CELEX: 51992PC0274(01)
Language: en
Date: 1992-06-22
Title: Amendment to the proposal for a COUNCIL REGULATION (EEC) on licencing of air carriers

13 . 8 . 92                                Official Journal of the European Communities                                 No C 206 / 41
                          Amendment to the proposal for a council regulation on licencing of air carriers
                                                           ( 92 / C 206 / 04)
                                                         COM(92) 274 final
                  (Submitted by the Commission on 19 June 1992 pursuant to Article 149 (3) of the EEC Treaty)
                        COMMISSION TEXT (>                                                         AMENDMENTS
                                                          Amendment No 1
                           Article 2 (e)                                                           Article 2 (e)
(e) business plan means a detailed description of the air               (e) business plan means a description of the air carrier's
      carrier's intended commercial activities for the period in              intended commercial activities for the period in
      question, in particular in relation to the market                       question, in particular in relation to the market
      developments and investments to be carried out,                         developments and investments to be carried out,
      including the financial and economic implications of                    including the financial and economic implications of
      these activities;                                                       these activities ;
                                                          Amendment No 2
                           Article 2 (f)                                                           Article 2 (f)
( f) management account means a detailed statement of                   (f) management account means a statement of income and
      income and costs for the period in question including a                 costs for the period in question including a breakdown
      breakdown between air transport related and other                       between air transport related and other activities, as well
      activities, as well as between pecuniary and                            as between pecuniary and nonpecuniary elements.
      nonpecuniary elements .
                                                          Amendment No 3
                                                                                              Article 2 (f) (i) (new)
                                                                        { (i) effective control means a relationship constituted by
                                                                               rights, contracts or any other means which, either
                                                                               separately or jointly and having regard to the
                                                                               considerations of fact or law involved, confer the
                                                                               possibility of exercising decisive influence on an
                                                                               undertaking, in particular by:
                                                                               ( a) ownership or the right to use all or part of the
                                                                                    assets of an undertaking;
                                                                               (b) rights or contracts which confer decisive influence
                                                                                    on the composition, voting or decisions of the
                                                                                    bodies of an undertaking.
(•) For full text see COM(91 ) 275 final — OJ No C 258 ,
    4 . 10 . 1991 .
 ---pagebreak--- No C 206 / 42                           Official Journal of the European Communities                                     13 . 8 . 92
                      COMMISSION TEXT                                                          AMENDMENTS
                                                       Amendment No 4
                        Article 4 (1 )                                                        Article 4 (1 )
1.    No undertaking shall be granted an operating licence         1.      No undertaking shall be granted an operating licence
by a Member State unless air transport is its main occupation      by a Member State unless air transport is its main occupation
and the registered office and principal place of business is       and the registered office and principal place of business is
located in that Member State.                                      located in that Member State. An operating licence for a
                                                                   subsidiary shall be granted by the Member State where the
                                                                   subsidiary has been set up by the parent company .
                                                       Amendment No 5
                        Article 4 (2)                                                         Article 4 (2)
2.    The undertaking must be owned and continue to be             2.      The undertaking and its management must be
owned directly or through a majority shareholding by               controlled and continue to be controlled directly or through a
Member States and / or nationals of Member States. It must         majority shareholding by Member States and / or nationals of
at all times be effectively controlled by such states or           Member States . It must al all times be effectively and
nationals. The majority of the board must be representatives       decisively controlled by such states or nationals . The
of such states or nationals .                                      majority of the board of management and / or any other
                                                                   supervisory board must be representatives of such states or
                                                                   nationals .
