Communication from the Commission to the European Parliament pursuant to the second subparagraph of Article 251(2) of the EC Treaty concerning the common position adopted by the Council in view of adoption of the Regulation of the European Parliament and of the Council on common rules for the operation of air transport services in the Community (recast)
Date: 2008-04-21
Institutions: European Commission
Subjects: air freight rate, air safety, air traffic, air transport, consumer information, consumer protection, intra-EU transport, transport regulations

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 21.4.2008 
COM(2008) 175 final 

2006/0130 (COD) 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT 

pursuant to the second subparagraph of Article 251(2) of the EC Treaty 

concerning the  

common position adopted by the Council in view of adoption of the Regulation of the 
European Parliament and of the Council on common rules for the operation of air 
transport services in the Community (recast) 

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2006/0130 (COD) 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT 

pursuant to the second subparagraph of Article 251(2) of the EC Treaty 

concerning the  

common position adopted by the Council in view of adoption of the Regulation of the 
European Parliament and of the Council on common rules for the operation of air 
transport services in the Community (recast) 

(Text with EEA relevance) 

1. 

BACKGROUND 

Date on which the proposal was sent to the European Parliament and the 
Council: 
(COM(2006) 396 – 2006/0130 (COD)) 

18 July 2006 

Date of the opinion of the European Economic and Social Committee: 

31 May 2007 

Date of the opinion of the European Parliament, first reading: 

Date of adoption of the common position (by unanimity): 

11 July 2007 

18.4.2008 

2. 

OBJECTIVE OF THE COMMISSION PROPOSAL 

On 18 July 2006 the Commission adopted a proposal for a Regulation on common rules for 
the  operation  of  air  transport  services  in  the  Community  (recast)  which  will  replace 
Regulations Nos 2407/92, 2408/92 and 2409/92 (generally known as the "third package")1.  

The main points of the proposed recast are as follows: 

(1) 

(2) 

(3) 

(4) 

1 

Reinforcement of the requirements for the granting and revoking of an operating 
licence:  

Strengthening the requirements for the leasing of aircraft: 

Clarification  of  the  rules  applicable  to  public  service  obligations  (PSO):  these 
rules  have  been  revised  in  order  to  lighten  the  administrative  burden,  to  avoid 
excessive  recourse  to  PSO  for  closing  certain  markets  to  competition  and  to  attract 
more competitors in the tender procedures.  

Clarification of relationships with third countries: the proposal replaces all existing 
bilateral agreements between Member States which still restrict the freedom to provide 
air services.  

Regulation  (EEC)  No 2407/92  on  licensing  of  air  carriers  (OJ  L  240,  24.8.1992,  p.  1),  Regulation 
(EEC)  No 2408/92  on  access  for  Community  air  carriers  to  intra-Community  air  routes  (OJ  L 240, 
24.8.1992, p. 8), Regulation (EEC) No 2409/92 on fares and rates for air services (OJ L 240, 24.8.1992, 
p. 15). 

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(5) 

(6) 

Clarification  of  the  rules  applicable  to  traffic  distribution  between  airports:  the 
present  two-step  procedure  –  first  establishment  of  an  airport  system  and  then 
definition of the traffic distribution rules – is replaced by a one-step procedure where 
the concept of an "airport system" is abandoned.  

Improved  protection  for  consumer  rights  (price  transparency  and  non-
discrimination): in the proposal, air fares have to include all applicable taxes, charges 
and  fees  and  air  carriers  must  provide  the  general  public  with  comprehensive 
information on their air fares and rates and the conditions attached.  

3. 

COMMENTS ON THE COMMON POSITION 

the 

three 

the  negotiations 

institutions  following 

The  common  position  not  only  represents  the  Council’s  position  but  also  reflects  the 
compromise  reached  between 
in 
autumn 2007.  The  Chairman  of  the  European  Parliament’s  Committee  on  Transport  and 
Tourism  has  informed  the  Council  Presidency  by  letter  that  he  would  therefore  be 
recommending that the TRAN Committee approve the common position on second reading, 
provided  that  the  terminology  on  the  wet-leasing  of  aircraft  proposed  by  the  Parliament  is 
incorporated. 
This  compromise,  including  the  European  Parliament's  request,  was  endorsed  by  the 
Transport, Telecommunications and Energy Council at its meeting on 30 November 2007.  
Apart from this specific point, the other items under discussion between the three institutions 
which were the subject of a compromise incorporated in the common position concern:  

•  The social dimension of the internal market: the two institutions are satisfied by a recital 
(Recital 8a)  reiterating  the  Member  States'  obligation  to  apply  the  relevant  national  and 
European social legislation. The Commission has also made a commitment to inform both 
institutions  of  the  findings  of  the  study  it  is  carrying  out  into  the  impact  of  the  internal 
aviation market on employment and working conditions; 

•  The financial soundness to cover the reimbursement and repatriation of passengers in 
the event of bankruptcy: this is no longer referred to in the text but the Commission will 
study  the  feasibility  and  implications  of  any  measure  involving  an  obligation  to  take  out 
insurance for the reimbursement of tickets and to cover repatriation fees; 

•  External relations: this aspect was categorically rejected by the Council. In the interests 
of compromise and to secure a comprehensive agreement between all the institutions, the 
Commission  accepted  that  the  provisions  on  external  relations  be  removed,  but  made  a 
joint  declaration  with  the  Member  States  on  cooperation  concerning  the  access  of  third 
countries  to  the  internal  market  in  air  transport.  Furthermore,  it  made  a  unilateral 
declaration on the restrictions to code sharing arrangements between Community and third 
country air carriers, as referred to in the new Article 15(5);  

•  Traffic  distribution  between  airports:  under  the  new  Article  19  traffic  may  be 

distributed between airports provided that the airports: 

•  serve the same city or conurbation,  

•  are served by an adequate transport infrastructure with, as far as possible, a direct 
connection  making  it  possible  to  arrive  at  the  airport  in  less  than  90  minutes 
including, where necessary, on a cross-border basis, 

•  are  linked  with  each  other  and  the  city  or  conurbation  they  serve  by  frequent, 

reliable and efficient public transport services. 

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•  provide  the  services  needed  by  air  carriers  and  do  not  unduly  prejudice  their 

commercial opportunities.  

•  Price  information:  the  scope  of  the  obligation  for  transparent  information  and  non-
discrimination  has  been  extended  to  all  flights  leaving  the  Community,  including  flights 
operated by third country air carriers (Article 24). From now on the final prices announced 
for  these  flights  must  include  fares,  taxes,  airport  charges  and  other  charges,  surcharges 
and  fees.  A  recital  (Recital  15)  encourages  Community  airlines  to  demonstrate  the  same 
level of transparency for flights to Community airports. 

The Commission welcomes the fact that the new rules have been considerably improved and 
are much clearer as a result of the interinstitutional negotiations.  

4. 

CONCLUSION 

The Commission considers that the Council’s common position helps maintain the main aim 
and  the  spirit  of  its  proposal  and  is  therefore  able  to  support  it.  It  welcomes  the  fact  that  it 
reflects the state of the interinstitutional negotiations, paving the way for the adoption of this 
proposal on second reading. 

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