Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on safeguarding competition in air transport, repealing Regulation (EC) No 868/2004
Date: 2017-06-08
Institutions: Directorate-General for Mobility and Transport, European Commission
Subjects: agreement (EU), air transport, carriage of passengers, competition policy, control of restrictive practices, equal treatment, international agreement, restriction on competition, third country

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   EUROPEAN COMMISSION  Brussels, 8.6.2017  COM(2017) 289 final 2017/0116 (COD)   Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on safeguarding competition in air transport, repealing Regulation (EC) No 868/2004 (Text with EEA relevance) {SWD(2017) 182 final} {SWD(2017) 183 final}  
 
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

Aviation plays a fundamental role in the European Union economy. With around 918 million 
passengers  travelling  by  air  in  the  European  Union  and  more  than  1.45  billion  passengers 
departing  or  arriving  at  EU  airports  in  2015,  aviation  makes  a  vital  contribution  to  the 
connectivity of the Union both internally between Member States and with third countries in 
the rest of world. Air transport links people, businesses and regions and it plays a crucial role 
in  EU  integration  and  competitiveness.  It  also  contributes  to  Union’s  regional  and  social 
cohesion.  Furthermore,  aviation  makes  a  vital  contribution  to  economic  growth  and 
employment. In 2014, the sector supported the employment of up to 9.3 million people and 
accounted for over €510 billion of EU Gross Domestic Product. It also made other sectors of 
the  economy  stronger,  as  studies  show  that  one  euro  of  value  added  in  the  air  transport 
industry creates almost three euros of value added in the overall economy. Similarly, one new 
job in the air transport industry creates more than three jobs across the wider economy1. 

The Union's overall connectivity relies to a great extent on air services performed by Union 
air carriers, with an average of 7 million flights operated by those carriers per year to or from 
Union airports. The corresponding figure for third country air carriers amounts to 1.3 million 
flights per year2. However, as far as connections between the EU and the rest of the world are 
concerned, the market is served in nearly equal shares by Union air carriers (49.9% of flights 
and around 239 million passengers carried in 2015) and third country air carriers (50.1% of 
flights and around 240 million passengers carried in 2015)3. 

The  liberalisation  and  deregulation  of  international  air  transport  has  fostered  unprecedented 
competition within the Union market and globally. Global competition is expected to further 
intensify in coming years with projected international aviation growth of around 5% per year 
until 20304.  

However, in the absence of an international framework that sets out the conditions governing 
competition  among  air  carriers5,  practices  regarding  the  treatment  of  air  carriers  may  differ 
from  one  country  to  another  and  affect  competition.  This  is  not  the  case  within  the  Union 
where the EU rules ensure that all carriers, European and non-European, are granted the same 
rights and same opportunity of accessing air transport related services. This may however be 
the case in some third countries where discriminatory practices and subsidies6 may give unfair 
competitive  advantages  to  air  carriers  from  those  third  countries.  The  Commission  has 
recognised  that  "while  EU  airlines  are  ultimately  responsible  themselves  for  their 

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6 

Communication  from  the  Commission  'An  Aviation  Strategy  for  Europe',  COM(2015)598  final, 
7.12.2015. 
Source: OAG Summer schedules for the year 2016. 
Idem. 
Communication  from  the  Commission  'The  EU's  External  Aviation  Policy  -  Addressing  Future 
Challenge', COM(2012)556, 27.09.2012. 
Notably,  no  specific  multilateral  rules  have  emerged  within  ICAO,  and  air  transport  services  have 
largely  been  excluded  from  the  agreements  of  the  World  Trade  Organization  (WTO)  (cf.  Marrakech 
Agreement,  Annex  1B  General  Agreement  on  Trade  in  Services  (GATS),  Annex  on  Air  Transport 
Services. The GATS does apply to measures affecting (a) aircraft repair and maintenance services; (b) 
the selling and marketing of air transport services; and (c) computer reservation systems. 
This  only  refers  to  subsidies  which  are  selective  as  defined  under  Article  2(h)  of  this  proposed 
Regulation. 

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competitiveness  and  must  continue  to  adapt  their  products  and  business  models  to  the 
prevailing market conditions (…) it is equally important that competition, both within the EU 
and externally, is based on openness, reciprocity and fairness and that it is not distorted by 
unfair practices"7.  

Indeed, unfair practices, if they are allowed to persist, may lead in the longer run to dominant 
or even monopolistic situations in the aviation market, meaning less choice, less connectivity 
and higher prices for EU citizens.  

Therefore, in cases where Union connectivity and competition are put at risk, the Union must 
be able to act effectively to ensure an open and competitive market. 

Fair  competition  conditions  between  air  carriers  can  be  addressed  in  the  context  of  air 
transport or air  services agreements. However, most air transport  or air services  agreements 
with third countries do not so far provide for corresponding rules.  
Regulation (EC) No 868/20048 was intended to address these issues through unilateral Union 
action. However, this instrument has never been applied, and some of its features make it very 
unlikely  that  it  ever  be  (concretely)  applied.  This  therefore  leaves  the  Union  without  an 
effective instrument to  ensure fair competition between Union air carriers  and third country 
air carriers. Indeed, outside subsidisation, Regulation (EC) No 868/2004 exclusively applies 
to so-called unfair pricing practices. These can only be found to exist where a third country 
carrier charges "air fares which are sufficiently below those offered by competing Community 
air carriers to cause injury", evidence of which is difficult to administer. While the finding of 
"unfair  pricing  practices"  also  requires  that  the  third  country  carrier  has  received  a  non-
commercial advantage, the existence of such advantage alone is not sufficient to trigger Union 
action. Moreover, Regulation (EC) No 868/2004 fails to provide for a dedicated EU internal 
procedure  in  respect  of  obligations  contained  in  air  transport  or  air  services  agreements,  to 
which the Union is a party, and that are intended to ensure fair competition, i.e. where such 
obligations have been violated. Lastly, the rules regarding the opening of an investigation are 
quite  restrictive.  Notably,  a  proper  right  to  complain  to  the  Commission  is  confined  to  the 
"Community industry", defined as "the Community air carriers supplying like air services as 
a  whole  or those  of  them  whose  collective  share  constitutes  a  major  proportion  of  the  total 
Community  supply  of  those  services".  Neither  Member  States  nor  individual  air  carriers  are 
conferred a position as complainants in their own right. 
In  its  Communication  on  an  Aviation  Strategy  for  Europe9,  the  Commission  stated  its 
intention to assess the effectiveness of Regulation (EC) No 868/2004 with a view to revising 
or replacing it with a more effective instrument that would ensure fair competition conditions 
between all carriers and thereby safeguard connectivity to and from the Union. The Aviation 
Strategy also underlines the importance of pursuing the negotiation of fair competition clauses 
in  EU  and  Member  States'  bilateral  aviation  agreements  and  making  progress  at  the 
multilateral level in parallel to improving the effectiveness of this instrument. 

The  objective  to  revise  or  replace  Regulation  (EC)  No  868/2004  is  shared  by  the  Council 
which,  in  its  Conclusions  of  20  December  201210,  acknowledged  that  "Regulation  (EC)  No 
868/2004  has  proven  not  to  address  adequately  the  specific  characteristics  of  the  aviation 

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Commission Communication 'The EU's External Aviation Policy - Addressing Future Challenge'. 
Regulation  (EC)  No  868/2004  of  the  European  Parliament  and  of  the  Council  of  21  April  2004 
concerning  protection  against  subsidisation  and  unfair  pricing  practices  causing  injury  to  Community 
air carriers in the supply of air services from countries not members of the European Community (OJ L 
162, 30.04.2004, p.1). 
Commission Communication 'An Aviation Strategy for Europe'. 
Council Conclusions on the EU's External Aviation Policy 'Addressing Future Challenges', 20.12.2012. 

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services  sector"  and  supported  "the  Commission's  intention  to  analyse  (…)  possible  options 
for a more effective  instrument to safeguard open and fair competition and its intention, on 
that  basis,  to  present  a  proposal  for  a  revision  or  replacement  of  Regulation  (EC)  No 
868/2004". 

This approach is equally shared by the European Parliament, which called upon "the revision 
of  the  current  Regulation  868/2004  in  order  to  safeguard  fair  competition  in  EU  external 
aviation relations and reinforce the competitive position of the EU aviation industry, ensure 
reciprocity and eliminate unfair practices (…)"11. 

• 

Consistency with existing policy provisions in the policy area 

This  initiative  is  consistent  with  the  Commission  Communication  on  the  Union's  External 
Aviation Policy which states that "it is both important and legitimate that the EU is able to 
act effectively internationally to safeguard the competitiveness of EU airlines against unfair 
competition and/or practices wherever they may come from". 

This initiative is listed among the actions presented in the Commission's Communication on 
an Aviation Strategy for Europe and is consistent with the EU's policy of fair competition. 

This initiative is based on considerations similar to those of Article 12 of Council Regulation 
(EEC) No 95/9312 on common rules for the allocation of slots at Community airports and of 
Article  20  of  Council  Directive  96/67/EC13  on  access  to  the  groundhandling  market  at 
Community  airports.  Both  of  those  rules  provide  that  actions  can  be  taken  when  third 
countries grant preferential treatment to their air carriers compared to Union air carriers with 
respect to the allocation of slots at airports or with respect to access to the groundhandling or 
self-handling markets. 

This  initiative  is  without  prejudice  to  the  division  of  competencies  between  the  Union  and 
Member States, in accordance with Union law as interpreted by the Court of Justice. 

• 

Consistency with other Union policies 

This  initiative  is  intended  to  ensure  that  aviation  takes  place  under  conditions  of  fair 
competition and therefore adds to the contribution this sector can make to the fulfilment of the 
Commission's priority objectives in respect of supporting job creation and sustainable growth. 

