Proposal for a Council Decision on the conclusion of the Agreement on certain aspects of air services between the European Union and the Republic of Indonesia
Date: 2010-05-26
Institutions: European Commission
Subjects: Indonesia, agreement (EU), air transport, aviation fuel, fuel tax, ratification of an agreement

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EUROPEAN COMMISSION 

Brussels, 26.5.2010 
COM(2010) 247 final 

ANNEX  

AGREEMENT 

between the European Union and the Government of the Republic of Indonesia 

on certain aspects of air services 

accompanying document to 

Proposal for a 

COUNCIL DECISION 

on the conclusion of the Agreement on certain aspects of air services 

between the European Union and the Republic of Indonesia  

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ANNEX  

AGREEMENT 

between the European Union and the Government of the Republic of Indonesia 

on certain aspects of air services 

accompanying document to 

Proposal for a 

COUNCIL DECISION 

on the conclusion of the Agreement on certain aspects of air services 

between the European Union and the Republic of Indonesia  

THE EUROPEAN UNION  

of the one part, and  

THE GOVERNMENT OF THE REPUBLIC OF INDONESIA  

(hereinafter referred to as Indonesia) 

of the other part 

(hereinafter referred to as ‘the Parties’) 

NOTING that bilateral air service agreements have been concluded between several Member 
States of the European Union and Indonesia containing provisions contrary to the law of the 
European Union. 

NOTING that the European Union has exclusive competence with respect to several aspects 
that  may  be  included  in  bilateral  air  service  agreements  between  Member  States  of  the 
European Union and third countries, 

NOTING that under the law of the European Union European Union air carriers established in 
a Member State have the right to non-discriminatory access to air routes between the Member 
States of the European Union and third countries, 

HAVING  REGARD  to  the  agreements  between  the  European  Union  and  certain  third 
countries  providing  for  the  possibility  for  the  nationals  of  such  third  countries  to  acquire 
ownership in air carriers licensed in accordance with the law of the European Union, 

RECOGNISING  that  certain  provisions  of  the  bilateral  air  service  agreements  between 
Member States of the European Union and Indonesia, which are contrary to European Union 
law, must be brought into conformity with it in order to establish a sound legal basis for air 

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services between the European Union and Indonesia and to preserve the continuity of such air 
services, 

NOTING  that  under  the  law  of  the  European  Union  air  carriers  may  not,  in  principle, 
conclude agreements which may affect trade between Member States of the European Union 
and  which  have  as  their  object  or  effect  the  prevention,  restriction  or  distortion  of 
competition, 

RECOGNISING  that  provisions  in  bilateral  air  service  agreements  concluded  between 
Member States of the European Union and Indonesia which i) require or favour the adoption 
of agreements between undertakings, decisions by associations of undertakings or concerted 
practices  that  prevent,  distort  or  restrict  competition  between  air  carriers  on  the  relevant 
routes; or ii) reinforce the effects of any such agreement, decision or concerted practice; or iii) 
delegate  to  air  carriers  or  other  private  economic  operators  the  responsibility  for  taking 
measures  that  prevent,  distort  or  restrict  competition  between  air  carriers  on  the  relevant 
routes may render ineffective the competition rules applicable to undertakings, 

NOTING that it is not a purpose of the European Union, as part of this agreement, to increase 
the  total  volume  of  air  traffic  between  the  European  Union  and  Indonesia,  to  affect  the 
balance  between  European  Union  air  carriers  and  air  carriers  of  Indonesia,  or  to  negotiate 
amendments  to  the  provisions  of  existing  bilateral  air  service  agreements  concerning  traffic 
rights. 

HAVE AGREED AS FOLLOWS:  

ARTICLE 1 

General provisions 

1. 
For the purposes of this Agreement, ‘Member States’ shall mean Member States of the 
European  Union  and  'EU  Treaties'  shall  mean  the  Treaty  on  the  European  Union  and  the 
Treaty on the Functioning of the European Union.  

2. 
References  in  each  of  the  agreements  listed  in  Annex  1  to  nationals  of  the  Member 
State  that  is  a  party  to  that  agreement  shall  be  understood  as  referring  to  nationals  of  the 
Member States of the European Union. 

3. 
References in each of the agreements listed in Annex 1 to air carriers or airlines of the 
Member State that is a party to that agreement shall be understood as referring to air carriers 
or airlines designated by that Member State. 

