Proposal for a Decision of the Council and the representatives of the Governments of the Member States of the European Union, meeting within the Council On the signature and provisional application of the Common Aviation Area Agreement between the European Union and its Member States, of the one part, and Georgia, of the other part
Date: 2010-06-28
Institutions: European Commission
Subjects: Georgia, air space, air transport, cooperation policy, signature of an agreement, transport policy

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EUROPEAN COMMISSION 

Brussels, 28.6.2010 
COM(2010)338 final 

2010/0184 (NLE) 

Proposal for a 

Decision of the Council and the representatives of the Governments of the Member 
States of the European Union, meeting within the Council 

On the signature and provisional application of the Common Aviation Area Agreement 
between the European Union and its Member States, of the one part, and Georgia, of the 
other part 

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EXPLANATORY MEMORANDUM 

1. 

Context of the proposal 

•  Grounds for and objectives of the proposal 

The Common Aviation Area Agreement between the European Union and its Member 
States,  of  the  one  part,  and  Georgia,  of  the  other  part  has  been  negotiated  under  a 
mandate  received  from  the  Council  in  June  2009.  Air  services  between  the  EU  and 
Georgia  presently  operate  on  the  basis  of  bilateral  agreements  between  individual 
Member States and Georgia. It is part of the EU neighbourhood policy to replace this 
network of bilateral agreements through the establishment of a Common Aviation Area 
between the EU and its neighbours. The Agreement aims at: 

-  gradual  market  opening  in  terms  of  access  to  routes  and  capacity  on  a  reciprocal 
basis;  
-  non-discrimination  and  level  playing  field  for  economic  operators  based  on  the 
principles of the EU Treaties; 
- Alignment of the Georgian aviation legislation with EU legislation on issues such as 
safety, security and air traffic management.  

The  Agreement  provides  for  the  possibility  for  Georgia  to  join  the  main  multilateral 
aviation  agreement  with  European  countries,  the  European  Common  Aviation  Area 
(ECAA) signed in 2006. 

•  General context 

The  negotiating  mandate  set  the  objective of  establishing  an  Common  Aviation  Area 
(CAA) between the EU and Georgia. This would extend the rules and provisions of the 
single market for air transport in the EU to a large extent to Georgia in which European 
and Georgian airlines would be able to provide air services without any restriction. 

Based  on  the  negotiating  directives  of  the  mandate,  a  draft  Agreement  with  Georgia 
was initialled by the two sides on 5 March 2010.  

•  Existing provisions in the area of the proposal 

The  provisions  of  the  Agreement  supersede  the  existing  bilateral  air  services 
agreements between Member States and Georgia. 

•  Consistency with the other policies and objectives of the Union 

The  conclusion  of  an  Common  Aviation  Area  Agreement  with  Georgia  has  been  a 
priority  for  the  EU  and  is  an  important  element  in  the  development  of  the  European 
Neighbourhood  Policy,  as  identified  in  Commission  Communication  COM(2005)  79 
final  "Developing  the  agenda  for  the  Community's  external  aviation  policy"  and  the 
Communication  COM  (2008)  596  final  "Common  Aviation  Area  with 
the 
Neighbouring Countries by 2010 – Progress report" .  

2. 

Consultation of interested parties and impact assessment 

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•  Consultation of interested parties 

Consultation methods, main sectors targeted and general profile of respondents 

Throughout the negotiating process, the Commission has consulted with stakeholders, 
in  particular  via  regular  meetings  of  the  Special  Committee  and  the  Consultative 
Forum comprising representatives of air carriers, airports, and labour organisations. 

Summary of responses and how they have been taken into account 

All comments from stakeholders were duly taken into consideration in the preparation 
of the Union's negotiating position. 

•  Collection and use of expertise 

There was no need for external expertise. 

•  Impact assessment 

The Agreement ensures the gradual establishment of an EU/Georgia Common Aviation 
Area. A report prepared for the Commission in 2008 by consultants, estimated that an 
EU/Georgia  Common  Aviation  Area  would  generate  25,000  extra  passengers  and 
consumer benefits of up to 17 million € in 
the first effective year of market opening. 
The report has been made available to Member States and stakeholders via the CIRCA 
database. 

The Agreement establishes a Joint Committee which will be responsible for reviewing 
the implementation of the Agreement and its effects.  

3. 