The  initiative  also  contributes  to  reinforcing  Union's  influence  in  the  world  and  thus  to  the 
fulfilment of corresponding strategic objectives, namely of the Union being a stronger global 
actor  and  developing  freer  trade  without  sacrificing  Europe’s  standards.  It  is  notably 
consistent with the Commission’s approach in  respect of negotiations on air transport or  air 
services agreements with third countries, favouring fair competition, as well as high levels of 
protection in the labour and social domain. 

This initiative is consistent with the relevant Union policies, including trade and competition 
policies. 

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European Parliament Resolution of 9 September 2015 on the implementation of the 2011 White Paper 
on Transport: Taking stock and the way forward towards sustainable mobility (2015/2005(INI)). 
Council Regulation (EEC) No 95/93 of 18 January 1993 on common rules for the allocation of slots at 
Community airports (OJ L 14, 22.1.1993, p. 1). 
Council Directive 96/67/EC of 15 October 1996 on access to the groundhandling market at Community 
airports (OJ L 272, 25.10.1996, p. 36). 

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2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

This  initiative  is  based  on  Article  100(2)  of  the  Treaty  on  the  Functioning  of  the  European 
Union. That provision permits the adoption of all appropriate provisions for air transport and 
already served as a basis for the adoption of Regulation (EC) No 868/200414.  

Subsidiarity  

• 
Compatibility  with  the  principle  of  subsidiarity  was  recognised  in  the  26th  recital  of 
Regulation (EC) No 868/2004, insofar as it concerned the terms of that Regulation. 

The new central element contained in the proposed Regulation is action in cases of 'violation 
'applicable 
of  applicable  international  obligations'.  The  proposed  Regulation  defines 
international  obligations'  as  obligations  contained  in  an  agreement  to  which  the  Union  is  a 
party. Rights vis-à-vis third countries, under agreements to which the Union is a party, cannot 
be exercised separately by individual Member States. 

Since the objectives sought could not be achieved without action at Union level, such action is 
necessary to this effect and provides an added value compared to actions at national level. 

• 

Proportionality 

The proposed policy choices do not go beyond what is needed to achieve the objective of the 
proposal, namely to ensure fair competition between Union air carriers and third country air 
carriers,  in  the  interest  of  maintaining  conditions  conducive  to  a  high  level  of  Union 
connectivity. 

The  practices  in  question  are  all  capable  of  undermining  fair  competition.  They  are  either 
identified  as  such  in  the  relevant  international  agreements  or  consist  in  subsidies15  or 
discrimination  which,  in  addition,  can  lead  to  the  imposition  of  measures  only  in  case  of 
injury or threat of injury to Union carriers.  

The measures to be adopted under this instrument are also themselves proportionate. Where 
international obligations have been violated, measures are confined to what is available under 
the agreement in question and/or public international law. 

Where measures are imposed in view of subsidies or discrimination causing injury or threat of 
injury to  Union carriers, they may not  go beyond what is  necessary to  offset such  injury  or 
threat of injury. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Stakeholder consultations 

In  accordance  with  the  Commission’s  standards  on  public  consultation,  stakeholders  were 
consulted  through  an  online  public  consultation  on  a  "proposal  for  improved  protection 
against subsidisation and unfair pricing practices" from 29 October 2013 to 21 January 2014. 
Twenty  entities  took  part  in  the  public  consultation,  representing  airlines  (Union  and  non-

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Then Article 80(2) EC. 
This  only  refers  to  subsidies  which  are  selective  as  defined  under  Article  2(h)  of  this  proposed 
Regulation. 

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Union  ones),  airports  and  industry  associations  (Union  and  non-Union  ones),  EU  trade 
unions, Member States and citizens. The limited response to the public consultation should be 
taken  into  account  when  interpreting  the  data.  Nevertheless,  it  provided  a  picture  of  the 
position of various key stakeholders. 

In  addition,  stakeholders  were  consulted  in  the  context  of  the  public  consultation  for  the 
preparation of the Commission Aviation Strategy, which took place between 19 March and 10 
June 2015. The Commission received 233 full questionnaire responses and 41 position papers 
from  stakeholders,  representing  Member  States  and  third  countries,  airlines,  airports, 
groundhandling  companies,  pilots,  aircraft  suppliers  and  manufacturers,  industry  and 
employees' associations, consultancies, academia and citizens. 

The information gathered in the stakeholders' consultations was complemented by studies in 
which stakeholders were also consulted. 

Finally,  the  Commission  held  a  number  of  informal  meetings  with  the  Member  States  and 
with relevant stakeholders (Union and non-Union ones). 

The Impact Assessment includes summaries of the public consultations that were carried out. 

• 

Impact assessment 

The summary sheet of the impact assessment is available at: (to be included when published 
on SG website). 
The  Impact  Assessment  Report  and  an  Executive  Summary  Sheet  were  submitted  to  the 
Regulatory  Scrutiny  Board.  The  Board  initially  issued  a  negative  opinion  on  8  April  2016, 
followed by a positive opinion on 29 July 2016. The report was adjusted in accordance with 
the recommendations from the Board. In particular, the report better substantiates the problem 
to be addressed and more clearly explains how the current rules failed to address this problem. 
The problem identified is better supported with examples of alleged discriminatory practices. 
The report also better explains the legal compatibility with international law and air transport 
agreements with third countries. In addition it focuses more on the impacts on consumers, and 
better  assesses  the  impacts  of  each  policy  options.  Moreover,  the  report  better  presents  the 
views of stakeholders. 
The  positive  opinion  of 
http://www.cc.cec/iab/download?attachmentId=10024. 

the  Regulatory  Scrutiny  Board 

available  here: 

is 

The  impact  assessment  examines  four  policy  options,  including  the  baseline  scenario.  An 
option combining limited revision of the Regulation (EC) No 868/2004  and the adoption of 
interpretative guidelines has been discarded. 
Option  A  (baseline  scenario) consists  in  maintaining  Regulation  (EC)  No  868/2004  without 
repealing it. 
Option  B  combines  increased  international  efforts  at  WTO  and  ICAO  level  with  a  view  to 
promoting the adoption of a multilateral legal framework for fair competition and negotiations 
aiming  at  the  inclusion  of  expanded  fair  competition  clauses  in  air  transport  or  services 
agreements. 
Option  C  provides  for  repealing  Regulation  (EC)  No  868/2004  and  replacing  it  with  a  new 
comprehensive and effective Regulation, inspired by the Trade Barrier Regulation and taking 
into account the specificities of the aviation sector. 
Finally,  option  D  combines  options  B  and  C  and  therefore  consists  in  both  replacing 
Regulation  (EC)  No  868/2004  with  a  new  instrument  and  increased  efforts  on  the 

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international  scene  including  as  regards  the  negotiation  of  air  transport  or  services 
agreements. 

Option  D  offers  an  integrated  approach,  which  is  considered  to  be  the  most  appropriate  to 
address  the  problems  identified.  The  inclusion  of  the  three  complementary  building  blocks 
(international,  fair  competition  clauses  in  agreements,  revision  of  Regulation  (EC)  No 
868/2004)  reinforcing  each  other  creates  synergies,  allows  to  efficiently  safeguarding  EU's 
connectivity  and  supports  an  open  competition  between  all  air  carriers.  For  these  reasons, 
option D is retained as the best policy choice. 

The  economic,  social  and  environmental  impacts  of  option  D  are  analysed  in  the  Impact 
Assessment. Whereas it is not possible to precisely quantify its economic impact, option D is 
expected to bring the greatest economic benefit as it allows EU to compete fairly with third 
countries  air  carriers.  This  option  also  benefits  to  EU  airports  and  passengers  through 
increased  traffic  and  choice.  Overall,  the  European  air  connectivity  is  improved,  therefore 
allowing aviation to continue contributing to Union's growth and employment and positively 
benefiting to passengers, businesses and EU's economy as a whole. On social aspects, option 
D  is  expected  to  contribute  positively  to  direct  employment  of  EU  workers,  especially  at 
airports  and  in  associated  industries.  The  impact  on  indirect  employment  is  expected  to  be 
even more beneficial. Although certain environmental benefits can be expected from option D 
in terms of reduced noise pollution and greenhouse emission thanks to a possible increase in 
direct flights operated by EU carriers, these are generally offset by other factors such as the 
forecast growth of air traffic in the future.  Therefore, the environmental impact of option is 
expected to be neutral. 

This proposed Regulation contributes to the implementation of policy option D while further 
refining its relevant aspects. This refinement leads to the development of two possible tracks: 
the so-called 'violation' track and the so-called 'injury' track. 

4. 

BUDGETARY IMPLICATIONS 

The budgetary  implications are related to the initiation and conduct of investigations by the 
European Commission, and to financial duties.  

Based on experience with similar types of investigations conducted by the Commission, the 
necessary  resources  have  been  assessed  to  be  between  three  and  four  full  time  officers  per 
investigation, for two to three investigations per year. Therefore, this instrument is expected 
to  require  nine  officers  for  its  implementation.  The  costs  of  missions,  including  on-site 
investigations,  should  also  be  anticipated.  The  appropriations  required  for  human  resources 
and  missions  costs  are  expected  to  be  met  through  allocation  which  may  be  granted  to  the 
managing DG under the annual allocation procedure and in the light of budgetary constraints. 

Revenues are expected to be induced through the payment of financial duties. Quantification 
is very difficult since any revenue depends on the circumstances of each individual case.  

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

The monitoring, evaluation and reporting framework for this initiative is described in Chapter 
7 of the accompanying Impact Assessment Report.  