ARTICLE 2 

Designation by a Member State 

1. 
The provisions in paragraphs 2 and 3 of this Article shall supersede the corresponding 
provisions  in  the  articles  listed  in  Annex  2  (a)  and  (b)  respectively,  in  relation  to  the 
designation  of  an  air  carrier  by  the  Member  State  concerned,  its  authorisations  and 
permissions granted by Indonesia, and the refusal, revocation, suspension or limitation of the 
authorisations or permissions of the air carrier, respectively. 

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On receipt of a designation by a Member State, Indonesia shall grant the appropriate 

2. 
authorisations and permissions with minimum procedural delay, provided that: 

(a) 

(b) 

(c) 

the  air  carrier  is  established  in  the  territory  of  the  designating  Member  State 
under  the  EU  Treaties  and  has  a  valid  Operating  Licence  in  accordance  with 
the law of the European Union; and 

effective regulatory control of the air carrier is exercised and maintained by the 
Member  State  responsible  for  issuing  its  Air  Operator’s  Certificate  and  the 
relevant aeronautical authority is clearly identified in the designation; and 

the  air  carrier  is  owned,  directly  or  through  majority  ownership,  and  it  is 
effectively  controlled  by  Member  States  and/or  nationals  of  Member  States, 
and/or by other states listed in Annex 3 and/or nationals of such other states. 

Indonesia may refuse, revoke, suspend or limit the authorisations or permissions of an 

3. 
air carrier designated by a Member State where: 

(a) 

(b) 

(c) 

(d) 

(e) 

the air carrier is not established in the territory of the designating Member State 
under  the  EU  Treaties  or  does  not  have  a  valid  Operating  Licence  in 
accordance with the law of the European Union; or 

effective regulatory control of the air carrier is not exercised or not maintained 
by  the  Member  State  responsible  for  issuing  its  Air  Operator’s  Certificate,  or 
the  relevant  aeronautical  authority  is  not  clearly  identified  in  the  designation; 
or 

the air carrier is not owned, directly or through majority ownership, or it is not 
effectively  controlled  by  Member  States  and/or  nationals  of  Member  States, 
and/or by other states listed in Annex 3 and/or nationals of such other states; or 

the  air  carrier  is  already  authorised  to  operate  under  a  bilateral  agreement 
between  Indonesia  and  another  Member  State  and  Indonesia  can  demonstrate 
that, by exercising traffic rights under this Agreement on a route that includes a 
point in that other Member State, it would be circumventing restrictions on the 
traffic rights imposed by that other agreement; or 

the  air  carrier  designated  holds  an  Air  Operators  Certificate  issued  by  a 
Member  State  and  there  is  no  bilateral  air  services  agreement  between 
Indonesia  and  that  Member  State  and  that  Member  State  has  denied  traffic 
rights to the air carrier designated by Indonesia.  

In  exercising  its  right  under  this  paragraph,  Indonesia  shall  not  discriminate  between 
European Union air carriers on the grounds of nationality. 

ARTICLE 3 

Safety 

The  provisions  in  paragraph  2  of  this  Article  shall  complement  the  corresponding 

1. 
provisions in the articles listed in Annex 2 (c).  

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2. 
Where  a  Member  State  has  designated  an  air  carrier  whose  regulatory  control  is 
exercised and maintained by another Member State, the rights of Indonesia under the safety 
provisions of the agreement between the Member State that has designated the air carrier and 
Indonesia  shall  apply  equally  in  respect  of  the  adoption,  exercise  or  maintenance  of  safety 
standards by that other Member State and in respect of the operating authorisation of that air 
carrier. 

ARTICLE 4 

Taxation of aviation fuel 

The  provisions  in  paragraph  2  of  this  Article  shall  complement  the  corresponding 

1. 
provisions in the articles listed in Annex 2 (d).  

2. 
Notwithstanding any other provision to the contrary, nothing in each of the agreements 
listed in Annex 2 (d) shall prevent a Member State from imposing, on a non-discriminatory 
basis, taxes, levies, duties, fees or charges on fuel supplied in its territory for use in an aircraft 
of a designated air  carrier of Indonesia that operates between a point in the territory  of that 
Member  State  and  another  point  in  the  territory  of  that  Member  State  or  in  the  territory  of 
another Member State. 

