COMMUNICATION FROM THE COMMISSION Developing a Common Aviation Area with the Republic of Moldova
Date: 2011-05-02
Institutions: European Commission
Subjects: Moldova, air space, air traffic, cooperation agreement, cooperation policy, transport policy

EUROPEAN COMMISSION 

Brussels, 2.5.2011 
COM(2011) 240 final 

COMMUNICATION FROM THE COMMISSION 

Developing a Common Aviation Area with the Republic of Moldova 

 
 
 
 
  
 
COMMUNICATION FROM THE COMMISSION 

Developing a Common Aviation Area with the Republic of Moldova 

1. 

INTRODUCTION  

In  its  2005  Communication  “Developing  the  agenda  for  the  Community’s  external 
aviation policy”1, the Commission highlighted the importance of creating a Common 
Aviation  Area  with  its  Eastern  and  Southern  neighbours.  The  ultimate  objective  of 
such a Common Aviation Area is to create a large and open aviation market that is 
based on common rules. In June 2005, the Council of the European Union supported 
this  objective  and  welcomed  the  progress  made  by  incorporating  EU  neighbouring 
countries into such a framework.2 

The  Commission  analysed  the  implementation  of  this  process  in  its  2008 
Communication “Common aviation area with the Neighbouring Countries by 2010: 
progress  report".3  It  concluded  that  this  process  has  shown  positive  results  and 
should be accelerated.  

The enlargement of the European Union of 2004 and 2007 has further reinforced the 
interdependence  between  the  EU  and  its  Eastern  and  Southern  neighbours.  In  June 
2006,  the  EU  and  its  Member  States  signed  the  European  Common  Aviation  Area 
agreement  (ECAA)  with  the  Western  Balkan  countries.  This  was  followed  by  the 
signature  of  the  first  Euro-Mediterranean  Aviation  Agreement  with  Morocco  in 
December  2006.  In  December  2010,  Common  Aviation  Area  agreements  were 
signed  with  Georgia  and  Jordan  and  negotiations  are  still  ongoing  with  Ukraine, 
Lebanon, Tunisia and Israel.  

The creation of a wider Common Aviation Area creates benefits in various respects. 
It supports the 

–  Implementation  of  the  European  Neighbourhood  Policy  by  facilitating  the 
development of an integrated aviation market and the creation of better transport 
links between all countries involved;  

–  Economic development of countries that have a perspective to become a member 

of the European Union; 

–  Promotion of high-level European aviation standards and thereby helps to secure 

high levels of aviation safety and security across the wider region;  

–  Institutional  cooperation  between  the  responsible  authorities  such  as  on  aviation 

safety;  

1 
2 

3 

COM (2005) 79 final, 11 March 2005 
Council  of  the  European  Union  from  27  June  2005:  “Conclusions  on  developing  the  agenda  for  the 
Community’s external aviation policy”  
COM (2008) 596 final, 1 October 2008 

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–  Future  development  of  the  overall  European  aviation  industry  by  providing  a 

coherent regulatory framework for an enlarged market place. 

This  Communication  addresses  the  specific  issue  of  aviation  relations  between  the 
EU  and  the  Republic  of  Moldova  (hereafter  Moldova).  Given  its  geographical 
location, good air transport connections between Moldova and the EU are crucial for 
the country's economic development.  

In  April  2010,  the  Moldovan  government  expressed  its  wish  to  start  negotiating  a 
Common  Aviation  Area  agreement  between  the  EU  and  Moldova.  Following  this 
request, the Commission services assessed the current situation of the Moldovan air 
transport sector and its oversight structures. In addition, an economic analysis of the 
possible impact of concluding such an agreement was undertaken.  