Legal elements of the proposal 

•  Summary of the proposed action 

The  Agreement  consists  of  the  main  body  including  the  main  principles,  and  three 
annexes:  Annex  1  on  traffic  rights,  Annex  2  on  transitional  provisions  and  Annex  3 
including the EU aviation legislation to be taken over by Georgia. 

•  Legal basis 

Article  207  (5),  in  conjunction  with  Article  218  paragraphs  (2),  (5)  and  (7)  of  the 
Treaty on the Functioning of the European Union 

•  Subsidiarity principle 

The  subsidiarity  principle  applies  insofar  as  the  proposal  does  not  fall  under  the 
exclusive competence of the Union. 

The  objectives  of  the  proposal  cannot  be sufficiently  achieved  by  the  Member  States 
for the following reason(s). 

By establishing a Common Aviation Area, the Agreement will expand EU legislation 
in the field of aviation to Georgia. In particular, Georgia will take over EU legislation 

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in important fields such as safety, security and air traffic management. The Agreement 
will  replace  the  existing  arrangements  made  by  individual  Member  States.  The 
Agreement  creates  simultaneously  for  all  Union  air  carriers  uniform  conditions  for 
market access, and establishes new arrangements for regulatory co-operation between 
the  European  Union  and  Georgia  in  fields  essential  for  the  safe,  secure,  and  efficient 
operation  of  air  services.  These  arrangements  can  only  be  achieved  at  Union  level 
because they involve a number of areas of exclusive Union competence. 

Union  action  will  better  achieve  the  objectives  of  the  proposal  for  the  following 
reason(s). 

The  Agreement  allows  for  the  simultaneous  extension  of  its  terms  to  the  27  Member 
States,  applying  the  same  rules  without  discrimination  and  benefiting  all  Union  air 
carriers regardless of their nationality. These carriers can now operate freely from any 
point in the European Union to any point in Georgia which is currently not the case. 

Removal  of  all  market  access  restrictions  between  the  EU  and  Georgia  will  not  only 
attract  new  entrants  to  the  market  and  create  opportunities  to  operate  to  underserved 
airports, but will also facilitate consolidation between EU air carriers. 

The Agreement secures for all EU air carriers access to commercial opportunities, such 
as the possibility to freely establish prices. One further objective of the mandate is to 
create a level playing field between all EU and Georgian air carriers, and this requires 
strong regulatory co-operation which can only be delivered at Union level. 

The proposal therefore complies with the subsidiarity principle. 

•  Proportionality principle 

The proposal complies with the proportionality principle for the following reason(s). 

A Joint Committee will be established to discuss matters related to the implementation 
of  the  Agreement.  The  Joint  Committee  will  foster  expert-level  exchanges  on  new 
legislative  or  regulatory  initiatives  or  developments  and  consider  potential  areas  for 
further  development  of  the  Agreement.  The  Joint  Committee  will  be  composed  of 
representatives of the Commission and the Member States. 

Furthermore,  Member  States  will  continue  to  carry  out  the  traditional  administrative 
tasks they execute in the context of international air transport, but under common rules 
applied uniformly.  

•   

•  Choice of instruments 

Proposed instruments: international agreement 

Other means would not be adequate for the following reason(s). 

External aviation relations can only be given effect through international agreements. 

4. 

Budgetary implication 

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The proposal has no implication for the Union budget. 

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2010/0184 (NLE) 

Proposal for a 

Decision of the Council and the representatives of the Governments of the Member 
States of the European Union, meeting within the Council 

On the signature and provisional application of the Common Aviation Area Agreement 
between the European Union and its Member States, of the one part, and Georgia, of the 
other part 

THE COUNCIL OF THE EUROPEAN UNION AND THE REPRESENTATIVES OF THE 
GOVERNMENTS OF THE MEMBER STATES MEETING WITHIN THE COUNCIL 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union  and  in  particular 
Article 207 (5), in conjunction with Article 218 paragraphs (2), (5) and (7) thereof 

Whereas 

(1) 

(2) 

(3) 

(4) 

the Commission has negotiated on behalf of the Union and of the Member States an 
Common  Aviation  Area  Agreement  with  Georgia  (hereinafter,  the  “Agreement”)  in 
accordance  with  the  Council  Decision  authorising  the  Commission  to  open 
negotiations; 

the Agreement was initialled on 5 March 2010; 

the  Agreement  negotiated  by  the  Commission  should  be  signed  and  applied 
provisionally by the Union and the Member States, subject to its possible conclusion at 
a later date; 

it is necessary to lay down procedural arrangements for deciding, if appropriate, how 
to discontinue the provisional application of the Agreement. It is also necessary to lay 
down appropriate procedural arrangements for the participation of the Union and the 
Member States in the Joint Committee set up under Article 22 of the Agreement and in 
the dispute settlement procedures provided in Article 23 of the Agreement, as well as 
for implementing certain provisions of the Agreement concerning security and safety. 