ARTICLE 5 

Compatibility with competition rules 

1. 
Notwithstanding any other provision to the contrary, nothing in each of the agreements 
listed in Annex 1 shall (i) favour the adoption of agreements between undertakings, decisions 
by  associations  of  undertakings  or  concerted  practices  that  prevent,  distort  or  restrict 
competition; (ii) reinforce the effects of any such agreement, decision or concerted practice; 
or  (iii)  delegate  to  private  economic  operators  the  responsibility  for  taking  measures  that 
prevent, distort or restrict competition. 

The  provisions  contained  in  the  agreements  listed  in  Annex  1  that  are  incompatible 

2. 
with paragraph 1 of this Article shall not be applied. 

ARTICLE 6 

Annexes to the Agreement 

The Annexes to this Agreement shall form an integral part thereof. 

ARTICLE 7 

Revision or amendment  

The Parties may, at any time, revise or amend this Agreement by mutual consent. 

ARTICLE 8 

Entry into force and provisional application 

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1. 
This  Agreement  shall  enter  into  force  when  the  Parties  have  notified  each  other  in 
writing  that  their  respective  internal  procedures  necessary  for  its  entry  into  force  have  been 
completed. 

Notwithstanding paragraph 1, the Parties agree to provisionally apply this Agreement 
2. 
from  the  first  day  of  the  month  following  the  date  on  which  the  Parties  have  notified  each 
other of the completion of the procedures necessary for this purpose. 

This  Agreement  shall  apply  to  all  agreements  and  arrangements  listed  in  Annex  1 
3. 
including those that, at the date of signature of this Agreement, have not yet entered into force 
and are not being applied provisionally. 

ARTICLE 9 

Termination 

In  the  event  that  an  agreement  listed  in  Annex  1  is  terminated,  all  provisions  of  this 
1. 
Agreement  that  relate  to  the  agreement  listed  in  Annex  1  concerned  shall  terminate  at  the 
same time.  

In the event that all agreements listed in Annex 1 are terminated, this Agreement shall 

2. 
terminate at the same time.  

IN  WITNESS  WHEREOF,  the  undersigned,  being  duly  authorised,  have  signed  this 
Agreement. 

Done at [….] in duplicate, on this […] day of […, …] in the Bulgarian, Czech, Danish, Dutch, 
English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, 
Maltese,  Polish,  Portuguese,  Romanian,  Slovak,  Slovene,  Spanish,  Swedish  and  Indonesian 
languages.  

FOR THE EUROPEAN UNION:  FOR  THE  GOVERNMENT  OF  THE  REPUBLIC  OF 
INDONESIA: 

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ANNEX 1  

List of agreements referred to in Article 1 of this Agreement 

a)  Air  service  agreements  and  other  arrangements  between  the  Republic  of  Indonesia 
and Member States of the European Union as modified or amended which, at the date of 
signature of this Agreement, have been concluded, signed or initialled: 

Air  Transport  Agreement  between  the  Austrian  Federal  Government  and  the 
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Government of the Republic of Indonesia on scheduled air transport, signed at Vienna on 
19 March 1987, hereinafter referred to “Indonesia – Austria Agreement” in Annex 2; 

Agreement  between  the  Government  of  the  Kingdom  of  Belgium  and  the 
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Government  of  the  Republic  of  Indonesia  for  air  services  between  and  beyond  their 
territories,  initialled  at  Djakarta  on  10  October  1970,  and  attached  to  a  Memorandum  of 
Understanding,  signed  at  Djakarta  on  10  October  1970,  hereinafter  referred  to  “Indonesia  – 
Belgium Agreement” in Annex 2; 

-  Air  transport  agreement  between  the  Government  of  the  Republic  of  Bulgaria  and 
Government  of  the  Republic  of  Indonesia  for  air  services  between  and  beyond  their 
respective  territories,  done  at  Jakarta  on  22  June  1992,  hereinafter  referred  to  "Indonesia-
Bulgaria Agreement" in Annex 2; 

Air  transport  agreement  between  the  Government  of  the  Czechoslovak  Socialist 
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Republic and the Government of the Republic of Indonesia, signed at Prague on 10 May 
1972, hereinafter referred to “Indonesia – Czech Republic Agreement” in Annex 2; 

Last modified by Exchange of letters done at Djakarta on 18 January 1986; 