                                                       Amendment No 6
                        Article 4 (3)                                                         Article 4 (3)
3.    Notwithstanding paragraph 2 air carriers which have          3.      Notwithstanding paragraph 2 an air carrier which , at
already been recognised in Annex I to Council Regulations          the time of adoption of this Regulation:
(EEC ) No 2343 / 90 and (EEC) No 294 / 91 retain their
rights under this and associated Regulations as long as they         (i ) either has its central administration and principal place
meet the other obligations in the present Regulation.                     of business in the Community and has been providing
                                                                          scheduled or non-scheduled         air services in     the
                                                                          Community during the 1 2 months prior to adoption of
                                                                          this Regulation ;
                                                                    (ii) or has been providing scheduled air services between
                                                                          Member States on the basis of third and fourth freedom
                                                                          traffic rights during the 12 months prior to adoption of
                                                                          this Regulation;
                                                                   (lii) or is an air carrier established subsequently to the
                                                                          adoption of this Regulation ;
                                                                   shall also be granted rights under this and associated
                                                                   Regulations as long as it:
                                                                     (i) meets the other obligations in this Regulation; and
                                                                    (ii) continues to have its central administration and
                                                                          principal place of business in the Community; and
                                                                   (iii) is not controlled , directly or indirectly , by any other
                                                                          non-Community interests.
 ---pagebreak--- 13 . 8 . 92                               Official Journal of the European Communities                                  No C 206 / 43
                        COMMISSION TEXT                                                           AMENDMENTS
                                                         Amendment No 7
                          Article 4 (6)                                                          Article 4 (6)
6. An air carrier must on request at any time be able to             6 . An air carrier must on request at any time be able to
demonstrate to the state responsible for the operating licence       demonstrate to the state responsible for the operating licence
and the Commission that it meets the requirements of this            that it meets the requirements of this Article.
Article .
                                                         Amendment No 8
                          Article 4 (7)                                                          Article 4 (7)
7.      Where a Member State is not convinced that an air            7.     Where a Member State is not convinced that an air
carrier meets the requirements of this Article it may ask the        carrier meets the requirements of this Article it may ask the
Commission to verify the situation.                                  Commission to verify the situation . The air carrier shall then
                                                                     be required to demonstrate to the Commission that it meets
                                                                     the requirements of this Article.
                                                         Amendment No 9
                        Article 5 (2) (a)                                                       Article 5 (2) (a)
( a ) An air carrier operating aircraft with less than 20 seats      (a) An air carrier operating aircraft with less than 20 seats
      and / or 10 tonnes MTOW shall at all times be able to               and / or 10 tonnes MTOW shall , pursuant to
      demonstrate     that   its   net  capital   is  at  least           paragraph 1 ( a) of this Article, at all times be able to
      ECU 100 000 .                                                       demonstrate that its net capital is at least
                                                                          ECU 100 000 .
                                                         Amendment No 10
                        Article 5 (2) (b)                                                       Article 5 (2) (b)
( b) Any other air carrier must at all times and in particular       ( b) Any other air carrier must if requested and in particular
      after 12 months of operation be able to demonstrate to              after 12 months of operation be able to demonstrate to
      the reasonable satisfaction of the licensing authorities            the reasonable satisfaction of the licensing authorities
      that it can meet its actual potential obligations for a             that it can meet its actual potential obligations for a
      period of 12 months.                                                period of 12 months.
                                                         Amendment No 1 1
                   Article S (3), introduction                                           Article S (3), introduction
3 . For the purposes of this Article an air carrier shall             3.    For the purposes of this Article an air carrier shall
provide all relevant information and, in particular for the          provide all relevant information and, in particular for the
purpose of paragraph 2 (b), it shall, at the beginning of each       purpose of paragraph 2 ( b), in so far as the Member State so
financial year and when substantial changes in operation,            requests , it shall , at the beginning of each financial year and
such as the operation of a new scheduled service or a                when substantial changes in operation, such as the operation
non-scheduled service to a new region, have been decided,            of a new scheduled service or a non-scheduled service to a
submit:                                                              new region, have been decided, submit:
 ---pagebreak--- No C 206 / 44                               Official Journal of the European Communities                                     13 . 8 . 92
                        COMMISSION TEXT                                                           AMENDMENTS
                                                           Amendment No 12
                        Article 5 (3) (c)                                                       Article S (3) (c)
(c) quarterly management accounts, unless the licensing                (c) quarterly management accounts, unless the licensing
     authorities require monthly accounts, to be provided no                 authorities require accounts for shorter periods , to be
     more than four weeks after the period to which they                     provided no more than four weeks after the period to
     refer; and                                                              which they refer; and
                                                           Amendment No 13
                          Article 5 (4)                                                           Article 5 (4)
4 . The licensing authority shall review the financial and             4.      If the licensing authorities deem the changes notified
economic situation of any air carrier at least every 12                under 3 to have a significant bearing on the finances of the air
months .                                                               carrier, they shall require the submission of a revised business
                                                                       plan incorporating the changes in question and covering at
                                                                       least a period of 12 months from its date of implementation
                                                                       as well as all the relevant information ( including the data
                                                                       mentioned in Annex I ) to assess whether the air carrier can
                                                                       meet its existing and potential obligations during that period
                                                                       of 12 months .