HAVE DECIDED AS FOLLOWS:  

Article 1 (Signature) 

1. 

The signing of the Common Aviation Area Agreement between the European Union 
and its Member States, of the one part, and Georgia, of the other part, (hereinafter the 
Agreement),  is  hereby  approved  on  behalf  of  the  Union,  subject  to  a  Council 
Decision concerning the conclusion of the Agreement. The text of the agreement is 
attached to this Decision. 

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2. 

The  President  of  the  Council  is  hereby  authorised  to  designate  the  person(s) 
empowered to sign the Agreement on behalf of the Union, subject to its conclusion. 

Article 2 (Provisional application) 

Pending  its  entry  into  force,  the  Agreement  shall  be  applied  on  a  provisional  basis  by  the 
Union and by the Member States, in accordance with the application of national law, from the 
first day of the month following the date of the latest note of which the Parties have notified 
each  other  of  the  completion  of  the  procedures  necessary  to  provisionally  apply  the 
Agreement. 

Article 3 (Joint Committee) 

1. 

2. 

3. 

4. 

1. 

2. 

The  European  Union  and  the  Member  States  will  be  represented  in  the  Joint 
Committee established under Article 22 of the  Agreement  by  representatives  of  the 
European Commission and the Member States.  

The  position  to  be  taken  by  the  European  Union  and  its  Member  States  within  the 
Joint Committee with respect to matters of exclusive competence of the EU that do 
not require the adoption of a decision having legal effect will be established by the 
European  Commission  and  will  be  notified  in  advance  to  the  Council  and  the 
Member States. 

For Joint Committee decisions concerning matters that fall within the competence of 
the EU, the position to be taken by the European Union and its Member States will 
be  adopted  by  the  Council,  acting  by  qualified  majority  on  a  proposal  from  the 
European Commission, unless the applicable voting procedures set down in the EU 
Treaties provide otherwise. 

For  Joint  Committee  decisions  concerning  matters  that  fall  within  Member  States' 
competence, the position to be taken by the European Union and its Member States 
will  be  adopted  by  the  Council,  acting  by  unanimity,  on  a  proposal  from  the 
European Commission or from Member States, unless a Member State has informed 
the  General  Secretariat  of  the  Council  within  one  month  of  the  adoption  of  that 
position that it can only consent to the decision to be taken by the Joint Committee 
with the agreement of its legislative bodies. 

Article 4 (Settlement of Disputes) 

The  Commission  shall  represent  the  Union  and  the  Member  States  in  dispute 
settlement proceedings under Article 23 of the Agreement.  

The  decision  to  suspend  the  application  of  benefits  pursuant  to  Article  23  of  the 
Agreement shall be taken by the Council on the basis of a Commission proposal. The 
Council shall decide by qualified majority. 

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3. 

1. 

2. 

3. 

Any  other  appropriate  action  to  be  taken  under  Article  23  of  the  Agreement  on 
matters  which  fall  within  the  EU  competence  shall  be  decided  upon  by  the 
Commission,  with  the  assistance  of  a  Special  Committee  of  representatives  of  the 
Member States appointed by the Council.  

Article 5 (Information to the Commission) 

Member  States  shall  inform  in  advance  the  Commission  of  any  decision  to  refuse, 
revoke, suspend or limit the authorisation of an airline of Georgia that they intend to 
adopt under Article 5 of the Agreement. 

Member  States  shall  inform  the  Commission  immediately  of  any  requests  or 
notifications  made  or  received  by  them  under  Article  14  (Aviation  safety)  of  the 
Agreement. 

Member  States  shall  inform  the  Commission  immediately  of  any  requests  or 
notifications  made  or  received  by  them  under  Article  15  (Aviation  security)  of  the 
Agreement. 

Done at Brussels, […] 

For the Council 
The President 
[…] 

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