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Agreement  between  the  Government  of  Denmark  and  the  Government  of  the 
Republic  of  Indonesia  for  Air  Services  between  their  respective  Territories,  signed  at 
Copenhagen  on  23  June  1971,  hereinafter  referred  to  “Indonesia  –  Denmark  Agreement”  in 
Annex 2; 

Air  services  agreement  between  the  Government  of  the  Republic  of  Finland  and 
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the  Government  of  the  Republic  of  Indonesia,  signed  at  Djakarta  on  7  November  1997, 
hereinafter referred to “Indonesia – Finland Agreement” in Annex 2; 

Accord entre le Gouvernement de la République Française et le Gouvernement de 
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la République d’Indonésie relatif aux services aériens entre leurs territoires respectifs et au-
delà de ceux-ci, done at Djakarta on 24 November 1967, hereinafter referred to “Indonesia – 
France Agreement” in Annex 2; 

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Agreement  between  the  Federal  Republic  of  Germany  and  the  Republic  of 
Indonesia  for  Air  Services  between  and  beyond  their  respective  Territories,  signed  at 
Djakarta on 4 December 1969, hereinafter referred to “Indonesia – Germany Agreement” in 
Annex 2; 

-  Agreement  between  the  Government  of  the  Hellenic  Republic  and  the  Government  of 
the  Republic  of  Indonesia,  initialled  at  Athens  on  2  June  2006,  and  attached  to  a  Agreed 
Minutes, signed at Athens on 2 June 2006; 

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- 
Air transport agreement between the Government of the Republic of Hungary and 
the Government  of  the Republic of Indonesia, signed at Djakarta on 20 September 1994, 
hereinafter referred to “Indonesia – Hungary Agreement” in Annex 2; 

Agreement between the Government of the Italian Republic and the Government 
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of the Republic of Indonesia for air services between and beyond their respective Territories, 
signed at Djakarta on 7 December 1966, hereinafter referred to “Indonesia – Italy Agreement” 
in Annex 2; 

- 
Draft  Agreement  between  the  Government  of  the  Grand  Duchy  of  Luxembourg 
and  the  Government  of  the  Republic  of  Indonesia  on  air  services,  hereinafter  referred  to 
“Indonesia – Luxembourg Agreement” in Annex 2; 

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Air  Transport  Agreement  between  the  Government  of  the  Kingdom  of  the 
Netherlands and the Government of the Republic of Indonesia, signed at The Hague on 23 
November 1990, hereinafter referred to “Indonesia – Netherlands Agreement” in Annex 2; 

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Air  transport  agreement  between  the  Government  of  the  Republic  of  Poland  and 
the  Republic  of  Indonesia  relating  to  scheduled  air  transport,  signed  at  Djakarta  on  13 
December 1991, hereinafter referred to “Indonesia – Poland Agreement” in Annex 2; 

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Air services agreement between the Government of Romania and the Government 
of the Republic of the Indonesia, signed at Jakarta on 7 September 1993, hereinafter referred 
to "Indonesia – Romania Agreement" in Annex 2; 

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Agreement  between  the  Government  of  the  Kingdom  of  Spain  and  the 
Government of the Republic of Indonesia related to scheduled air services, done at Madrid 
on 5 October 1993, hereinafter referred to "Indonesia-Spain Agreement in Annex 2; 

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Agreement  between  the  Government  of  Sweden  and  the  Government  of  the 
Republic  of  Indonesia  for  air  services  between  their  respective  territories,  signed  at 
Copenhagen  on  23  June  1971,  hereinafter  referred  to  “Indonesia  –  Sweden  Agreement”  in 
Annex 2; 

Agreement between the Government of the United Kingdom of Great Britain and 
- 
Northern Ireland and the Government of the Republic Indonesia for Air services between 
and beyond their respective territories, signed at Jakarta on 28 June 1973, hereinafter referred 
to "Indonesia – UK Agreement" in Annex 2;  

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List of articles in the agreements listed in Annex 1 and referred to in Articles 2 to 4 of 
this Agreement 

ANNEX 2 

(a) Designation by a Member State: 

Article 3 of the Indonesia – Austria Agreement; 

Article 3 of the Indonesia – Belgium Agreement; 

Article III of the Indonesia – Bulgaria Agreement; 

Article 3 of the Indonesia – Czech Republic Agreement; 