Based  on  this  work  which  is  summarised  in  this  Communication,  the  Commission 
recommends the Council to authorise the Commission to negotiate a comprehensive 
Common  Aviation  Area  Agreement  with  Moldova.  Following  the  logic  of  the 
agreements between the EU and other neighbouring countries, this should be based 
on  a  combination  of  gradual  market  opening  with  a  parallel  process  of  regulatory 
cooperation  and  gradual  harmonisation.  Priority  areas  should  be  market  opening, 
freedom of establishment, equal conditions of competition and common rules in the 
areas  of  aviation  safety,  security,  air  traffic  management,  social  conditions  and 
environmental protection.  

2. 

EU-MOLDOVA: POLITICAL RELATIONS  

Over the last decade, the EU and Moldova have established a close relationship:  

–  The EU–Moldova Partnership and Cooperation Agreement (PCA) was signed in 
1994 and entered into force in 1998.4 It covers a broad range of issues including 
trade, economic cooperation and law approximation. According to the provisions 
on law approximation (Article 50 PCA), Moldova shall endeavour to ensure that 
its  legislation  (including  in  the  transport  sector)  will  gradually  be  made 
compatible with that of the EU. The transport area and the need for Moldova to 
restructure  and  modernise  its  transport  systems  to  strengthen  EU-Moldova 
cooperation  is  particularly  highlighted  in  Article  62 of  the  PCA.  The  need  to 
cooperate  on  modernising  airports  and  air  traffic  management  and  to  promote 
trans-European  inter-connections  is  particularly  highlighted.  Negotiations  on  a 
future  EU–Moldova  Association  Agreement,  which  is  foreseen  to  replace  the 
PCA,  were  launched  in  January  2010.  The  aim  of  this  Agreement  is  to  further 
deepen  political  association  and  economic  integration  between  the  EU  and 
Moldova. The integration objective will be pursued, among others, in the transport 
area. 

–  In  parallel  to  this  process,  the  European  Neighbourhood  Policy  (ENP)  has  been 
developed  since  2004.  It  aims  at  strengthening  the  prosperity,  stability  and 
security of the EU's neighbouring countries and at avoiding the emergence of new 
dividing  lines  with  the  enlarged  EU.  This  policy  is  implemented  through 

4 

OJ L 181/1998, p. 3, 24/06/1998  

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European  Neighbourhood  Action  Plans  (ENAPs)  which  are  agreed  between  the 
EU and each partner country individually. The EU-Moldova ENAP was adopted 
in  2005  and  since  then  the  Commission  has  each  year  reviewed  the  progress 
made.  ENAP  provisions  on  transport  include  the  development  of  the  aviation 
sector and the request to better integrate Moldova into the European air transport 
market. The ENAP lists the measures that should be implemented in the aviation 
sector (in particular closer cooperation in the areas of aviation safety, security and 
air traffic management). The concept of a more ambitious partnership between the 
European Union and the partner countries is also reflected in the Joint Declaration 
of the Prague Eastern Partnership Summit, signed on 7 May 2009, in Prague. 

–  In  2007,  Moldova  presented  a  "National  Development  Strategy  (NDS)  2008-
2011"  that  includes  a  clear  commitment  of  Moldova  to  incorporate  the  acquis 
communautaire  into  its  national  legislation  and  to  ensure  its  enforcement.  As 
regards air transport, the NDS calls for enhancing safety, airport capacity and the 
quality of services which are offered to passengers. Besides, Moldova adopted a 
"Civil Aviation Development Strategy for 2007-2012"5 that provides a framework 
for  the  implementation  of  related  measures  in  all  major  aviation  areas.  Besides, 
the Moldovan "Government Programme 2009 to 2013" includes specific priorities 
as regards aviation such as the creation of a liberalised air transport market with 
the view to attract low-cost airlines.  