                                                           Amendment No 14
                            Article 7                                                               Article 7
A condition to own aircraft shall not be required for granting          (a ) An air carrier shall not be required to own aircraft.
or maintaining a licence but a Member State may require the
 aircraft to be used by an air carrier to be registered within the      (b) An air carrier may be required to have at its disposal
 Community .
                                                                             (through ownership , leasing contract or any form of
                                                                             longterm lease), aircraft technically fit for the safe
                                                                             conduct of the operations which are the object of the
                                                                             operating licence .
                                                                        (c) A majority of the aircraft used by an air carrier may be
                                                                             required to be registered in the Community or in the
                                                                             Member State issuing the licence.
                                                                        (d ) A Member State requesting registration of aircraft on its
                                                                             own register must ensure transfers from registers of
                                                                              other Member States without delay and fees.
                                                            Amendment No 15
                             Article 8                                                              Article 8
 An undertaking which carries out commercial aviation                   1.     The issuing and validity at any time of an operating
 activities must be in possession of an AOC . The AOC or an             licence is dependent upon the possession of a valid AOC ,
 accompanying document shall clearly set out the technical              in accordance with the criteria established in council
 organisation and expertise required in order to ensure the             Regulation (EEC) No . . ./ 92 of . . . 1992 on harmonization
 safe operation of the specified aviation activities.                   of technical requirements and administrative procedures .
 ---pagebreak--- 13 . 8 . 92                               Official Journal of the European Communities                                No C 206 / 45
                       COMMISSION TEXT                                                          AMENDMENTS
(a) An undertaking shall not operate an aircraft for the             2.     Until such time as the Council Regulation referred to in
      purpose of commercial aviation activities otherwise            paragraph 1 is applicable , national regulations concerning
      than under and in accordance with the terms and                the AOC or equivalent title concerning the certification of air
      conditions of an AOC . Annex I sets out the terms and          transport operators shall apply .
      format of an AOC .
b) An undertaking shall allow the licensing authority to
      examine all aspects of its intended or actual operations
      connected with an AOC .
                                                        Amendment No 16
                                                                                            Article 9 (la) (new)
                                                                     la .    It shall not be possible to grant a licence to an
                                                                     undertaking or to maintain the licence of an undertaking
                                                                     which does not meet the technical standards .
                                                                     In the long run technical standards shall refer to the JAA
                                                                     standards currently under development . Until then the
                                                                     Member States shall continue to decide on the basis of their
                                                                     national requirements .
                                                        Amendment No 17
                                                                              Article 14 (4), second subparagraph (new)
                                                                     The Commission shall decide within 30 days after reception
                                                                     of the appeal . If the Commission finds that the licence should
                                                                     have be granted it shall direct a motivated decision to the
                                                                     Member State concerned .
                                                        Amendment No 18
                        Article 17 (1 )                                                        Article 17 (1 )
1.      The Commission shall publish a report on the                 1.     The Commission shall publish a report on the
application of this Regulation by 1 January 1994 and every           application of this Regulation by 1 January 1995 and every
second year thereafter.                                              second year thereafter.
                                                        Amendment No 19
                                                                                             Article 17a (new)
                                                                     No later than 31 December 1992 the Commission shall
                                                                     present to the Council and Parliament a comprehensive
                                                                     report exploring the technical and legal requirements as well
                                                                     as the political perspectives for:
 ---pagebreak--- No C 206 / 46                           Official Journal of the European Communities                                   13 . 8 . 92
                        COMMISSION TEXT                                                      AMENDMENTS
                                                                   (a) the creation of a Community register for air carriers;
                                                                   (b) the creation of a Community Civil Aviation
                                                                       Authority .