Article 3 of the Indonesia – Denmark Agreement; 

Article 3 of the Indonesia – Finland Agreement; 

Article 3 of the Indonesia – France Agreement; 

Article 3 of the Indonesia – Germany Agreement; 

Article 3 of the Indonesia – Hungary Agreement; 

Article 3 of the Indonesia – Italy Agreement; 

Article 3 of the Indonesia – Luxembourg Agreement; 

Article 3 of the Indonesia – Netherlands Agreement; 

Article 3 of the Indonesia – Poland Agreement; 

Article 3 of Indonesia – Romania Agreement; 

Article III of the Indonesia – Spain Agreement; 

Article 3 of the Indonesia – Sweden Agreement; 

Article 3 of the Indonesia – UK Agreement. 

(b) Refusal, revocation, suspension or limitation of authorisations or permissions: 

Articles 3 and 4 of the Indonesia – Austria Agreement; 

Article 3 of the Indonesia – Belgium Agreement; 

Article IV of the Indonesia – Bulgaria Agreement; 

Article 3 of the Indonesia – Czech Republic Agreement; 

Article 3 of the Indonesia – Denmark Agreement; 

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Articles 3 and 4 of the Indonesia – Finland Agreement; 

Article 3 of the Indonesia – France Agreement; 

Article 3 of the Indonesia – Germany Agreement; 

Article 4 of the Indonesia – Hungary Agreement; 

Article 3 of the Indonesia – Italy Agreement; 

Article 4 of the Indonesia – Luxembourg Agreement; 

Articles 3 and 4 of the Indonesia – Netherlands Agreement; 

Articles 3 and 4 of the Indonesia – Poland Agreement; 

Article 4 of the Indonesia – Romania Agreement; 

Articles III and IV of the Indonesia – Spain Agreement; 

Article 3 of the Indonesia – Sweden Agreement; 

Article 3 of the Indonesia – UK Agreement. 

(c) Safety: 

Articles 3 and 6 of the Indonesia – Austria Agreement; 

Article 3 of the Indonesia – Belgium Agreement; 

Article 3 of the Indonesia – Czech Republic Agreement; 

Article 3 of the Indonesia – Denmark Agreement; 

Article 16 of the Indonesia – Finland Agreement; 

Article 3 of the Indonesia – France Agreement; 

Safety Article of the Indonesia – Germany Agreement; 

Article 16 of the Indonesia – Hungary Agreement; 

Article 3 of the Indonesia – Italy Agreement; 

Article 6 of the Indonesia – Luxembourg Agreement; 

Article 14 of the Indonesia – Netherlands Agreement; 

Article 3 of the Indonesia – Poland Agreement; 

Article VI of the Indonesia – Spain Agreement; 

Article 3 of the Indonesia – Sweden Agreement.  

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(d) Taxation of aviation fuel: 

Article 7 of the Indonesia – Austria Agreement; 

Article 4 of the Indonesia – Belgium Agreement; 

Article VI of the Indonesia – Bulgaria Agreement; 

Article 5 of the Indonesia – Czech Republic Agreement; 

Article 4 of the Indonesia – Denmark Agreement; 

Article 6 of the Indonesia – Finland Agreement; 

Article 4 of the Indonesia – France Agreement; 

Article 5 of the Indonesia – Germany Agreement; 

Article 6 of the Indonesia – Hungary Agreement; 

Article 4 of the Indonesia – Italy Agreement; 

Article 8 of the Indonesia – Luxembourg Agreement; 

Article 10 of the Indonesia – Netherlands Agreement; 

Article 6 of the Indonesia – Poland Agreement; 

Article 9 of the Indonesia – Romania Agreement; 

Article VIII of the Indonesia – Spain Agreement; 

Article 4 of the Indonesia – Sweden Agreement; 

Article 4 of the Indonesia – UK Agreement. 

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ANNEX 3 

List of other states referred to in Article 2 of this Agreement 

(a) 

(b) 

(c) 

(d) 

The Republic of Iceland (under the Agreement on the European Economic Area); 

The Principality of Liechtenstein (under the Agreement on the European Economic 
Area); 

The Kingdom of Norway (under the Agreement on the European Economic Area); 

The Swiss Confederation (under the Agreement between the European Community 
and the Swiss Confederation on Air Transport) 

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