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• 

Presentation of the proposal 

The  Recitals  set  out  the  objective  of  the  Regulation  which  is  to  ensure  fair  competition 
between Union air carriers and third country air carriers, with a view to maintain conditions 
conducive to a high level of connectivity. 

Chapter I of the proposal includes general provisions. This Chapter sets out the scope of the 
Regulation  and  includes  a  number  of  definitions  that  are  relevant  in  order  to  correctly 
understand the Regulation, notably the practices addressed by this Regulation. 

Chapter  II  contains  common  rules  on  proceedings.  Those  rules  govern  the  initiation  and 
conduct of the investigation. It provides that an investigation may be opened on the basis of a 
complaint from a Member State, an EU air carrier or an association of EU air carriers, or on 
the  Commission's  own  initiative.  It  sets  out  the  conditions  according  to  which  the 
Commission may decide or refuse to open an investigation and specifies the procedure to be 
followed when announcing that an investigation is being opened. It determines the right of the 
Commission to seek all the information it deems necessary to conduct the investigation and to 
verify  the  accuracy  of  the  information  it  has  received  or  collected16.  It  also  defines  the  two 
possible  purposes  of  the  investigation,  pertaining  either  to  the  violation  of  applicable 
international  obligations  (the  so-called  'violation'  track),  or  to  practices  adopted  by  a  third 
country or third-country entity affecting competition and causing injury or threat of injury to 
Union  air  carriers  (the  so-called  'injury'  track).  In  addition  this  Chapter  sets  out  the  rules 
according  to  which  an  investigation  shall  be  conducted  and  those  under  which  interested 
parties can access information relating to the investigation. It also includes provisions related 
to cooperation with Member States, to confidentiality and to disclosure. 

Chapter III describes the acts through which proceedings regarding the violation of applicable 
international  obligations  are  concluded,  i.e.  with  or  without  the  adoption  of  redressive 
measures.  Measures  available  in  this  respect  are  notably  those  provided  for  in  the  act 
containing the applicable international obligations. 

Chapter  IV  governs  cases  regarding  practices  affecting  competition.  To  this  effect,  it 
establishes  first  under  which  conditions  the  existence  of  injury  or  threat  of  injury  may  be 
found.  It  also  sets  out  the  conditions  according  to  which  proceedings  may  be  suspended  or 
concluded, with or without the adoption of redressive measures. It provides for the possibility 
to  adopt  financial  or  operational  measures  intended  to  offset  injury  or  threat  of  injury  and 
requires  that  the  measures  must  not  exceed  what  is  necessary  for  such  offsetting  bearing  in 
mind that the objective of such measures does not consist in punishing the third country air 
carrier  concerned  but  in restoring  fair  competition. This  Chapter also  defines  the conditions 
under which the redressive measures may be reviewed. 

Finally, Chapter V includes provisions relating to the Committee procedure, to the repeal of 
Regulation (EC) No 868/2004 and to the entry into force of this Regulation. 

16 

This  aims  at  addressing  an  identified  lack  of  transparency  and  information  about  the  practices  that 
allegedly impact competition conditions on the market. 

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2017/0116 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on safeguarding competition in air transport, repealing Regulation (EC) No 868/2004 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Articles 100(2) thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Having regard to the opinion of the European Economic and Social Committee17,  
Having regard to the opinion of the Committee of the Regions18,  

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

Aviation  plays  a  crucial  role  in  Union's  economy.  It  is  a  strong  driver  for  economic 
growth,  jobs,  trade  and  mobility.  Over  the  past  decades,  growth  in  air  transport 
services significantly contributed to improving connectivity within the Union and with 
third countries and has been a significant enabler of Union economy at large. 

Union air carriers are at  the centre of a global network connecting Europe internally 
and  with  the  rest  of  the  world.  They  should  be  enabled  to  compete  against  third 
countries air carriers in an environment of open and fair  competition between all air 
carriers. This would contribute to maintaining conditions conducive to a high level of 
Union's connectivity. 

Fair competition is an important general principle in the operation of international air 
transport  services.  This  principle  is  notably  acknowledged  by  the  Convention  on 
International Civil Aviation ('the Chicago Convention') whose preamble recognises the 
need  for  international  air  transport  services  to  be  based  on  the  basis  of  "equality  of 
opportunity".  Article  44  of  the  Chicago  Convention  also  states  that  the  International 
Civil  Aviation  Organization  ('ICAO')  should  aim  to  foster  the  development  of 
international  air  transport  so  as  to  "insure  that  every  contracting  State  has  a  fair 
opportunity  to  operate  international  airlines"  and  to  "avoid  discrimination  between 
contracting States". 

(4) 

The  fair  competition  principle  is  well  established  within  the  Union  where  market 
distortive  practices  are  subject  to  existing  Union  law,  which  guarantees  equal 
opportunities  and  fair  competition  conditions  for  all  air  carriers,  European  and  non-
European, operating in the Union.  

17 
18 

OJ C , , p. . 
OJ C , , p. . 

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(5) 

(6) 

(7) 

(8) 

However,  in  spite  of  continued  efforts  by  some  third  countries  and  the  Union, 
principles of fair competition have not yet been defined through specific multilateral 
rules,  notably  in  the  context  of  the  ICAO  nor  of  World  Trade  Organization  ('WTO') 
agreements,  from  the  scope  of  which  air  transport  services  have  largely  been 
excluded19. 

Efforts  should  therefore  be  strengthened  in  the  context  of  ICAO  and  of  WTO  to 
actively support the development of international rules guaranteeing fair competition 
conditions between all air carriers. 

Fair competition between air carriers should preferably be addressed in the context of 
air  transport  or  air  services  agreements  with  third  countries.  However,  most  air 
transport  or  air  services  agreements  concluded  between  the  Union  or  its  Member 
States or both, on the one hand, and third countries on the other do not so far provide 
for  corresponding  rules.  Efforts  should  therefore  be  strengthened  to  negotiate  the 
inclusion of fair competition clauses in existing and future air transport or air services 
agreements with third countries. 

Fair competition  between air  carriers can  also be ensured through  appropriate Union 
legislation  such  as  Council  Regulation  (EEC)  No  95/9320  and  Council  Directive 
96/97/EC21. Insofar as fair competition supposes protection of Union air carriers from 
certain  practices  adopted  by  third  countries  or  third  country  carriers,  this  issue  is 
currently addressed in Regulation (EC) No 868/2004 of the European Parliament and 
of  the  Council22.  However,  Regulation  (EC)  No  868/2004  has  proven  insufficiently 
effective, in respect of its underlying general aim of fair competition. This is notably 
due  to  certain  of  its  rules  pertaining  notably  to  the  definition  of  the  practices 
concerned,  other  than  subsidisation,  and  to  the  requirements  regarding  the  initiation 
and  conduct  of  investigations.  In  addition,  Regulation  (EC)  No  868/2004  fails  to 
provide for a dedicated Union internal procedure in respect of obligations contained in 
air transport or air services agreements to which the Union is a party and intended to 
ensure  fair  competition.  Given  the  number  and  importance  of  the  amendments  that 
would be necessary to address these issues, it is appropriate to replace Regulation (EC) 
No 868/2004 by a new act. 

(9) 

Effective,  proportionate  and  dissuasive  legislation  remains  necessary  in  order  to 
maintain conditions conducive to a high level of Union connectivity and to ensure fair 
competition  with  third countries air  carriers.  To  that  end,  the  Commission  should  be 
entrusted  with  the  power  to  conduct  an  investigation  and  to  take  measures  where 
necessary. Such measures should be available either where relevant obligations under 
an agreement to which the Union is a party are violated, or where practices affecting 
competition cause or threaten to cause injury to Union air carriers. 

(10)  Where  the  Union  is  party  to  an  air  transport  or  air  services  agreement  with  a  third 
country,  the  violation  of  international  obligations  enshrined  therein  should  be 

19 

20 

21 

22 

Marrakech  Agreement,  Annex  1B  General  Agreement  on  Trade  in  Services  (GATS),  Annex  on  Air 
Transport Services. 
Council Regulation (EEC) No 95/93 of 18 January 1993 on common rules for the allocation of slots at 
Community airports (OJ L 14, 22.1.1993, p.1). 
Council Directive 96/67/EC of 15 October 1996 on access to the groundhandling market at Community 
airports (OJ L 272, 25.10.1996, p.36). 
Regulation  (EC)  No  868/2004  of  the  European  Parliament  and  of  the  Council  of  21  April  2004 
concerning  protection  against  subsidisation  and  unfair  pricing  practices  causing  injury  to  Community 
air carriers in the supply of air services from countries not members of the European Community (OJ L 
162, 30.04.2004, p.1). 

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(11) 

(12) 

addressed within the context of this agreement, in particular through the application of 
the fair competition clause where it exists, and, where relevant, dispute settlement. 

In  order  for  the  Commission  to  be  adequately  informed  about  possible  elements 
justifying  the  initiation  of  an  investigation,  any  Member  State,  Union  carrier  or 
association of Union air carriers should be entitled to lodge a complaint. 

It is important to ensure that the investigation can extend to the widest possible range 
of pertinent elements. To this effect, and subject to the consent of the third country and 
third  country  entity  concerned,  the  Commission  should  be  enabled  to  carry  out 
investigations in third countries. For the same reasons and to the same end, Member 
States should be obliged to support the Commission to the best of their abilities. The 
Commission should conclude the investigation on the basis of best available evidence. 

(13)  Where the investigation conducted by the Commission concerns operations covered by 
an air transport or air services agreement with  a third country to which the Union is 
not  a  party,  it  should  be  ensured  that  the  Commission  acts  in  full  knowledge  of  any 
proceedings  intended  or  conducted  by  the  Member  State  concerned  under  such 
agreement  and  pertaining  to  the  situation  subject  to  the  Commission’s  investigation. 
Member  States  should  therefore  be  obliged  to  keep  the  Commission  informed 
accordingly. 