–  More  specifically  on  aviation,  Moldova  is  actively  participating  in  various  pan-
European aviation structures. It has been member of the European Civil Aviation 
Conference (ECAC) since 1996 and of Eurocontrol since 2000. In aviation safety, 
it participates in the SAFA6 programme on the basis of working arrangement with 
the European Aviation Safety Agency (EASA) signed in 2006. Another working 
arrangement  between  EASA  and  Civil  Aviation  Authority  of  Moldova  in  the 
framework of the transition of the Joint Aviation Authorities was signed in 2009. 
The  "Horizontal  Agreement"  between  the  EU  and  Moldova  which  brings  the 
bilateral agreements between the Member States and Moldova in line with EU law 
was signed in 2006.7 

As  regards  the  progress  achieved,  the  Commission  issued  progress  reports  on  the 
implementation of PCA and ENAP. The 2010 report8 (on implementation of the PCA 
and  ENAP  in  2009)  already  indicated  that  Moldova  is  a  potential  candidate  to 
become part of the Common Aviation Area and acknowledged that the signature of a 
cooperation  agreement  with  EASA  was  an  important  step  in  integrating  Moldova 
into the European aviation safety system.  

5 

6 
7 
8 

Government  Decision  No.  987  on  the  approval  of  the  Civil  Aviation  Strategy  for  2007-2012  of  30 
August 2007. 
Safety Assessment of Foreign Aircraft 
OJ L 126/2006, p.24, 13/05/2006 
http://ec.europa.eu/world/enp/pdf/progress2010/sec10_523_en.pdf 

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3. 

EU-MOLDOVA: ECONOMIC RELATIONS AND ITS IMPACT ON AVIATION 

Given the distance to major European cities, its location as a landlocked country and 
the relatively poor land transport infrastructure, aviation is the single most important 
mode of transport to link Moldova to most EU Member States. 

Economic relations between Moldova and the EU have significantly developed over 
the  last  decade.  According  to  the  Moldovan  National  Statistical  Bureau,  exports  of 
goods to the EU grew by 6% from January to October 2010 (compared to the same 
period in 2009) to €439 million while imports  to Moldova from the EU increased by 
19.1%, to €1 billion. This br ings Moldova's overall trade deficit with the EU to €561 
million (an increase of 30.9%). The EU is Moldova's most important trading partner 
and its importance has increased since Romania joined the EU in 2007. In 2008, the 
EU granted additional Autonomous Trade Preferences for Moldova9 and this has had 
positive  effects  on  trade  between  the  EU  and  Moldova.  The  future  EU-Moldova 
Association  Agreement  contains  the  aim  to  establish  a  Deep  and  Comprehensive 
Free Trade Area, if and when Moldova would be ready to implement it and to sustain 
its  effects.  It  is  expected  that  this  would  give  further  impetus  to  trade  relations 
between the EU and Moldova. 

Moldova's  relatively  small  population  of  3.6  Million  people  and  its  low  GDP  per 
capita make it a relatively small (but growing) aviation market.10  

Air  traffic  between  Moldova  and  the  EU  comprises  mainly  passenger  traffic  (the 
volume  of  cargo  carried  between  the  EU  and  Moldova  is  relatively  low). 
International air transport to and from Moldova is focused on Chisinau International 
Airport. The airport's transport figures have grown from about 200.000 passengers in 
2000  to  more  than  900.000  passengers  in  2010  which  represents  an  annual  growth 
rate  of  about  14%.11  Chisinau  International  Airport  has  recently  launched  an 
important investment programme to increase its capacity and to modernise its overall 
infrastructure. The EU and the EBRD supported this programme in the framework of 
the  Neighbourhood  Investment  Facility.  In  2010,  it  was  the  first  airport  of  the 
Commonwealth  of  Independent  Countries  (CIS)  that  received  the  Airport  Carbon 
Accreditation in recognition of its efforts to reduce CO2 emissions.  

Traffic  to  the  EU  accounts  for  about  two  thirds  of  departing  passengers  from 
Chisinau.  EU-Moldova  passenger  traffic  is  concentrated  on  links  with  a  limited 
number of EU Member States. In 2009, the top five markets (Italy – 34%, Romania – 
18%, Germany – 13%, Hungary – 9% and Austria – 8%) counted for more than 80% 
of  total  EU-Moldova  passenger  traffic.  This  shows  Moldova's  close  economic 
relations with Romania and Italy.  

