COMMISSION STAFF WORKING DOCUMENT EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT Accompanying the document proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on safeguarding competition in air transport, repealing Regulation (EC) N° 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  SWD(2017) 183 final   COMMISSION STAFF WORKING DOCUMENT  EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT  Accompanying the document proposal for a  REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL  on safeguarding competition in air transport, repealing Regulation (EC) N° 868/2004 {COM(2017) 289 final} {SWD(2017) 182 final}  
 
 
 
Executive Summary Sheet 

Impact assessment on the revision of Regulation (EC) No 868/2004. 

A. Need for action 

What is the problem and why is it a problem at EU level?  
Stronger  global  competition  and  the  absence,  for  the  most  part,  of  sufficient  rules  on  fair  competition  at 
multilateral  and  bilateral  level  have  led  to  concerns  regarding  alleged  discriminatory  practices  and  selective 
subsidies  originating  from  third  countries.  The  EU's  current  tools  are  not  adequate  to  investigate  and  prevent 
such practices. 

What should be achieved?  
The main policy objective is to ensure fair competition between air carriers by effectively protecting European air 
carriers from unfair practices by third countries and third country entities.  
What is the value added of action at the EU level (subsidiarity)?  
Modifications  to  Regulation  (EC)  No  868/2004  can  only  be  done  at  the  EU  level.    One  new  central  element 
contained  in  the  proposed  Regulation  is  action  in  cases  of  'violation  of  applicable  international  obligations'. 
Rights vis-à-vis third countries, under agreements to which the Union is a party, cannot be exercised separately 
by individual Member States. 
B. Solutions 

What are the various options to achieve the objectives? Is there a preferred option or not? If not, 
why? 
A) Baseline scenario: no policy change. 
B) Increased international efforts at the global level aiming for a multilateral legal framework for fair competition 
in aviation and inclusion of expanded fair competition clauses in Air Service Agreements (ASAs). 
C) Major changes to the regime contained in Regulation (EC) No 868/2004 which would be replaced by a new 
comprehensive and effective EU legal instrument. 
D) Replacement of Regulation (EC) No 868/2004 by a new, more effective EU legal instrument combined with 
increased international efforts at global level and inclusion of fair competition clauses in ASAs (preferred option) 
What are different stakeholders' views? Who supports which option?  
The  Council,  the  European  Parliament,  several  Union  air  carriers  and  labour  organisations  support  replacing 
Regulation 868/2004 with a more effective instrument.  

C. Impacts of the preferred option 

What are the benefits of the preferred option (if any, otherwise of main ones)?  
The  preferred  option  D  is  expected  to  bring  the  strongest  positive  impact.  The  added  value  of  combined  EU 
action at all levels should benefit the EU air transport sector by increasing revenues. It should also contribute to 
the growth of employment at Union air carriers, airports and related industries.  
What are the costs of the preferred option (if any, otherwise of main ones)?  
Costs incurred by the administration of complaints and diplomatic negotiations are expected to be offset by the 
positive impacts on the EU aviation sector and the EU economy.  
What are the impacts on SMEs and competitiveness?  
No significant overall direct impacts on SMEs, positive impact on competitiveness of the EU airlines. 
Will there be significant impacts on national budgets and administrations?  
No. 
Will there be other significant impacts?  
In the long term, preserving competition should ensure the affordability and the quality of air services.  
Proportionality?  
The preferred policy option does not go beyond what is needed to achieve the policy objectives.  

D. Follow up 

When will the policy be reviewed?  
An evaluation will be carried out 5 years after the entry into force of the new rules. 

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