(14) 

It  is  necessary  to  lay  down  the  conditions  under  which  proceedings  should  be 
concluded, with or without the imposition of redressive measures. 

(15)  Proceedings  should  not  be  initiated  or  should  be  concluded  without  redressive 
measures under this Regulation where the adoption of the latter would be against the 
Union interest, having regard to their impact on other persons, notably consumers or 
undertakings  in  the  Union.  Proceedings  should  also  be  concluded  without  measures 
where the requirements for such measures are not, or no longer met. 

(16)  Where  applicable  international  obligations  have  been  violated,  any  redressive 
measures would by nature need to be based on the act containing such obligations or 
on rules and principles of public international law. In order to preserve the integrity of 
those  acts,  any  such  measures  should  only  be  adopted  following  discharge  of  the 
procedures provided for therein. 

(17)  Findings in respect of injury or threat of injury to the Union air carrier(s) concerned 
should reflect a realistic assessment of the situation and should therefore be based on 
all  relevant  factors,  in  particular  pertaining  to  the  situation  of  those  carrier(s)  and  to 
the general situation of the affected air transport market. 

(18)  For reasons of administrative efficiency and in view of a possible termination without 
measures, it should be possible to suspend the proceedings where the third country or 
third  country  entity  concerned  has  taken  decisive  steps  to  eliminate  the  relevant 
practice affecting competition or the ensuing injury or threat of injury. 

(19)  Redressive  measures  in  respect  of  practices  affecting  competition  are  aimed  at 
offsetting  the  injury  that  occurs  or  is  threating  to  occur  due  to  those  practices.  They 
should  therefore  take  the  form  of  financial  duties  or  of  other  measures  which, 
representing a measurable pecuniary value, are capable of achieving the same effect. 
This  may  include  measures  consisting  in  the  suspension  of  concessions,  of  services 
owed or of other rights of the third country air carrier, provided that this does not lead 
to  a  violation  of  an  air  transport  or  air  services  agreement  concluded  with  the  third 
country concerned. In order to comply with the principle of proportionality, measures 

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of  any  kind  should  be  confined  to  what  is  necessary  to  offset  the  injury  or  threat  of 
injury identified. 

(20) 

In  line  with  the  same  principle,  redressive  measures  in  respect  of  practices  affecting 
competition  should  remain  in  force  only  as  long  as,  and  to  the  extent  that,  it  is 
necessary  in  view  of  such  practice  and  the  ensuing  injury  or  threat  of  injury. 
Consequently, a review should be provided for where circumstances so warrant. 

(21)  Situations  investigated  under  this  Regulation  and  their  potential  impact  on  Member 
States may differ according to the circumstances. Redressive measures may therefore 
apply, according to the case, to one or more Member States or be limited to a specific 
geographical area. 

(22) 

In  order  to  ensure  uniform  conditions  for  the  implementation  of  this  Regulation, 
implementing powers should be conferred on the Commission. Those powers should 
be  exercised  in  accordance  with  Regulation  (EU)  No  182/2011  of  the  European 
Parliament and of the Council23. 

(23)  Since  the  objective  of  this  Regulation,  namely  the  efficient  protection,  equal  for  all 
Union  carriers  and  based  on  uniform  criteria  and  procedures,  against  violation  of 
applicable  international  obligations  and  against  injury  or  threat  of  injury  to  one  or 
more  Union  air  carriers  caused  by  practices  affecting  competition,  adopted  by  third 
countries  or  third  country  entities  cannot  be  sufficiently  achieved  by  the  Member 
States,  but  can  rather  be  better  achieved  at  Union  level,  the  Union  may  adopt 
measures, in accordance with the principle of subsidiarity as set out in Article 5 of the 
Treaty on the European Union. In accordance with the principle of proportionality, as 
set out in that Article, this Regulation does not go beyond what is necessary in order to 
achieve those objectives. 

(24)  Since this Regulation replaces Regulation (EC) No 868/2004,  that Regulation should 

therefore be repealed, 

HAVE ADOPTED THIS REGULATION: 

CHAPTER I 

GENERAL PROVISIONS 

Article 1 

Subject matter 

1. 

2. 

23 

This Regulation lays down rules on the conduct of investigations by the Commission 
and  on  the  adoption  of  redressive  measures,  relating  to  violation  of  applicable 
international  obligations  and  to  practices  affecting  competition  between  Union  air 
carriers and other air carriers and causing or threatening to cause injury to Union air 
carriers. 

This  Regulation  applies  without  prejudice  to  Article  12  of  Regulation  (EEC)  No 
95/93 and Article 20 of Directive 96/67/EC. 

Regulation  (EU)  No  182/2011  of  the  European  Parliament  and  of  the  Council  of  16  February  2011 
laying down the rules and general principles concerning mechanisms for control by Member States of 
the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13). 

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Article 2 

Definitions 

For the purposes of this Regulation: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

'air carrier' means an air carrier as defined in Regulation (EC) No 1008/2008 of 
the European Parliament and of the Council24; 

'air transport service' means a flight or a series of flights carrying passengers, 
cargo or mail for remuneration or hire; 

'applicable  international  obligations'  means  any  obligations  that  are  contained 
in an international air transport or air services agreement to which the Union is 
a party or any provision on air transport services included in a trade agreement 
to  which  the  Union  is  a  party,  and  which  relates  to  practices  that  may  affect 
competition or other conduct relevant to competition between air carriers; 

'interested  party'  means  any  natural  or  legal  person  or  any  official  body, 
whether  or  not  having  its  own  legal  personality,  that  is  likely  to  have  a 
significant interest in the result of proceedings; 

'third country entity' means any natural or legal person, whether profit-making 
or  not,  or  any  official  body  with  or  without  own  legal  personality,  which  is 
under the jurisdiction of a third country, whether controlled by a third country 
government  or  not,  and  is  directly  or  indirectly  involved  in  air  transport 
services  or  related  services  or  in  providing  infrastructure  or  services  used  to 
provide air transport services or related services; 

'practices affecting competition' means discrimination and subsidies; 

'discrimination'  means  differentiation  of  any  kind  without  objective 
justification  in  respect  of  the  supply  of  goods  or  services,  including  public 
services, employed for the operation of air transport services, or in respect of 
their  treatment  by  public  authorities  relevant  to  such  services  (including 
practices  relating  to  air  navigation  or  airport  facilities  and  services,  fuel, 
ground  handling,  security,  computer  reservation  systems,  slot  allocation, 
charges, and the use of other facilities or services employed for the operation of 
air transport services); 

(h) 

'subsidy' means a financial contribution: 

(i)  granted by a government or other public organisation of a third country in 

any of the following forms: 

(1)  a  practice  of  a  government  or  other  public  organisation involving a 
direct transfer of funds, potential direct transfer of funds or liabilities 
(such as grants, loans, equity infusion, loan guarantees, setting-off of 
operational losses, or compensation for financial burdens imposed by 
public authorities);  

(2)  revenue  of  a  government  or  other  public  organisation  that  is 
otherwise  due  is  foregone  or  not  collected  (such  as  preferential  tax 
treatment or fiscal incentives such as tax credits);  

24 

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 (OJ L 293, 31.10.2008, p.3). 

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(3)  a  government  or  other  public  organisation,  including  publicly 
controlled  undertakings,  provides  goods  or  services,  or  purchases 
goods or services;  

(4)  a  government  or  other  public  organisation  makes  payments  to  a 
funding mechanism or entrusts or directs a private body to carry out 
one or more of the type of functions referred to in points (1), (2) and 
(3)  which  would  normally  be  vested  in  the  government  and,  in 
practice, in no real sense differs from practices normally followed by 
governments;  

(ii)  conferring a benefit;  

(iii)  limited,  in  law  or  in  fact,  to  an  entity  or  industry  or  group of  entities  or 

industries within the jurisdiction of the granting authority; 

(i) 

‘Union air carrier’ means an air carrier with a valid operating licence granted 
by a Member State in accordance with Regulation (EC) No 1008/2008. 

CHAPTER II 

COMMON PROVISIONS REGARDING PROCEEDINGS 

Article 3 

Initiation of proceedings 

1. 

2. 

3. 

4. 

An  investigation  shall  be  initiated  following  a  written  complaint  submitted  by  a 
Member  State,  a  Union  air  carrier  or  an  association  of  Union  air  carriers  in 
accordance with paragraph 2, or on the Commission's own initiative, if there is prima 
facie evidence of either of the following: 

(a) 

(b) 

violation of applicable international obligations;  

the existence of all the following circumstances: 

(i)  a  practice  affecting  competition,  adopted  by  a  third  country  or  a  third 

country entity; 

(ii)  injury or threat of injury to one or more Union air carriers; 

(iii)  a causal link between the alleged practice and the alleged injury or threat 

of injury.  

A  complaint  shall  include  prima  facie  evidence  of  one  of  the  cases  referred  to  in 
paragraph 1. 

The Commission shall, as far as possible, examine the accuracy and adequacy of the 
elements provided in the complaint or at the disposal of the Commission, in order to 
determine  whether  there  is  sufficient  evidence  to  justify  the  initiation  of  an 
investigation in accordance with paragraph 1. 

The  Commission  may  decide  not  to  initiate  an  investigation  where  the  adoption  of 
measures in accordance with Articles 10 or 13 would be against the Union interest or 
where the Commission considers that the facts put forward in the complaint neither 
raise  a  systemic  issue,  nor  have  a  significant  impact  on  one  or  more  Union  air 
carriers. 

