carriers, a 
reciprocal liberalisation of ownership and control requirements needs to be done by 
the Community.  

The  wider  impact  on  air  transport  relations  with  other  third  countries  would  bring 
significant economic benefits for the European economy. Due to the Single Aviation 
Market between Australia and New Zealand and the high level of integration already 
achieved  between  these  two  markets,  the  benefits  of  an  Open  Aviation  Area  with 
Australia would be reinforced as the combined market would be larger. 

As a consequence of open aviation markets: 

– 

– 

– 

– 

airlines would further increase their efficiency and improve their international 
competitiveness, 

passengers and shippers would benefit from more choice, 

airports,  aviation-related  services  and  the  aircraft  manufacturing  industry 
would benefit from an increase in air transport, 

the  increase  in  traffic  would  facilitate  a  further  increase  in  trade  and  tourism 
flows. 

The  clear  potential  benefits  of  an  Open  Aviation  Area  Agreement  with  Australia 
have  been  confirmed  in  an  impact  assessment  study  carried  out  by  independent 
consultants. While the short-term economic benefits may be relatively limited due to 
the  absence  of  non-stop  flights  between  the  Community  and  Australia  and  the 
already existing degree of market access, the economic impact of an agreement with 
Australia would nonetheless be considerable. The recent study has confirmed that the 
regulatory  and  policy  framework  for  air  transport  in  Australia  would  allow  the 
Community  to  achieve  a  model  agreement  with  Australia  which  would  result  in 
greater levels of regulatory convergence and new opportunities for EU industry and 
users. An OAA with Australia could increase the competitiveness of EU airlines vis-
à-vis competitors from the Middle and Far East in the EU-Australia market. It could 
lead  to  an  increase  in  direct  flights  between  the  EU  and  Australia  and  to  a  better 
distribution of air traffic which today is highly concentrated on London. It could lead 
to  more  one-stop  services  between  EU  cities  and  Australian  destinations,  thereby 
increasing the convenience for EU passengers. Furthermore, the study underlined the 
substantial economic benefits in the longer term for the European airline industry, air 
transport  users  and  other  economic  actors,  taking  into  account  the  implications  for 
relations with other countries. 

CONCLUSIONS:  SUBSTANTIAL  ADDED  VALUE  OF  A  FUTURE  EU-AUSTRALIA  AIR 
TRANSPORT AGREEMENT  

A  modernised  framework  for  air  transport  between  the  EU  and  Australia  offers 
significant  new  opportunities  for  strengthening  air  transport  in  a  competitive  and 

4.6 

5. 

5.1 

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5.2 

level  playing  field.  In  addition,  it  would  further  strengthen  the  already  excellent 
commercial and political relations between the EU and Australia. 

The model of an air transport partnership between the European Union and Australia 
is inspired by the ambition to take forward an agenda for reform at the international 
level.  The  resulting  agreement  on  the  liberalisation  of  air  transport  between  the 
European Community and Australia would replace the existing bilateral air services 
agreements  between  Australia  and  EU  Member  States  and  establish  a  modern 
framework for air services between the EU and Australia, with market access as open 
as  possible  and  regulatory  standards  as  high  as  possible.  It  could  thereby  be  the 
model for an extended air transport partnership with other third countries. 

The negotiations of an Open Aviation Area agreement with Australia would aim at 
an  opening  of  market  access  and  an  opening  of  investment  opportunities.  The 
opening of market access can not be limited to third- and fourth-freedom rights but 
need  to  include  fifth-freedom  rights.10  Australia  can  not  be  served  with  non-stop 
flights  from  Europe.  Therefore,  air  services  between  the  EU  and  Australia  are 
operated on a one-stop basis via intermediate points which are significant markets in 
their  own  right,  e.g.  Singapore,  Thailand  or  Hong  Kong.  It  would  not  be 
economically  viable  to  operate  the  air  service  between  the  intermediate  points  and 
Australia  without  the  respective  traffic  rights.  Therefore,  fifth-freedom  rights  via 
such intermediate points are essential in order to secure the potential benefits of the 
agreement. 

The  reciprocal  opening  of  market  access  with  Australia  has  already  been 
implemented by some Member States. However, some Member States have not yet 
reached an advanced degree of market access in their relations with Australia. This 
imbalanced framework has led to inequalities in the opportunities of Community air 
carriers which are not consistent with the equal opportunities for all Community air 
carriers  in  the  Single  Market.  A  comprehensive  air  transport  agreement  on  a 
Community  level  would  make  the  Community’s  aviation  relations  with  Australia 
coherent  and  would  grant  equal  rights  and  opportunities  for  all  Community  air 
carriers  for  air  services  to  Australia.  Negotiations  on  a  Community  level  could 
achieve  full  liberalisation.  In  recent  bilateral  negotiations  with  Member  States, 
Australia  indicated  that  a  full  liberalisation  of  market  access,  including  seventh-
freedom  rights  and  eighth-freedom  rights,  could  only  be  implemented  with  the 
Community and not with individual Member States.11 

