Communication from the Commission - Developing a Community civil aviation policy towards New Zealand
Date: 2005-09-12
Institutions: European Commission
Subjects: European Union, New Zealand, civil aviation, common transport policy, cooperation policy, economic cooperation, international negotiations, market access

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 12.9.2005 
COM(2005) 407 final 

COMMUNICATION FROM THE COMMISSION 

Developing a Community civil aviation policy towards New Zealand 

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COMMUNICATION FROM THE COMMISSION 

Developing a Community civil aviation policy towards New Zealand 

1. 

1.1 

INTRODUCTION  

Traditionally,  international  air  transport  is  governed  by  bilateral  agreements 
between individual  states.  However,  the  so-called  “open  skies”  judgements  of 
5 November 2002  of  the  European  Court  of  Justice  marked  the  start  of  an  external 
aviation policy at Community level. 

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, New Zealand 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, New Zealand 
is  an  obvious  and  promising  candidate  for  a  new-generation  of  air  transport 
agreement with the European Community.  

This  is  why  New  Zealand  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  New  Zealand  as  a 
potential candidate for a future request for comprehensive negotiating mandates. 2 

1.3 

Furthermore,  New  Zealand  has  demonstrated  its  commitment  to  reforming  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 
14 March 2005. 

An  agreement  on  the  liberalisation  of  air  transport  with  New  Zealand  will  further 
strengthen  the  good  relations  with  New  Zealand  that  shares  the  Community’s 

1 
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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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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  New  Zealand.  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. 

1.4 

With  this  Communication,  the  Commission  therefore  recommends  that  the  Council 
authorises  the  Commission  to  negotiate  a  comprehensive  agreement  on  an  Open 
Aviation Area with New Zealand 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  and  application  of  competition 
rules ensuring a level playing field and fair and equal conditions for competition. 

Positive relations between the Ministry of Transport of New Zealand and the services 
of the European Commission have been developed during the horizontal negotiations 
and  exploratory  contacts,  which  may  serve  as  a  good  basis  for  entering  into  more 
ambitious air transport negotiations with New Zealand. 

2. 

THE  EXISTING  REGULATORY  FRAMEWORK  FOR  AIR  SERVICES  BETWEEN  THE 
EUROPEAN COMMUNITY AND NEW ZEALAND 

Bilateral air services agreements between EU Member States and New Zealand 

2.1 

Currently,  air  services  between  the  EU  and  New  Zealand  are  governed  by  the 
bilateral air services agreements between New Zealand and 12 EU Member States.3 
There is no legal basis for air services between the other 13 Member States and New 
Zealand. 

The existing regulatory framework for air services between the Community and New 
Zealand 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 New Zealand as not all 
agreements  are  equally  liberal  with  regard  to  freedoms,  capacities  and  routes 
available. These differences in the Member States’ bilateral air services agreements 
with  New  Zealand  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 New Zealand contained restrictions that 
have  been  found  illegal  by  the  European  Court  of  Justice.  In  March  2005,  the 
European  Commission  reached  an  agreement  with  the  New  Zealand  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  New 

Austria,  Belgium,  Denmark,  France,  Germany,  Ireland,  Italy,  Luxembourg,  the  Netherlands,  Spain, 
Sweden and the United Kingdom. 
Proposal  for  a  Council  Decision  on  the  signature  and  the  provisional  application  of  the  Agreement 
between 
the  European  Community  and  New  Zealand  on  certain  aspects  of  air  services,  
COM (2005) 267.  

2.2 

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Zealand from any EU Member State where they are established. Due to the above-
mentioned  different  degrees  of  market  opening,  it  was  necessary  to  include  a  “no-
circumvention”  clause  in  the  recent  “Horizontal  Agreement”  with  New  Zealand  in 
order to prevent possible circumvention of the existing different bilateral restrictions 
on traffic rights. 

The regulatory framework for air transport in New Zealand 

2.3 

New  Zealand  is  a  pioneer  in  air  transport  liberalisation.  As  early  as  1985,  New 
Zealand  developed  a  new  policy  in  international  aviation  based  on  the  perceived 
benefits  for  the  economy,  including  trade  and  tourism,  rather  than  for  the  national 
airline. 

The New Zealand aviation policy is based on the assumption that the maximisation 
of  economic  benefits  will  best  be  achieved  by  encouraging  the  liberalisation  of  air 
services  and  the  government  will  examine  ways  to  reduce  barriers  that  inhibit 
competition and freer access to markets.  

In 1985, New Zealand was party to only 12 bilateral air services agreements. After 
1985, the number of airlines serving New Zealand and the number of tourist arrivals 
increased  considerably.  From  the  early  1990s,  New  Zealand  actively  sought 
opportunities  to  negotiate  open  skies  agreements,  including  with  the  United  States 
and a number of Member States. 