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14 

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5. 

6. 

7. 

8. 

1. 

2. 

3. 

4. 

Where  the  evidence  presented  is  insufficient  for  the  purposes  of  paragraph  1,  the 
Commission shall inform the complainant about the insufficiency within 60 days of 
the date on which the complaint was lodged. The complainant shall be given 30 days 
to provide additional evidence. Where the complainant fails to do so within that time 
limit, the Commission may decide not to initiate the investigation. 

The Commission shall decide on the initiation of an investigation in accordance with 
paragraph 1 within 6 months of the lodging of the complaint. 

Subject  to  paragraph  4,  when  the  Commission  considers  that  there  is  sufficient 
evidence  to  justify  initiating  an  investigation,  the  Commission  shall  take  the 
following steps: 

(a) 

(b) 

(c) 

(d) 

initiate the proceedings; 

publish a notice in the Official Journal of the European Union; the notice shall 
announce  the  initiation  of  the  investigation,  indicate  the  scope  of  the 
investigation, the applicable international obligations that are allegedly violated 
or the third country or third country entity who has allegedly been engaged in 
practices  affecting  competition  and  the  alleged  injury  or  threat  of  injury,  the 
Union  air  carrier(s)  concerned  and  state  the  period  within  which  interested 
parties  may  make  themselves  known,  present  their  views  in  writing,  submit 
information or may apply to be heard by the Commission. 

officially notify the representatives of the third country and third country entity 
concerned of the initiation of the investigation; 

inform the complainant and the Committee provided for under Article 15 of the 
initiation of the investigation. 

Where  the  complaint  is  withdrawn  prior  to  the  initiation  of  the  investigation,  the 
complaint  is  considered  not  to  have  been  lodged.  This  is  without  prejudice  to  the 
right  of  the  Commission  to  initiate  an  investigation  on  its  own  initiative  in 
accordance with paragraph 1. 

Article 4 

The investigation 

Following the initiation of proceedings, the Commission shall begin an investigation. 

The investigation shall aim to determine either of the following: 

(a) 

(b) 

whether the applicable international obligations have been violated;  

whether a practice affecting competition, adopted by a third country or a third 
country entity, has caused injury or threat of injury to the Union air carrier(s) 
concerned. 

The  Commission  may  seek  all  the  information  it  deems  necessary  to  conduct  the 
investigation  and  may  verify  the  accuracy  of  the  information  it  has  received  or 
collected  with  the Union air  carrier(s)  concerned, or  with  the third  country or  third 
country entity concerned. 

The  Commission  may  request  Member  States  to  support  it  in  the  investigation  and 
Member States shall take whatever steps are necessary in order to give effect to such 
requests.  The  support  requested  from  the  Member  States  may  cover  information 

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15 

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5. 

6. 

7. 

supply  and  information  analysis  as  well  as  contribution  to  checks,  inspections  and 
investigations.  

If it appears necessary, the Commission may carry out investigations in the territory 
of  the  third  country  concerned,  provided  that  the  government  of  the  third  country 
concerned  and  the  third  country  entity  concerned  have  been  officially  notified  and 
have given their consent. 

Parties  which  have  made  themselves  known  within  the  time  limits  set  out  in  the 
notice of initiation, shall be heard if they have made a request for a hearing showing 
that they are an interested party. 

interested  parties, 

the  Member  State(s)  concerned  and 

Complainants, 
the 
representatives of the third country or third country entity concerned may consult all 
information  made  available  to  the  Commission,  except  for  internal  documents  that 
are  for  the  use  of  the  Commission  and  the  administrations,  provided  that  such 
information is not confidential within the meaning of Article 6 and provided that it 
has addressed a request in writing to the Commission. 

Cooperation with the Member States in respect of proceedings relevant to cases falling 
under Chapter IV 

Article 5 

1. 

2. 

3. 

4. 

When  the  Commission  intends  to  initiate  proceedings  in  accordance  with  Article  3 
and where the air transport services concerned are regulated by an air transport or air 
services  agreement  concluded  between  one  or  more  Member  States  and  a  third 
country  and  to  which  the  Union  is  not  a  party,  the  Commission  shall  inform  the 
Member State(s) concerned. 

Where a Member State is informed by the Commission in accordance with paragraph 
1,  that  Member  State  shall  inform  the  Commission  without  undue  delay  of  its 
intention  to  resort  to  procedures  for  dispute  settlement  or  any  other  relevant 
procedure  provided  for  in  the  air  transport  or  air  services  agreement  with  the  third 
country  concerned,  with  a  view  to  addressing  the  situation  covered  by  the 
investigation. 

The Member State referred to in paragraph 2 shall also inform the Commission of all 
relevant  meetings  scheduled  in  the  framework  of  the  air  transport  or  air  services 
agreement  with  the  third  country  concerned  to  discuss  the  issue  covered  by  the 
investigation.  The  Member  State concerned  shall  provide  the  Commission  with  the 
agenda and all relevant information permitting an understanding of the topics to be 
discussed at those meetings. 

The Member State concerned shall keep the Commission informed of the conduct of 
any  procedure  as  referred  to  in  paragraph  2  and  may,  where  appropriate,  invite  the 
Commission  to  attend  those  procedures.  The  Commission  may  request  further 
information from the Member State concerned. 

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Article 6 

Confidentiality 

1. 

2. 

3. 

4. 

5. 

6. 

Any  information  which  is  by  nature  confidential,  including  but  not  limited  to 
information the disclosure of which would be of significant competitive advantage to 
a  competitor  or  would  have  a  significantly  adverse  effect  upon  a  person  supplying 
the information or upon a person from whom the person supplying the information 
has acquired the information, or which is provided on a confidential basis by parties 
to  an  investigation  shall,  if  good  cause  is  shown,  be  treated  as  such  by  the 
Commission. 

Interested  parties  providing  confidential  information  shall  be  required  to  provide 
non-confidential summaries thereof. Those summaries shall be in sufficient detail to 
permit a reasonable understanding of the substance of the information submitted in 
confidence. In exceptional circumstances, the interested parties may indicate that the 
confidential information cannot be summarised. In such exceptional circumstances, a 
statement of the reasons why summarisation is not possible shall be provided. 

Information received pursuant to this Regulation shall be used only for the purpose 
for which it was requested. This provision shall not preclude the use of information 
received  in  the  context  of  one  investigation  for  the  purpose  of  initiating  another 
investigation in accordance with this Regulation. 

The Commission and the Member States, including the officials of either, shall not 
reveal any information of a confidential nature received pursuant to this Regulation, 
or  any  information  provided  on  a  confidential  basis  by  a  party  to  an  investigation, 
without specific permission from the party submitting such information. Exchanges 
of  information  between  the  Commission  and  Member  States,  or  any  internal 
document prepared by the authorities of the Union or the Member States, shall not be 
divulged except where specifically provided for in this Regulation. 

Where it appears that a request for confidentiality is not warranted and if the supplier 
is  unwilling  either  to  make  the  information  public  or  to  authorise  its  disclosure  in 
generalised or summary form, the information concerned may be disregarded. 

This  Article  shall  not  preclude  the  disclosure  of  general  information  by  the  Union 
authorities  and  in  particular  the  disclosure  of  the  reasons  on  which  decisions  taken 
pursuant to this Regulation are based or the disclosure of the evidence relied on by 
the  Union  authorities  in  so  far  as  is  necessary  to  explain  those  reasons  in  court 
proceedings.  Such  disclosure  shall  take  into  account  the  legitimate  interest  of  the 
parties concerned that their business or government secrets shall not be divulged.  

Article 7  

Basis of findings in case of non-cooperation 

In  cases  where  access  to  the  necessary  information  is  refused  or  is  otherwise  not  provided 
within  the  appropriate  time  limits,  or  where  the  investigation  is  significantly  impeded, 
findings shall be made on the basis of the available facts. Where the Commission finds that 
false or misleading information has been submitted, such information shall be disregarded. 

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Article 8 

Disclosure 

1. 

2. 

3. 

1. 

2. 

3. 

4. 

The third country, the third country entity and the third air carrier concerned, as well 
as the complainant and interested parties shall receive disclosure of the essential facts 
and considerations on the basis of which it is intended to adopt redressive measures, 
or to terminate proceedings without adopting redressive measures, no later than one 
month  before  the  Committee  referred  to  in  Article  15  is  seized  in  accordance  with 
Articles 10(2), 10(3), 12(2) or 13(1). 

Disclosure  shall  not  prejudice  any  subsequent  decision  which  may  be  taken  by  the 
Commission.  Where  the  Commission  intends  to  base  such  a  decision  on  any 
additional  or  different  facts  and  considerations  they  shall  be  disclosed  as  soon  as 
possible. 

Representations made after disclosure is given shall be taken into consideration only 
if received within a period to be set by the Commission in each case, which shall be 
at least 10 days, due consideration being given to the urgency of the matter. A shorter 
period may be set whenever an additional final disclosure has to be made. 

Article 9 

Duration of proceedings and suspension  

The proceedings shall be concluded within two years. That period may be prolonged 
in duly justified cases. 

In  case  of  urgency,  such  as  in  situations  where  there  is  a  risk  of  immediate  and 
irreversible injury  to  Union  air  carrier(s),  the  proceedings may  be  shortened to  one 
year. 

The Commission may suspend the proceedings where the third country or the third 
country entity concerned has taken decisive steps to eliminate, as the case may be: 

(a) 

(b) 

in case of violation of applicable international obligation, that violation; 

in  case  of  practice  affecting  competition,  either  that  practice  or  the  injury  or 
threat of injury to the Union air carrier(s) concerned. 