The  city  pair  with  the  highest  passenger  volume  is  Chisinau-Timisoara  (Romania) 
with  about  40,000  passengers,  followed  by  Chisinau-Frankfurt  with  more  than 
32,000  passengers  and  Chisinau-Rome  with  about  22,000  passengers  in  2009. 

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11 

Regulation (EC) No 55/2008, OJ L 20, p.1, 24/1/2008 
According to IMF estimates, Moldova has a GDP per capita of €1,160 (in 2010). 
Departing passengers from Chisinau. All transport figures stem from a study that was contracted by the 
Commission:  Steer  Davies  Gleave:  Study  on  the  economic  benefit  of  a  common  aviation  area 
agreement between the EU and the Republic of Moldova. London, January 2011 

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Outside the EU, Chisinau-Moscow is the city pair with the highest passenger demand 
with  almost  48,000  passengers,  followed  by  Chisinau-Istanbul  with  about  41,000 
passengers. 

Moldova has negotiated air service agreements (ASAs) with about twenty countries 
out  of  which  sixteen  are  EU  Member  States  (Austria,  Bulgaria,  Cyprus,  Czech 
Republic,  Estonia,  France,  Germany,  Greece,  Hungary,  Italy,  Latvia,  Lithuania, 
Poland,  Portugal,  Romania  and  the  UK).  The  ASAs  with  EU  Member  States  are 
typically rather restrictive (e.g. as regards the approval of routes, frequencies, aircraft 
capacities  or  schedules).  Most  agreements  only  allow  for  single  designation  of  one 
air  carrier  by  each  side.  The  current  system  of  bilateral  ASAs  between  the 
EU Member States  and  Moldova  therefore  distorts  patterns  of  traffic  with  negative 
effects on airlines and consumers.  

It  is,  however,  important  to  note  that  in  July  2010  only  six  EU  carriers  served  the 
Moldovan  market:  airBaltic  from  Riga  (Latvia),  Austrian  Airlines  from  Vienna 
(Austria),  Carpatair  from  Timisoara  and  Tarom  from  Bucharest  (Romania), 
Lufthansa  from  Munich  (Germany)  as  well  as  Meridiana  from  Milan  and  Verona 
(Italy).  The  market  share  of  these  EU  airlines  on  flights  to  Moldova  was  37%. 
Moldovan carriers account for more than 60% of the EU-Moldova aviation market. 

4. 

CIVIL AVIATION SECTOR IN MOLDOVA 

There are two Moldovan airlines that operate routes from/to the EU: the national flag 
carrier Air Moldova and privately owned Moldovan Airlines:  

–  Air  Moldova  operates  a  relatively  modern  fleet  to  EU  destinations  (three 
Airbus A320  large  civil  aircraft  and  two  Embraer 190  regional  aircraft).  As  of 
January 2010, Air Moldova flew to a total of 13 destinations, 10 of them located 
in  EU  Member  States  (Austria,  Bulgaria,  Cyprus,  the  Czech  Republic,  France, 
Germany, Greece, Italy, Romania, and Spain). 

–  Moldovan  Airlines  is  a  relatively  small  company  and  operates  two  regional 
aircraft  on  routes  to  Hungary  and  Romania  (Timisoara).  The  airline  cooperates 
with its Romanian sister company, Carpatair, which has a hub at Timisoara. 

Besides, there are other Moldovan carriers that operate mainly CIS-designed aircraft 
to  other  destinations  than  the  EU.  (Air  Moldova  also  operates  such  aircraft  but 
mainly to non-EU destinations.) 

For  the  time  being,  the  most  important  gateways  to  the  international  air  transport 
network for passengers from Moldova are Frankfurt (through Air Moldova), Munich 
(through Lufthansa) and Vienna (through Air Moldova and Austrian Airlines). 