New Zealand and the EU share a common position on many ‘doing business’ matters 
related  to  air  transport  in  the  WTO  framework.  New  Zealand  supported  the  EU 
position on environmental issues in the International Civil Aviation Organisation. 

2.4 

New  Zealand’s  aviation  policy  today  is  characterised  by  a  very  modern  and  open 
regulatory framework: 

•  Since  1986,  New  Zealand  has  allowed  100%  foreign  ownership  of  domestic 

airlines.  

•  For domestic flights, safety certification is the only requirement for market entry.  

•  New Zealand has concluded “open skies” agreements with several countries in all 

geographic regions.  

•  In  bilateral  negotiations,  New  Zealand  usually  seeks  liberalisation  of  the 
designation  provisions  to  “principal  place  of  business”  instead  of  the  traditional 
“national ownership” provision. 

2.5 

On 27 May 2005, New Zealand and the United Kingdom signed a Memorandum of 
Understanding and an Air Service Agreement. 

The new UK-New Zealand agreement incorporates the relevant Community standard 
clauses agreed through the EC/New Zealand Horizontal Agreement and provides for 
the following key elements: 

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•  Unrestricted  5th,  6th,  7th,  8th  and  9th  freedom  rights  for  UK-designated  airlines; 
similar for New Zealand-designated airlines albeit with limits on 5th freedom and 
7th freedom passengers on London-US routes; 

•  liberal code sharing and leasing rights; 

•  liberal charter arrangements; 

•  liberalised tariffs arrangements; 

2.6 

2.7 

2.8 

•  provisions on fair competition and state aids and ground-handling. 

The  Ministry  of  Transport  is  the  licensing  authority  for  airlines  in  New  Zealand. 
International airlines serving New Zealand on a scheduled basis are required to hold 
an  International  Air  Service  Licence.  Licensing  provides  the  mechanism  for 
authorising  and  monitoring  the  exercise  of  air  traffic  rights  exchanged  in  bilateral 
negotiations.  For  New  Zealand  airlines,  licensing  is  also  the  method  for  allocating 
New Zealand's air traffic rights that, under many Air Services Agreements (ASAs), 
are still restricted. 

The Civil Aviation Authority of New Zealand was established 1992 under the Civil 
Aviation Act. Its prime function is undertaking activities that promote civil aviation 
safety  and  security  at  reasonable  cost.  The  responsibilities  include  establishing 
aviation  safety  and  security  standards,  monitoring  of  the  safety  and  security 
standards,  investigating  accidents  and  incidents.  The  Director  of  Civil  Aviation  is 
responsible for the granting of certificates and other aviation documents. 

In  2001,  New  Zealand  signed  a  multilateral  "open  skies"  agreement,  known  as  the 
Multilateral  Agreement  for  Liberalisation  of  Air  Transportation  (MALIAT),  along 
with Brunei, Chile, Singapore and the United States and others. New Zealand is the 
depositary state for the MALIAT Agreement.5 The key features of MALIAT are an 
open route schedule, open traffic rights and open capacity. The MALIAT signatories 
have  granted  each  other  unlimited  traffic  rights  between  each  other  under  third, 
fourth,  fifth  and  sixth  freedoms  as  well  as  unlimited  seventh  freedom  traffic  rights 
for  cargo-only  flights.  National  majority  ownership  is  no  requirement  for  being 
designated between MALIAT countries. New Zealand went even further and signed 
–  together  with  Chile,  Singapore  and  Brunei  –  the  so-called  MALIAT  Protocol.6 
Further to the freedoms granted in MALIAT, the MALIAT Protocol allows seventh 
freedom  rights  for  passenger  flights  and  cabotage  rights  when  continuing  an 
international flight.  

2.9 

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 

5 
6 

Other signatories of MALIAT are the United States, Brunei, Peru, Samoa and Tonga. 
The  MALIAT  Protocol  entered  into  force  in  Singapore,  New  Zealand  and  Brunei  in  December  2001 
and in Chile in December 2003. 

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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. 

FURTHER STRENGTHENING RELATIONS BETWEEN THE EUROPEAN UNION AND NEW 
ZEALAND 

The relationship between the European Union and New Zealand was given a formal 
framework  in  May  1999,  when  the  Joint  Declaration  on  Relations  between  the 
European  Union  and  New  Zealand  was  signed.  The  common  goal  in  economic 
matters  is  to  promote  the  development  of  an  open  free  markets  economies.  New 
Zealand and the EU have similar views on many international and economic policy 
issues. 