If  the  violation  of  applicable  international  obligations  or  the  practice  affecting 
competition,  the  injury  or  the  threat  of  injury  to  the  Union  air  carrier(s)  concerned 
has not been eliminated following a reasonable period of time, the Commission may 
resume the proceedings. 

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CHAPTER III 

VIOLATION OF APPLICABLE INTERNATIONAL OBLIGATIONS 

Article 10 

Conclusion of proceedings 

1. 

2. 

3. 

4. 

5. 

Where the complaint is withdrawn, the Commission may terminate the investigation 
conducted under Article 4 without adopting redressive measures.  

The  Commission  shall,  by  means  of  implementing  acts,  terminate  the  investigation 
conducted  under  Article  4  without  adopting  redressive  measures  in  any  of  the 
following cases: 

(a) 

(b) 

(c) 

the  Commission  concludes  that  applicable  international  obligations  have  not 
been violated; 

the Commission concludes that adopting redressive measures would be against 
Union interest; 

a  satisfactory  remedy  has  been  obtained  between  the  Union  and  the  third 
country concerned in accordance with the relevant mechanisms provided for in 
the applicable agreement or arrangement or under relevant public international 
law. 

The  implementing  acts  referred  to  in  the  first  subparagraph  shall  be  adopted  in 
accordance with the advisory procedure referred to in Article 15(2). 

Without prejudice to the relevant provisions of the Treaty on the Functioning of the 
European Union and subject to paragraphs 1 and 2, the Commission shall, by means 
of implementing acts, adopt redressive measures if the investigation determines that 
the applicable international obligations have been violated. 

Those implementing acts shall be adopted in accordance with the advisory procedure 
referred to in Article 15(2). 

Where the act containing the applicable international obligations requires, before the 
adoption  of  any  measure,  the  prior  discharge  of  an  international  procedure  for 
consultation or for the settlement of disputes, that procedure shall be first discharged 
and  any  decision  taken  in  accordance  with  paragraph  3  shall  take  account  of  its 
results. 

The  redressive  measures  referred  to  in  paragraph  3  shall  be  the  measures  provided 
for  by  the  act  containing  the  applicable  international  obligations  or  available  under 
relevant rules and principles of public international law. 

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CHAPTER IV 

PRACTICES AFFECTING COMPETITION 

Article 11 

Determination of injury 

1. 

A finding of injury for the purposes of this Chapter shall be based on evidence and 
shall take account of all relevant factors, in particular: 

(a) 

(b) 

the situation of the Union air carrier(s) concerned, notably in terms of aspects 
such  as  frequency  of  services,  utilisation  of  capacity,  network  effect,  sales, 
market share, profits, return on capital, investment and employment; 

the general situation on the affected air transport services market(s), notably in 
terms of level of fares or rates, capacity and frequency of air transport services 
or use of the network. 

2. 

A finding of a threat of injury requires that it be clearly foreseeable that a particular 
situation  is  likely  to  develop  into  actual  injury.  Any  such  determination  shall  be 
based on evidence and take account of all relevant factors, in particular: 

3. 

4. 

1. 

2. 

(a) 

(b) 

the foreseeable evolution of the situation of the Union air carrier(s) concerned 
notably  in  terms  of  frequency  of  services,  utilisation  of  capacity,  network 
effect,  sales,  market  share,  profits,  return  on  capital,  investment  and 
employment; 

the foreseeable evolution of the general situation of the potentially affected air 
transport services market(s), notably in terms of level of fares or rates, capacity 
and frequency of air transport services or use of the network. 

The  Commission  shall  select  an  investigation  period  and  analyse  the  relevant 
evidence over that period. 

Injury  or  threat  of  injury  caused  by  factors  other  than  the  practice  affecting 
competition  and  which  are  also  negatively  affecting  the  Union  air  carrier(s) 
concerned shall not be attributed to the practice under scrutiny. 

Article 12 

Termination of proceedings without redressive measures 

The  Commission  may  terminate  the  investigation  without  adopting  redressive 
measures where the complaint is withdrawn.  

The  Commission  shall,  by  means  of  implementing  acts,  terminate  the  investigation 
conducted in accordance with Article 4 without adopting redressive measures where: 

(a) 

the Commission concludes that either of the following is not established: 

(i) 

(ii) 

the  existence  of  a  practice  affecting  competition,  adopted  by  a  third 
country or a third country entity; 

the  existence  of  injury  or  threat  of  injury  to  the  Union  air  carrier(s) 
concerned; 

EN 

20 

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(iii)  the existence of a causal link between the injury or threat of injury and the 

practice considered;  

(b) 

(c) 

(d) 

the  Commission  concludes  that  adopting  redressive  measures  in  accordance 
with Article 13 would be against Union interest;  

the third country or third country entity concerned has eliminated the practice 
affecting competition;  

the third country or third country entity concerned has eliminated the injury or 
threat of injury to the Union air carrier(s) concerned. 

Those implementing acts shall be adopted in accordance with the advisory procedure 
referred to in Article 15(2). 

The decision to terminate the investigation in accordance with paragraph 2 shall be 
accompanied  by  a  statement  of  the  reasons  thereof  and  shall  be  published  in  the 
Official Journal of the European Union.  

Article 13 

Redressive measures 

Without prejudice to Article 12(1) and except in the case referred to in point (b) of 
Article 12(2) the Commission shall, by means of implementing acts, adopt redressive 
measures  if  the  investigation  conducted  under  Article  4  determines  that  a  practice 
affecting competition, adopted by a third country or a third country entity, has caused 
injury or threat of injury to the Union air carrier(s) concerned. 

Those implementing acts shall be adopted in accordance with the advisory procedure 
referred to in Article 15(2). 

The  redressive  measures  referred  to  in  paragraph  1  shall  be  imposed  on  the  third 
country  air  carriers(s)  benefiting  from  the  practice  affecting  competition  and  may 
take the form of either of the following: 

(a) 

(b) 

financial duties;  

any measure of equivalent or lesser value. 

The redressive measures referred to in paragraph 1 shall not exceed what is necessary 
to offset the injury or threat of injury to the Union air carrier(s) concerned. To this 
effect measures referred to in point (b) of paragraph 2 may be limited to a specific 
geographic area. 

The redressive measures referred to in paragraph 1 shall not direct the Union or the 
Member State(s) concerned to violating air transport, air services agreements or any 
provision on air transport services included in a trade agreement concluded with the 
third country concerned. 

The decision to conclude the investigation with the adoption of redressive measures 
referred to in paragraph 1 shall be accompanied by a statement of the reasons thereof 
and shall be published in the Official Journal of the European Union. 

3. 

1. 

2. 

3. 

4. 

5. 

EN 

21 

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1. 

2. 

3. 

4. 

1. 

2. 

Article 14 

Review of redressive measures 

The redressive measures referred to in Article 13 shall remain in force only as long 
as,  and  to  the  extent  that,  it  is  necessary  in  view  of,  the  persistence  of  the  practice 
affecting  competition  and  the  ensuing  injury  or  threat  of  injury.  To  this  end,  the 
review procedure set out in paragraphs 2, 3 and 4 shall apply. 

Where circumstances so warrant, the need for the continued imposition of redressive 
measures  in  their  initial  form  may  be  reviewed,  either  on  the  initiative  of  the 
Commission or of the complainant or upon a reasoned request by the third country or 
the third country entity concerned. 

In the course of its review, the Commission shall assess the continued existence of 
the practice affecting competition, of the injury or threat of injury and of the causal 
link between the practice and the injury or threat of injury. 

The Commission shall, by means of implementing acts, repeal, amend or  maintain, 
as appropriate, the redressive measures. Those implementing acts shall be adopted in 
accordance with the advisory procedure referred to in Article 15(2). 

CHAPTER V 

FINAL PROVISIONS 

Article 15 

Committee procedure 

The  Commission  shall  be  assisted  by  a  committee.  That  committee  shall  be  a 
committee within the meaning of Regulation (EU) No 182/2011. 

Where  reference  is  made  to  this  paragraph,  Article  4  of  Regulation  (EU)  No 
182/2011 shall apply. 

Article 16 

Repeal 

Regulation  (EC)  No 868/2004  is  repealed.  References  to  the  repealed  Regulation  shall  be 
construed as references to this Regulation. 

Article 17 

Entry into force 

This Regulation shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

EN 

22 

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Done at Brussels, 

For the European Parliament  

The President   

For the Council 

The President 

EN 

23 

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1.  Title of the proposal/initiative  

1.2.  Policy area(s) concerned in the ABM/ABB structure 

1.3.  Nature of the proposal/initiative  

1.4.  Objective(s)  

1.5.  Grounds for the proposal/initiative  

1.6.  Duration and financial impact  

1.7.  Management mode(s) planned  

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

2.2.  Management and control system  

2.3.  Measures to prevent fraud and irregularities  

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1.  Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

3.2.  Estimated impact on expenditure  

3.2.1. Summary of estimated impact on expenditure  

3.2.2. Estimated impact on operational appropriations  

3.2.3. Estimated impact on appropriations of an administrative nature 

3.2.4. Compatibility with the current multiannual financial framework 

3.2.5. Third-party contributions  

3.3.  Estimated impact on revenue

EN 

24 

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative  

Regulation  of  the  European  Parliament  and  of  the  Council  on  safeguarding 
competition in air transport, repealing Regulation (EC) No 868/2004 of the European 
Parliament and of the Council 
Policy area(s) concerned in the ABM/ABB structure25  

1.2. 

06 - Mobility and Transport 

1.3. 

Nature of the proposal/initiative  

 The proposal/initiative relates to a new action  

  The  proposal/initiative 
project/preparatory action26  

relates 

to  a  new  action 

following  a  pilot 

 The proposal/initiative relates to the extension of an existing action  

 The proposal/initiative relates to an action redirected towards a new action  

1.4. 