Air fares from Chisinau to EU destinations (and vice-versa) are relatively high. This 
might be due to the rather restrictive ASAs and the fact that Chisinau is not served by 
low  cost  carriers.  There  is  evidence  that  therefore  some  Moldovan  air  transport 
demand is diverted to airports in the neighbouring countries Romania and Ukraine.  

Air  Navigation  Services,  including  meteorological  services  and  aeronautical 
information in the Moldovan airspace are provided by the state owned Moldovan Air 

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Traffic Services Agency (MOLDATSA), which is separated from the Civil Aviation 
Administration.  Moldova  is  a  member  of  Eurocontrol  and  a  partner  in  the  regional 
"ATM Co-operation in South-Eastern Europe (ACE)" initiative along with Romania, 
Turkey  and  Bulgaria.  Moldova  is  aligning,  wherever  possible,  its  national  aviation 
legislation/environment with the Single European Sky policy. 

The  Civil  Aviation  Administration  of  the  Republic  of  Moldova  (CAA)  administers 
and  regulates  the  entire  civil  aviation  sector.  The  CAA  operates  under  the  political 
oversight of the Moldovan Transport Ministry. 

5. 

BENEFITS OF AN EU – MOLDOVA COMMON AVIATION AREA AGREEMENT 

The  creation  of  the  EU's  single  aviation  market  since  the  early  1990s  has 
significantly  contributed  to  make  the  sector  more  dynamic  and  efficient  and  has 
created large economic and social benefits.  

The conclusion of Common Aviation Area agreements with the Union's Eastern and 
Southern neighbouring countries has proven that similar positive effects on transport 
volumes and efficiency can also be achieved for these markets. In this respect annual 
growth-rates of about 12% were achieved between the EU and the Western Balkans 
since  the  liberalisation  of  this  market  in  2006  and  2010  (available  seats).  Similar 
effects can be expected for the EU-Moldova market.  

To  measure  such  effects  more  precisely,  the  Commission  undertook  an  economic 
analysis  of  the  possible  effects  of  concluding  an  EU-Moldova  Common  Aviation 
Area  agreement.12  The  study  forecasts  annual  growth  rates  of  EU-Moldovan  air 
transport  of  around  15%  for  the  period  2010-2015.13  In  a  nutshell,  the  respective 
benefits for Moldova on the one hand and the EU on the other hand can be described 
as follows: 

–  The  economic  benefit  of  such  an  agreement  to  Moldova  is  estimated  at  around 
€ 17 Mio p.a.  (mainly  due  to  lower  air 
fares,  increased  air  travel  and  the 
associated economic activity).14 The analysis also shows that air fares on popular 
routes  (such  as  those  to  Italy)  will  probably  drop  significantly  as  a  result  of 
increased competition.  

–  Due to the size of the market, the economic benefits of such an agreement for the 
EU  will, however, be relatively  small.  On the  other  side, some  EU airlines  have 
reported problems with the rather restrictive ASAs in their day-to-day operations. 
Experience  shows  that  the  implementation  mechanism  of  similar  Common 
Aviation  Area  agreements  helps  solving  such  doing  business  issues  (mainly 
through  the  Joint  Committee)  as  it  tends  to  be  easier  for  European  carriers  to 
address  these  questions  collectively  (rather  than  individually).  Besides,  an  EU-

12 

13 

14 

Steer Davies Gleave: Study on the economic benefit of a common aviation area agreement between the 
EU and the Republic of Moldova. London, January 2011. 
This must be measured against a forecast of annual air traffic growth rates of around 8% in the same 
period in a no-change scenario. 
If  one  deducted  the  environmental  impact  and  the  additional  resources  needed  to  cope  with  the 
administrative work stemming from the implementation of the acquis, the economic benefit to Moldova 
is estimated at around € 10 Mio p.a. 