                                                                   This report shall outline the different steps and a possible
                                                                   time table for their implementation .
                                                       Amendment No 20
                           ANNEX J                                                            ANNEX I
An AOC will indicate the:                                          A. Guidelines to be used in assessing a first-time applicant
                                                                       from a financial fitness point of view
1 . name and location of the Undertaking;
                                                                       1 . The most recent internal management accounts and,
2. date of issue;                                                           if available, audited accounts for the previous
3 . description of the type of operations authorized;                       financial year.
4. type(s) of aeroplane authorised for use ;                           2 . A projected balance sheet , including profit and loss
                                                                            account for the following two years .
5 . registrations marks of the authorised aeroplanes except
    that an air carrier may obtain approval for an alternative         3 . The basis for projected expenditure and income
    system to inform the authority about the aeroplanes                     figures on such items as fuel , tariffs , salaries ,
    operated under its AOC ;                                                maintenance, depreciation, exchange rate,
                                                                            fluctuations,      airport    charges ,   insurance,
6 . authorized areas of operation;                                          traffic/ revenue forecasts, etc . . .
7 . names of post holders;                                             4 . Details of the start-up costs incurred in the period
                                                                            from submission of application to commencement
8 . special limitation;
                                                                            of operations and an explanation of how it is
9 . special authorizations / approvals.                                     proposed to finance these costs .
The format of tha AOC is in appendix A.                                5 . Details of existing and projected sources of
                                                                            finance .
                                                                       6 . Details of shareholders, including nationality and
                                                                            type of shares to be held, and the articles of
                                                                            association. If the applicant is part of a group of
                                                                            companies, information should be supplied on the
                                                                            relationship between them.
                                                                       7. Projected cash-flow statements and liquidity plans
                                                                            for the first two years of operations.
                                                                       8 . Details of the financing of aircraft purchase / leasing
                                                                            including, in the case of leasing, the terms and
                                                                            conditions of contract .
                                                                   B. Guidelines to be used in assessing the continuing
                                                                       financial fitness of existing licence holders planning a
                                                                       change in their structures or in their activities with a
                                                                       significant bearing on their finances.
                                                                        1 . if necessary , the most recent internal management
                                                                            balance sheet and audited accounts for the previous
                                                                            financial year.
 ---pagebreak--- 13 . 8 . 92                 Official Journal of the European Communities                                No C 206 / 47
            COMMISSION TEXT                                                      AMENDMENTS
                                                           2.   Precise details of all proposed changes , e.g. change
                                                                of type of service, proposed takeover or merger,
                                                                modifications in share capital , changes in
                                                                shareholders, etc.
                                                           3 . A projected balance sheet, with a profit and loss
                                                                account for the current financial year, including all
                                                                proposed changes in structure or activities with a
                                                                significant bearing on finances.
                                                          4. Past and projected expenditure and income figures
                                                                on such items as fuel tariffs, salaries, maintenance,
                                                                depreciation, exchange rate fluctuations, airport
                                                                charges, insurance, traffic/ revenue forecasts , etc.
                                                           5 . Cash-flow statements and liquidity plans for the
                                                                following year, including all proposed changes in
                                                                structure or activities with a significant bearing
                                                                finances .
                                                          6 . Details of the financing of aircraft purchase/ leasing
                                                               including, the terms and conditions of contract.
                                                       C. Guidelines to be used in assessing the continuing
                                                          financial fitness of existing licence holders
                                                          1 . Audited accounts not later than six months after the
                                                               end of the relevant period and , if necessary, the most
                                                               recent internal management balance sheet.
                                                          2 . A projected balance sheet, including profit and loss
                                                               account for the forthcoming year.
                                                          3 . Past and projected expenditure and income figures
                                                               on such items as fuel tariffs, salaries, maintenance,
                                                               depreciation, exchange rate fluctuations, airport
                                                               charges, insurance, traffic/ revenue forecasts, etc.
                                                          4. Cash-flow statements and liquidity plans for the
                                                               following year .