Objective(s) 

1.4.1.  The  Commission's  multiannual 

strategic  objective(s) 

targeted  by 

the 

proposal/initiative  

Jobs and growth: The initiative aims to contribute to a competitive European aviation 
industry  that  generates  sustainable  growth  and  high-value  jobs,  and  drives 
technological innovation.  

A deeper and fairer internal market with a strengthened industrial base: a competitive 
single European transport area provides citizens and businesses with a framework for 
safe, efficient and high-quality transport. 

EU action is capable of ensuring fair competition between Union carriers and third 
countries  carriers  i.e.  a  level  playing  field  between  them.  This  contributes  to 
conditions conducive to a high level of connectivity. 

Finally,  the  proposed  Regulation  contributes  to  strengthening  the  EU's  role  as  a 
global actor. 

1.4.2. 

Specific objective(s) and ABM/ABB activity(ies) concerned  

Specific objective 

DG  MOVE  Specific  Objective  1:  An  efficient,  sustainable,  safe  and  secure  Single 
regulation,  ensure  a  high  degree  of 
European  Transport  Area: 
implementation of EU legislation in the transport area and open and fair competition 
both in the EU and in relations with key partner countries. 

Improve 

ABM/ABB activity(ies) concerned 

06 02 - European Transport Policy 

25 
26 

ABM: activity-based management; ABB: activity-based budgeting. 
As referred to in Article 54(2)(a) or (b) of the Financial Regulation. 

EN 

25 

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1.4.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

The  proposed  Regulation  is  expected  to  guarantee  fair  competition  between  Union 
carriers  and  third  country  carriers  which  should  contribute  to  a  high  level  of 
connectivity between the EU and third countries. 

To  achieve  this  objective,  the  proposed  Regulation  sets  a  framework  within  which 
practices  affecting  competition,  adopted  by  third  countries  or  third  country  entities 
and  causing  injury  or  threat  of  injury  to  EU  air  carriers  are  addressed,  and  where 
relevant  redressive  measures  are  adopted  to  compensate  the  injury  and  restore  fair 
competition. 

The  Regulation  also  provides  for  a  framework  for  the  adoption  of  measures  where 
applicable international obligations have (allegedly) been violated. 

It is expected that the EU airline industry will benefit from this Regulation.  

It  is  also  expected  that  EU  passengers  will  benefit  from  the  Regulation  as  it 
contributes to preserving a broad access to air transport services across the EU 

Finally, it is expected that the overall EU economy will benefit from this Regulation 
through  the  aviation  industry's  continued  contribution  to  the  objective  of  jobs  and 
growth.  

Expected  economic  consequences  include  an  increase  in  the  number  of  passengers 
carried  by  EU  airlines  and  in  EU  airlines'  revenue.  EU  airports  will  also  benefit as 
they will attract more passengers. 

Expected  operational  consequences  include  improved  connectivity  in  the  European 
airspace, driven by fair competition among air carriers. 

1.4.4. 

Indicators of results and impact  

Specify the indicators for monitoring implementation of the proposal/initiative. 

-  number and nature of official complaints from the sector to the Commission; 

-  European  stakeholders’  opinions  about  the  applicability  of  the  European  legal 
framework. 

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term  

Provide  an  effective  tool  that  makes  it  possible  to  address  practices  affecting 
competition causing injury or threat of injury to Union air carriers. Measures in such 
cases are intended to offset such injury or threat of injury. 

Provide for a framework for the adoption of measures where applicable international 
obligations have (allegedly) been violated. 

All such measures also contribute to a high level of connectivity between the EU and 
third countries. 

1.5.2.  Added value of EU involvement 

Compatibility with the principle of subsidiarity was recognised in the 26th recital of 
Regulation (EC) No 868/2004, insofar as it concerned the terms of that Regulation. 

EN 

26 

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The new central element contained in the proposed Regulation is action in cases of 
'violation  of  applicable  international  obligations'.  The  proposed  Regulation  defines 
'applicable  international  obligations'  as  obligations  contained  in  an  agreement  to 
which  the  Union  is  a  party.  Rights  vis-à-vis  third  countries,  under  agreements  to 
which  the  Union  is  a  party,  cannot  be  exercised  separately  by  individual  Member 
States. 

Since the objectives sought could not be achieved without action at Union level, such 
action is necessary to this effect and provides an added value compared to actions at 
national level. 

1.5.3.  Lessons learned from similar experiences in the past 

The aim of Regulation 868/2004 of the European Parliament and the Council was to 
prevent and counteract unfair practices, i.e. subsidies and discrimination, from third 
countries and third country entities negatively affecting EU carriers. 

However, over the more than 10 years  since its adoption, the Regulation has  never 
been  used,  as  no  EU  carrier  has  ever  lodged  a  formal  complaint,  spite  there  being 
many informal accusations and complaints in the industry about the unfair practices 
allegedly adopted by third countries and third country entities. 

The  main  reason  for  why  Regulation  868/2004  has  proven  to  be  ineffective  is  the 
very fact that, insofar as it concerns “unfair pricing”, it is conceptually modelled on 
tools  used  against  the  dumping  of  goods  and  is  therefore  not  adapted  to  the 
specificities of the air transport sector.  

Indeed,  outside  subsidisation,  Regulation  (EC)  No  868/2004  exclusively  applies  to 
so-called  unfair  pricing  practices.  These  can  only  be  found  to  exist  where  a  third 
country  carrier  charges  “air  fares  which  are  sufficiently  below  those  offered  by 
competing Community air carriers to cause injury”, evidence of which is difficult to 
administer. While the finding of “unfair pricing practices” also requires that the third 
country  carrier  has  received  a  non-commercial  advantage,  the  existence  of  such 
advantage alone is not sufficient to trigger Union action.  

Moreover, Regulation (EC) No 868/2004 fails to provide for a dedicated EU internal 
procedure  in  respect  of  obligations  contained  in  air  transport  or  air  services 
agreements,  to  which  the  Union  is  a  party,  and  that  are  intended  to  ensure  fair 
competition, i.e. where such obligations have been violated.  

Lastly,  the  rules  regarding  the  opening  of  an  investigation  are  quite  restrictive. 
Notably,  a  proper  right  to  complain  to  the  Commission  is  confined  to  the 
“Community  industry”,  defined  as  “the  Community  air  carriers  supplying  like  air 
services  as  a  whole  or  those  of  them  whose  collective  share  constitutes  a  major 
proportion of the total Community supply of those services”. Neither Member States 
nor individual air carriers are conferred a position as complainants in their own right. 

1.5.4.  Compatibility and possible synergy with other appropriate instruments 

The  proposed  Regulation  is  in  line  with  the  objectives  presented  in  the  Aviation 
Strategy and as such directly contributes to these objectives, in the interest of a more 
competitive EU aviation sector.  

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1.6. 

Duration and financial impact  

 Proposal/initiative of limited duration  

–    Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY  

–    Financial impact from YYYY to YYYY  

 Proposal/initiative of unlimited duration 

–  Implementation with a start-up period from YYYY to YYYY, 

–  Followed by full-scale operation. 

1.7.  Management mode(s) planned27  

 Direct management by the Commission 

–   by its departments, including by its staff in the Union delegations;  

–    by the executive agencies  

 Shared management with the Member States  

 Indirect management by entrusting budget implementation tasks to: 

–   third countries or the bodies they have designated; 

–   international organisations and their agencies (to be specified); 

–  the EIB and the European Investment Fund; 

–   bodies referred to in Articles 208 and 209 of the Financial Regulation; 

–   public law bodies; 

–   bodies governed by private law with a public service mission to the extent that 

they provide adequate financial guarantees; 

–   bodies governed by the private law of a Member State that are entrusted with 
the  implementation  of  a  public-private  partnership  and  that  provide  adequate 
financial guarantees; 

–    persons  entrusted  with  the  implementation  of  specific  actions  in  the  CFSP 

pursuant to Title V of the TEU, and identified in the relevant basic act. 

– 

If more than one management mode is indicated, please provide details in the ‘Comments’ section. 

Comments  

N/A 

27 

Details  of  management  modes  and  references  to  the  Financial  Regulation  may  be  found  on  the 
BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html 

EN 

28 

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

The Commission services are expected to carry out an evaluation to verify whether 
the objectives of the initiative have been reached, five years after the entry into force 
of  the  Regulation.  The  aim  is  to  verify  if  the  new  measures  created  a  more  equal-
playing field and if they helped maintain a high level of connectivity. This evaluation 
will be carried out based on the core progress indicators specified in the section on 
"indicators of results and impact". It must be in line with Commission requirements 
on evaluation. 

2.2.  Management and control system  

2.2.1.  Risk(s) identified  

The  following  risks  related  to  the  implementation  of  the  proposed  Regulation  have 
been identified: 

1) Retaliatory action directed at EU companies 

The adoption of redressive measures could lead to retaliation measures towards EU 
industry (for example relating to air carriers' access to services or to purchases of EU 
aircraft  by  third  country  carriers).  However,  the  proposed  Regulation  specifies  that 
the Commission may decide not to take action if it would go against Union's interest. 
The Commission will also have the possibility to design redressive measures with the 
aim of minimising the risk of side effects, including retaliation. 

2) Unexpected and unmanageable number of complaints 

Enforcing  the  proposed  Regulation  will  result  in  cases  to  be  dealt  with  by  the 
Commission and thus in an increase in administrative costs (labour costs, equipment 
and  material  cost,  as  well  as  overheads).  If  an  unexpectedly  high  number  of 
complaints is received, there may be a shortage of staff, management difficulties and 
additional  costs.  However,  the  proposed  Regulation  specifies  that  the  Commission 
may decide not to take action if the case does not raise a systemic issue, nor have a 
significant  impact  on  Union  air  carriers.  Furthermore,  the  proposed  Regulation 
foresees the possibility for the Commission to request Member States to support it in 
the investigation. 