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Moldova  Common  Aviation  Area  Agreement  would  create  new  market 
opportunities  for  air  carriers  in  the  EU  which  would  like  to  start  operations  to 
Moldova  but  currently  do  not  have  the  necessary  traffic  rights.  It  could  also 
facilitate  the  integration  of  Moldovan  carriers  into  existing  alliances  of  EU  air 
carriers  thus  allowing  for  the  development  of  integrated  products  and  better 
services to passengers and higher efficiency through economies of scale.  

Equally  important  to  these  economic  benefits  are,  however,  overall  political 
considerations as such an agreement would significantly support the objectives of the 
EU's  ENP,  the  Eastern  Partnership  as  well  as  the  PCA  and  the  future  Association 
Agreement with Moldova.  

The strong political call of the Moldovan government to conclude such an agreement 
is an additional important element that must be taken into account.  

An EU-Moldova Common Aviation Area Agreement would establish a level playing 
field for all EU air carriers and allow passengers in all Member States to benefit from 
similar conditions and increased traffic between the EU and Moldova and vice versa. 
In addition, an EU–Moldova Common Aviation Area Agreement would provide the 
legal  basis  for  the  establishment  of  air  services  from  those  Member  States  which 
currently do not have bilateral ASAs with Moldova. 

6. 

CONCLUSIONS 

As  a  consequence  of  market  opening,  travel  opportunities  for  EU  and  Moldovan 
passengers  would  improve.  The  number  of  direct  connections  between  the  EU  and 
Moldova  as  well  as  the  overall  number  of  flights  is  expected  to  increase  trade  and 
tourism flows. There will be economic benefits for both, EU and Moldovan airlines 
and airports.  

It will be important to ensure that the opening and the integration of the markets is 
undertaken  in  a  balanced  manner  taking  into  account  other  important  policy 
objectives and mitigating potential adverse impacts. In this context it will be essential 
to ensure that the process of market opening is accompanied by a parallel process of 
regulatory co-operation and/or convergence. This is particularly important in crucial 
areas such as safety, security, environmental protection and competition law. 

Open markets need a framework that ensures fair competition and high standards for 
safety  and  security.  With  regard  to  environmental  issues,  the  agreement  must  be 
consistent  with  the  EU's  commitment  to  sustainable  development.  It  is  particularly 
important that the agreement does not restrict the EU’s ability to apply regulatory or 
economic  instruments  to  mitigate  unwanted  side-effects  of  growth  in  air  traffic, 
notably  on  the  air  quality  and  noise  levels  around  airports  and  through  the 
contribution  to  global  climate  change.  In  the  field  of  air  traffic  management,  the 
possibility  to  extend  the  Single  European  Sky  to  Moldova  would  contribute  to 
enhance  current  safety  standards,  optimise  efficiency  and  capacity  and  minimise 
delays.  

A comprehensive mandate for the negotiations with Moldova would be based on two 
equally important strands: on the one side market opening and liberalisation and on 

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the other hand regulatory harmonisation of safety and security standards beyond the 
EU  borders.  In  this  respect  the  conclusion  of  an  EU-Moldova  Common  Aviation 
Area  agreement  would  make  a  major  contribution  to  reaching  the  objectives  of  the 
European  Neighbourhood  Policy,  the  Eastern  Partnership  and  the  EU–Moldova 
Partnership and Cooperation Agreement. 

In the light of the above, the Commission proposes the negotiation and conclusion of 
a comprehensive open aviation agreement with Moldova and invites the Council to 
authorise  the  Commission  to  enter  into  negotiations  on  such  an  agreement.  The 
negotiations  will  be  conducted  by  the  Commission  services,  fully  involving  the 
European  External  Action  Service  (EEAS),  taking  duly  into  account  Council 
Decision 2010/427/EU.  

The  Commission  will  work  closely  together  with  Member  States  and  all  relevant 
stakeholders  in  further  developing  and  achieving  the  objectives  set  out  in  the 
proposed Council Decision.  

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