Irish national procedure for allocating limited traffic rights
Date: 2009-07-10
Institutions: European Commission
Subjects: Ireland, air transport, airline, competition law, third country, transport licence, transport regulations








C_2009157EN.01001101.xml










10.7.2009   


EN


Official Journal of the European Union


C 157/11





Irish national procedure for allocating limited traffic rights
2009/C 157/07
In accordance with Article 6 of Regulation (EC) No 847/2004 on the negotiation and implementation of air service agreements between Member States and third countries, the European Commission publishes the following national procedure for the distribution among eligible Community carriers of air traffic rights where they are limited under air service agreements with third countries.

GENERAL OBJECTIVES

The general objective of the Department of Transport in relation to the allocation of limited rights is to facilitate and encourage as wide a range as possible of reliable, regular and competitive air services for the benefit of Irish tourism, trade and industry.
More specifically it is the objective of the Department to maximise the benefits to consumers, to maintain a high level of safety and to promote economic development of regions.
1.   Information and application for traffic rights







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The Aviation Services & Security Division of the Department of Transport will publish on the Department’s website a list of planned bilateral negotiations with third countries.










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The outcome of these bilateral negotiations will be published on the Department’s website.










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Expressions of interest for the allocation of rights under new or amended bilateral agreements with third countries will be invited through the Department’s website. Expressions of interest shall be submitted within 30 days from the publication of the invitation.










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Where expressions of interest exceed the traffic rights available, the Department’s procedure for allocating limited traffic rights will apply.




2.   Allocation procedure

The decision-making process for allocation of limited traffic rights, or designation on restrictive bilateral agreements is based on initial written statements and positions by applicant eligible Community carriers. The written submission will be based on a standard form which will be available on the Department’s website. The standard form will be based on the selection criteria at 3.1 and 3.2 below.

Allocation Committee

A committee will evaluate each proposal. The objective of the Committee will be to compare competing applications in order to determine, as far as objectively possible, which of the proposals is likely to produce the most advantageous service for Irish consumers, tourism and business.
If necessary, the Committee will consult with the Irish Aviation Authority and/or the Commission for Aviation Regulation for advice in respect of any technical matter for which each regulatory body has responsibility.
3.   A two-phase allocation system has been established:







1.


Pre-qualification










2.


Evaluation of each proposal against selection criteria




3.1.   Pre-qualification

Carriers must satisfy the Allocation Committee that:






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they are established in Ireland,










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they have received an Operating Licence in accordance with Regulation (EC) No 1008/2008 of the European Parliament and of the Council of 24 September 2008 on common rules for the operation of air services in the Community (Recast) (1),










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effective regulatory control of the airline is exercised and maintained by the European Community Member State responsible for issuing its Air Operator’s Certificate.




3.2.   Specific Evaluation Criteria

Each case will be evaluated by the Allocation Committee under the three categories below:
(a)   Quality of the service proposed







 


Description of service










 


Assessment of business plans and traffic forecasts










 


Technical, commercial and financial capability to provide services and ensure continued operation










 


Type of operation (scheduled or non-scheduled, code-sharing, direct-indirect service)










 


Frequencies of service










 


Availability of connections, accessibility from regions










 


Aircraft type and configuration










 


Duration of service, proposed commencement date










 


Seasonality




(b)   Price







 


Pricing policy and fare structure










 


Pricing by category/season




(c)   Marketing of services







 


Marketing plan/approach/arrangements with other carriers










 


Passenger targets










 


Distribution/consumer access to the service (On-line booking only/ticketing etc)




(d)   Procedural Deadline

The Committee will evaluate each application and will make a recommendation to the Minister within two months of date of receipt of the applications. The decision will be made available on the Department’s website.
(e)   Appeals

The Minister shall, upon request in writing from an air carrier aggrieved by a decision of the Committee, establish an appeals panel. An appeals panel will consist of three persons appointed by the Minister. The decisions of the appeals panel will be made within two months from date of receipt of appeal. Decisions will be reasoned and will be published on the Department’s website.
4.   Duration and transfer of allocated traffic rights







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Limited traffic rights may be allocated for a limited period (maximum three years) as specified in the invitation for expressions of interest.










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Limited traffic rights are not transferable.




5.   Monitoring & Revocation







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Traffic rights will be monitored by the Aviation Regulation and International Relations Division.










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Rights should be taken up promptly and used in accordance with the application.










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Limited traffic rights will be revoked if any of the following occurs:






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if not used within a specified timeframe,










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if the level of service is not achieved,










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the air carriers Operating Licence is revoked or suspended,










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the limited traffic rights have not been utilised or not fully utilised for a period of six months, unless the carrier can demonstrate that the interruption was beyond its control or due to exceptional circumstances.














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Where traffic rights are revoked, they will be reallocated in accordance with these procedures.










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It will be open to competitor airlines to contest the efficient use of traffic rights by incumbent airlines. In such circumstances, the competing airline should make a written submission to the Aviation Services and Security Division, Department of Transport, demonstrating how its proposed services would be clearly superior to existing services.










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With regard to rights allocated before entry into force of the Regulation, such rights may be contestable by competitor airlines following completion of a transitional period of three years, before existing rights become subject to (re)allocation.






(1)  OJ L 293, 31.10.2008, p. 3.