2.2.2. 

Information concerning the internal control system set up 

-  The  Commission  would  impose  redressive  measures  via  implementing  acts,  in 
accordance with Article 291 of the TFEU. 

- Member States' control would be governed by Regulation No 182/2011 on control 
by Member States of the Commission's exercise of implementing powers. 

- The financial countermeasures targeting third country entities would be enforced in 
accordance with Article 299 of the TFEU. 

2.2.3.  Estimate of the costs and benefits of the controls and assessment of the expected level 

of risk of error  

N/A 

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29 

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2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures. 

N/A 

EN 

30 

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3. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

  Existing budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of  
expenditure 

Contribution  

Heading of 
multiannual 
financial 
framework 

Number  
[…][Heading………………………...………
……] 

Diff./Non-
diff.28 

from 
EFTA 
countries
29 

from 
candidate 
countries30 

from third 
countries 

within the 
meaning of 
Article 21(2)(b) of 
the Financial 
Regulation  

[5][06.01.01.01] 

Non-diff. 

NO 

NO 

NO 

NO 

Heading of 
multiannual 
financial 
framework 

  New budget lines requested  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure 

Contribution  

Number  
[…][Heading…………………………………
……] 

Diff./Non-
diff. 

from 
EFTA 
countries 

from 
candidate 
countries 

from third 
countries 

within the 
meaning of 
Article 21(2)(b) of 
the Financial 
Regulation  

[…][XX.YY.YY.YY] 

YES/N
O 

YES/NO 

YES/N
O 

YES/NO 

28 
29 
30 

Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations. 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidate countries from the Western Balkans. 

EN 

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3.2. 

Estimated impact on expenditure  

3.2.1. 

Summary of estimated impact on expenditure  

Heading of multiannual financial  
framework  

Number 

[…][Heading……………...……………………………………………………………
….] 

EUR million (to three decimal places) 

Year 
N31 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as 
necessary to show the duration 
of the impact (see point 1.6) 

TOTAL 

DG: <…….> 

 Operational appropriations  

Number of budget line 

Number of budget line 

Commitments 

Payments 

Commitments 

Payments 

(1) 

(2) 

(1a) 

(2a) 

Appropriations  of  an  administrative  nature  financed  from  the 
envelope of specific programmes32  

Number of budget line 

TOTAL appropriations 
for DG <…….> 

Commitments 

Payments 

(3) 

=1+1a 
+3 

=2+2a 

+3 

31 
32 

EN 

Year N is the year in which implementation of the proposal/initiative starts. 
Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, 
direct research. 

32 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 TOTAL operational appropriations  

Commitments 

Payments 

  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelope for specific programmes  

(4) 

(5) 

(6) 

TOTAL appropriations  
under HEADING <….> 
of the multiannual financial framework 

Commitments 

=4+ 6 

Payments 

=5+ 6 

If more than one heading is affected by the proposal / initiative: 

 TOTAL operational appropriations  

Commitments 

Payments 

  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelope for specific programmes  

(4) 

(5) 

(6) 

TOTAL appropriations  
under HEADINGS 1 to 4 
of the multiannual financial framework 
(Reference amount) 

Commitments 

=4+ 6 

Payments 

=5+ 6 

EN 

33 

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Heading of multiannual financial  
framework  

5 

‘Administrative expenditure’ 

Year 
2018 

Year 
2019 

Year 
2020 

TOTAL 

EUR million (to three decimal places) 

DG: MOVE 

 Human resources  

 Other administrative expenditure  

1.242 

0.02 

1.242 

1.242 

0.02 

0.02 

TOTAL DG MOVE 

Appropriations  

1.262 

1.262 

1.262 

3.726 

0.06 

3.786 

TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework  

(Total  commitments  = 
Total payments) 

1.262 

1.262 

1.262 

3.786 

TOTAL appropriations  
under HEADINGS 1 to 5 
of the multiannual financial framework  

Commitments 

1.262 

1.262 

1.262 

Payments 

1.262 

1.262 

1.262 

Year 
2018 

Year 
2019 

Year 
2020 

TOTAL 

3.786 

3.786 

EUR million (to three decimal places) 

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3.2.2.  Estimated impact on operational appropriations  

–    The proposal/initiative does not require the use of operational appropriations  

–    The proposal/initiative requires the use of operational appropriations, as explained below: 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

OUTPUTS 

Commitment appropriations in EUR million (to three decimal places) 

Enter as many years as necessary to show the 
duration of the impact (see point 1.6) 

TOTAL 

o
N

Cost  N

o

Cost 

o
N

Cost 

o
N

Cost  N

o

Cost  N

o

Cost  N

o

Cost 

Total 
No 

Total 
cost 

Indicate 
objectives and 
outputs  

 

Type33 

Avera
ge 
cost 

SPECIFIC OBJECTIVE No 134… 

- Output 

- Output 

- Output 

Subtotal for specific objective No 1 

SPECIFIC OBJECTIVE No 2 ... 

- Output 

Subtotal for specific objective No 2 

TOTAL COST 

33 
34 

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). 
As described in point 1.4.2. ‘Specific objective(s)…’  

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EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.3.  Estimated impact on appropriations of an administrative nature 

3.2.3.1.  Summary  

–    The  proposal/initiative  does  not  require  the  use  of  appropriations  of  an 

administrative nature  

–    The proposal/initiative requires the use of appropriations of an administrative 

nature, as explained below: 

EUR million (to three decimal places) 

Year 
2018 

Year 
2019 

Year 
2020 

TOTAL 

HEADING 5 
of the multiannual 
financial framework 

Human resources  

1.242 

1.242 

1.242 

3.726 

0.02 

0.02 

0.02 

0.02 

1.262 

1.262 

1.262 

3.786 

Other administrative 
expenditure  

Subtotal HEADING 5 
of the multiannual 
financial framework  

Outside HEADING 535 
of the multiannual 
financial framework  

Human resources  

Other expenditure  
of an administrative 
nature 

Subtotal  
outside HEADING 5 
of the multiannual 
financial framework  

TOTAL 

1.262 

1.262 

1.262 

3.786 

The  appropriations  required  for  human  resources  and  other  expenditure  of  an  administrative  nature  will  be  met  by 
appropriations that are already assigned to management of the action and/or have been redeployed within the Commission 
together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation 
procedure and in the light of budgetary constraints. 

35 

Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of 
EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research. 

EN 

36 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.3.2.  Estimated requirements of human resources 

–    The proposal/initiative does not require the use of human resources.  

–    The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below: 

 Establishment plan posts (officials and temporary staff) 

06 01 01 01 (Headquarters and Commission’s 
Representation Offices) 

XX 01 01 02 (Delegations) 

XX 01 05 01 (Indirect research) 

10 01 05 01 (Direct research) 

 External staff (in Full Time Equivalent unit: FTE)36 

XX 01 02 01 (AC, END, INT from the ‘global 
envelope’) 

XX 01 02 02 (AC, AL, END, INT and JED in the 
delegations) 

XX 01 04 yy 37 

- at Headquarters 

- in Delegations  

XX 01 05 02 (AC, END, INT - Indirect research) 

10 01 05 02 (AC, END, INT - Direct research) 

Other budget lines (specify) 

TOTAL 

Estimate to be expressed in full time equivalent units 

Year 2018 

Year 2019 

Year 2020 

9 

9 

9 

9 

9 

9 

XX is the policy area or budget title concerned. 

The human resources required will be met by staff who are already assigned to management of the action and/or 
have been redeployed within the Commission, together if necessary with any additional allocation which may be 
granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints. 

Description of tasks to be carried out: 

Officials and temporary staff 

Receive and process complaints addressed to the Commission, initiate proceedings and 
conduct 
legal  acts,  process  requests  for 
information, and process requests for review of Commission decisions. 

investigations,  prepare  Commission 

External staff 

N/A 

36 

37 

AC=  Contract  Staff;  AL  =  Local  Staff;  END=  Seconded  National  Expert;  INT  =  agency  staff; 
JED= Junior Experts in Delegations.  
Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines). 

EN 

37 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.4.  Compatibility with the current multiannual financial framework  

–    The  proposal/initiative  is  compatible  the  current  multiannual  financial 

framework. 

–    The proposal/initiative will entail reprogramming of the relevant heading in the 

multiannual financial framework. 

Explain what reprogramming is required, specifying the budget lines concerned and the corresponding 
amounts. 

–    The  proposal/initiative  requires  application  of  the  flexibility  instrument  or 

revision of the multiannual financial framework. 

Explain what is required, specifying the headings and budget lines concerned and the corresponding 
amounts. 

3.2.5.  Third-party contributions  

–  The proposal/initiative does not provide for co-financing by third parties.  

3.3. 

Estimated impact on revenue  

–    The proposal/initiative has no financial impact on revenue. 

–    The proposal/initiative has the following financial impact: 

(iv)   on own resources  

(v)   on miscellaneous revenue  

Appropriation
s available for 
the current 
financial year 

Budget revenue line: 

Article …………. 

EUR million (to three decimal places) 

Impact of the proposal/initiative38 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as necessary to show 
the duration of the impact (see point 1.6) 

For miscellaneous ‘assigned’ revenue, specify the budget expenditure line(s) affected. 

Specify the method for calculating the impact on revenue. 

38 

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net 
amounts, i.e. gross amounts after deduction of 25 % for collection costs. 

EN 

38 

   EN