In commercial terms, the European Union is the third largest export destination for 
New Zealand after Australia and Japan (€ 2.7 billion) and its second largest supplier 
of  imports  (€  2.4  billion).7  Overall,  the  European  Union  is  New  Zealand’s  second 
largest trade partner in goods. Trade in services is growing increasingly between the 
European  Union  and  New  Zealand.  The  European  Union  is  also  an  important 
destination  for  investments  from  New  Zealand  and  a  major  source  of  foreign 
investment in New Zealand.  

Due  to  the  geographical  distance,  air  transport  is  essential  for  the  commercial  and 
social  relations  between  New  Zealand  and  the  EU.  Air  transport  has  been 
consistently  on  the  agenda  of  high-level  meetings  and  action  plans  between  New 
Zealand  and  the  EU,  most  recently  on  the  EU-New  Zealand  ministerial  troika  in 
February 2005.  

New  Zealand  has  formally  requested  to  start  negotiations  on  an  agreement  on  the 
liberalisation of air transport with the European Community. Opening negotiations in 
the  field  of  air  transport  will  further  strengthen  the  economic  and  political  links 
between the EU and New Zealand.  

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

Currently,  only  Air  New  Zealand  is  operating  direct  passenger  flights  between  the 
Community  and  New  Zealand  (via  Los  Angeles  to  London).  A  number  of 
Community carriers offer indirect flights to New Zealand on a code-share basis and 
some Community carriers also offer long-haul cargo services to New Zealand. New 
Zealand has a growing number of visitor arrivals from the EU, particularly a strong 

3. 

3.1 

3.2 

3.3 

4. 

4.1 

7 

Eurostat, Statistical Yearbook External and intra-EU Trade 2003 Edition. 

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4.2 

4.3 

4.4 

growth in tourist arrivals. The number of people travelling between New Zealand and 
the  EU  has  increased  from  540,000  in  2002  to  640,000  in  2004.  Due  to  the  long 
distance, there is a wide choice of indirect flights via the Asia/Pacific region as well 
as via the United States. 

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 New Zealand might be moderate for the EU economy 
in  the  short  term,  given  the  limited  share  of  direct  flights  in  the  EU-New  Zealand 
market,  the  lifting  of  restrictions  could  enhance  market  opportunities  for  EU  air 
carriers  and  increase  the  importance  of  direct  flights  in  the  total  EU-New  Zealand 
market.  

An increase in (direct) air services would enhance trade and tourism flows between 
the  EU  and  New  Zealand  and,  hence,  bring  wider  economic  benefits  to  the  EU 
economy.  

With  its  high  regulatory  standards  and  its  market  oriented  economic  and  transport 
policy,  New  Zealand  is  an  obvious  candidate  for  a  Community-level  open  aviation 
area agreement. An air transport agreement between the EU and New Zealand could 
set a model for liberalisation of air transport markets with other third countries. New 
Zealand  is  a  key  driver  of  aviation  liberalisation  and  market  integration  in  the 
Asia/Pacific  region.  The  wider  impact  on  air  transport  relations  with  other  third 
countries would bring significant economic benefits for the European economy 

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.8  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 
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  New  Zealand  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 New Zealand and Australia and the high level of integration already 
achieved  between  these  two  markets,  the  benefits  of  an  Open  Aviation  Area  with 
New Zealand would be reinforced as the combined market would be larger. 

8 

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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4.6 

5. 

5.1 

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 New Zealand 
have  been  confirmed  in  an  impact  assessment  study  by  independent  consultants. 
While  the  short-term  economic  benefits  might  be  relatively  limited  due  to  the  low 
number of direct flights between the Community and New Zealand and the already 
existing degree of market access, the medium- and long-term implications for other 
countries in the Pacific Rim would be considerable. The recent study has confirmed 
that  the  regulatory  and  policy  framework  for  air  transport  in  New  Zealand  should 
allow the Community to reach a model agreement with New Zealand, which would 
result  in  greater  levels  of  regulatory  convergence  and  new  opportunities  for  EU 
industry and users. New Zealand shares EU positions on many aviation-related issues 
and has a commitment to develop larger regional markets, which in the longer term 
would create considerable new market opportunities.  

CONCLUSIONS:  SUBSTANTIAL  ADDED  VALUE  OF  THE  PROPOSED  AIR  TRANSPORT 
NEGOTIATIONS WITH NEW ZEALAND 

A modernised framework for air transport between the EU and New Zealand offers 
significant  new  opportunities  for  strengthening  air  transport  in  a  competitive  level 
playing field. Further to that, it will strengthen further the excellent commercial and 
political relations between the EU and New Zealand. 

The  model  of  an  air  transport  partnership  between  the  European  Union  and  New 
Zealand  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  New  Zealand  would  replace  the  existing 
bilateral  air  services  agreements  between  New  Zealand  and  Member  States  and 
establish  a  modern  framework  for  air  services  between  the  EU  and  New  Zealand, 
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.  