Furthermore,  it  would  create  new  market  opportunities  for  air  carriers  in  those 
Member  States  that  currently  do  not  have  any  rights  concerning  air  transport  from 
and  to  Australia.  An  air  transport  agreement  on  Community  level  would  also  give 
smaller  carriers  the  possibility  to  extend  their  network  to  Australia.  While  traffic 
demand  between  several  Member  States  and  Australia  would  not  necessarily  make 

10 

11 

Third-freedom is the right to carry passengers and freight from the EU to Australia. Fourth-freedom is 
the  right  to  carry passengers  and freight  from  Australia  to  the  EU.  Fifth-freedom  is  the right  to  carry 
passengers and freight from an intermediate point to Australia on a service starting in the EU. 
Seventh-freedom  is  the  right  to  carry  passengers and  freight  between  two  countries  outside  the  home 
country of the air carrier, e.g. an EU air carrier operating flights between Australia and New Zealand. 
Eight-freedom is the right to carry passengers and freight on domestic routes in a third country. 

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direct  flights  commercially  viable,  air  carriers  could  pursue  commercial  benefits 
through code-sharing arrangements to and from Australia. 

An EU-Australia agreement would allow the European airline industry to gain from 
more  open  market  access  to  and  from  Australia.  The  removal  of  the  existing 
restrictions would help the European airline industry to compete with the air carriers 
from the Middle and Far East which have captured a substantial market share on EU-
Australia  flights.  The  replacement  of  indirect  flights  via  the  Gulf  region  or  South-
East Asia with additional direct flights from the EU would benefit the EU airports. 
An  EU-Australia  OAA  agreement  would  allow  the  European  airline  industry  to 
invest  in  Australia  and  to  benefit  from  capital  originating  from  Australia.  It  would 
allow the European freight carriers to establish international freight lanes in the Asia-
Pacific region and thereby to increase the efficiency of their operations and to enable 
services  according  to  the  needs  of  their  global  customers  and  no  longer  be 
constrained by the need to combine rights under bilateral agreements. Open markets 
and  the  resulting  increase  in  competition  on  routes  between  Europe  and  Australia 
would bring additional benefits for European passengers and shippers.  

5.3 

Open  aviation  markets  need  a  framework  that  ensures  fair  competition  and  high 
standards of safety, security and environmental protection. Therefore, an agreement 
would equally need to maintain and reinforce high standards of safety, security and 
environmental protection for air services between the European Union and Australia. 
It would establish a level playing field to avoid distortions of competition.  

With  respect  to  environmental  issues,  the  agreement  must  be  consistent  with  the 
EU’s  commitment  to  sustainable  development.  Apart  from  the  economic  benefits 
highlighted above, the expected growth in air traffic has also unwanted side-effects, 
notably on air quality and noise levels around airports and through the contribution to 
global climate change. It is important that the agreement does not restrict the EU’s 
ability to apply regulatory or economic instruments to mitigate these adverse effects. 

Safeguarding  fair  competition  is  another  key  issue  in  open  aviation  markets.  By 
achieving  greater  levels  of  regulatory  convergence,  a  comprehensive  air  transport 
agreement between the Community and Australia would ensure a competitive level 
playing field to avoid distortions of competition. 

Australia  is  well  prepared  for  a  high  level  of  regulatory  convergence  with  the 
Community and the prospects for a high level of regulatory convergence between the 
Community and Australia are excellent.  

Regulatory  convergence  can  only  be  achieved  at  Community  level.  Bilateral 
agreements fall short of ensuring such an adequate regulatory co-operation. An EU-
Australia  agreement  should  establish  co-operation  mechanisms  to  ensure  that  the 
rules of the agreement are respected and further developed. 

This  partnership  can  be  progressively  developed  towards  an  Open  Aviation  Area 
between the European Community and Australia. Exploratory talks have shown that 
Australia  shares  the  ambitions  of  the  Community  to  establish  a  modernised 
framework  for  international  air  services,  free  of  existing  restrictions  and  with  the 
opportunity to provide services globally. The result of the proposed new partnership 

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would  send  a  clear  signal  to  other  third  countries  to  join  the  trend  towards  a  more 
flexible international framework for air transport. 

5.4 

The economic benefits of an air transport agreement with Australia would be further 
increased  by  similar  agreements  with  countries  in  Asia  that  serve  as  main 
intermediate  points.  Hence,  the  new  partnership  between  the  European  Union  and 
Australia should be open for other countries that might wish to join. 

5.5 

The  civil  aviation  sector  offers  significant  new  opportunities  for  strengthening 
transport sector co-operation and mutual benefits of Australia and the EU. 

In  light  of  the  above,  the  European  Commission  therefore  recommends  that  the 
Council authorises the Commission to open negotiations with Australia with a view 
to concluding a comprehensive air transport agreement. 

5.6 

The  Commission  will  work  closely  together  with  Member  States  and  all  relevant 
stakeholders  in  further  developing  and  achieving  the  objectives  set  out  in  the 
negotiating directives. 

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