5.2 

The negotiations of an Open Aviation Area agreement with New Zealand 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 

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need to include fifth-freedom rights.9 New Zealand can not be served with non-stop 
flights  from  Europe.  Therefore,  air  services  between  the  EU  and  New  Zealand  are 
operated on a one-stop basis via intermediate points which are significant markets in 
their own right, both in the Asia/Pacific region and in North America. It would not be 
economically  viable  to  operate  the  air  service  between  the  intermediate  points  and 
New Zealand without the respective traffic rights. Therefore, fifth-freedom rights via 
such intermediate points are essential in order to maximise the potential benefits of 
the agreement.  

The  reciprocal  opening  of  market  access  with  New  Zealand  has  already  been 
implemented  by  some  Member  States.  Very  recently,  the  United  Kingdom  reached 
an agreement with New Zealand providing for a high degree of market liberalisation. 
However, other Member States have not yet reached an advanced degree of market 
access in their relations with New Zealand. Twelve Member States currently do not 
have any access at all to the New Zealand market. 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  New  Zealand  coherent  and  would  grant  equal 
opportunities  for  all  Community  air  carriers  for  air  services  to  New  Zealand. 
Furthermore, it would create substantial new market opportunities for air carriers in 
the 12 Member States that currently do not have any rights concerning air transport 
from  and  to  New  Zealand.  An  air  transport  agreement  on  Community  level  would 
also  give  smaller  carriers  the  possibility  to  extend  their  network  to  New  Zealand. 
While  traffic  demand  between  several  Member  States  and  New  Zealand  would  not 
necessarily make direct flights commercially viable, air carriers could pursue benefits 
through code-sharing arrangements to and from New Zealand. 

An EU-New Zealand agreement would allow the European airline industry to invest 
in New Zealand and to benefit from capital originating from New Zealand. 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  thereby 
enabling  the  provision  of  services  according  to  the  needs  of  their  global  customers 
and no longer being constrained by the need to combine rights under various bilateral 
agreements.  

5.3 

Open  aviation  markets  need  a  framework  that  ensures  fair  competition  and  high 
standards  of  safety,  security  and  environmental  protection.  Market  opening  and 
regulatory co-operation towards convergence must go hand in hand. The bilateral air 
services  agreements  between  some  Member  States  and  New  Zealand  have  granted 
New  Zealand  air  carriers  fully  open  market  access  while  not  adequately  ensuring 
regulatory convergence. A comprehensive air transport agreement with New Zealand 
on  a  Community  level  would  reinforce  high  standards  of  safety,  security, 
environmental protection, passenger protection and other regulatory issues.  

9 

Third-freedom is the right to carry passengers and freight from the EU to New Zealand. Fourth-freedom 
is the right to carry passengers and freight from New Zealand to the EU. Fifth-freedom is the right to 
carry passengers and freight from an intermediate point to New Zealand on a service starting in the EU. 

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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 New Zealand will ensure a competitive level 
playing  field  to  avoid  distortions  of  competition.  New  Zealand  has  strong 
competition authorities enforcing competition rules. There is no government support 
to  the  airline  industry.  New  Zealand  also  has  high  standards  of  aviation  safety  and 
security. New Zealand shares the environmental policy objectives of the Community. 
As a consequence, based on the current level of enforcement of safety and security 
standards,  of  competition  rules  and  environmental  rules  in  New  Zealand,  prospects 
for  a  high  level  of  regulatory  co-operation  and/or  convergence  between  the 
Community and New Zealand are excellent.  

In informal exploratory talks, New Zealand has confirmed its willingness to achieve 
a  high  degree  of  regulatory  convergence  with  the  Community  and  establish  a 
competitive level playing field for EU and New Zealand carriers. Such a regulatory 
convergence  can  only  be  achieved  at  Community  level.  Bilateral  agreements  fall 
short  of  ensuring  such  an  adequate  regulatory  co-operation.  An  EU-New  Zealand 
agreement  should  establish co-operation mechanisms to ensure that the rules of the 
agreement are respected and further developed. 

The  economic  benefits  of  an  air  transport  agreement  with  New  Zealand  would  be 
further  increased  by  similar  agreements  with  countries  in  the  Asia/Pacific  region, 
particularly Australia. Hence, the new partnership between the European Union and 
New Zealand should be open for other countries that might wish to join. 

This  partnership  can  be  progressively  developed  towards  an  Open  Aviation  Area 
between the European Community and New Zealand. Exploratory talks have shown 
that New Zealand 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 
would  send  a  clear  signal  to  other  third  countries  to  join  the  trend  towards  a  more 
flexible international framework for air transport. 

5.4 

5.5 

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

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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