CELEX: 51990PC0234(01)
Language: en
Date: 1990-06-05
Title: AMENDMENT TO THE PROPOSAL FOR A COUNCIL REGULATION ( EEC ) ON FARES FOR SCHEDULED AIR SERVICES

5. 7. 90                               Official Journal of the European Communities                                No C 164/7
                                                                II
                                                       (Preparatory Acts)
                                                  COMMISSION
               Amendment to the proposal for a Council Regulation (EEC) on fares for scheduled air
                                                           services (')
                                                      COM(90) 234 final
                   (Submitted by the Commission pursuant to Article 149 (3) of the EEC Treaty on 6 June 1990)
                                                         (90/C 164/08)
               (') OJ No C 258, 11. 10. 1989 [COM(89) 373 final].
                       ORIGINAL PROPOSAL                                                  AMENDED PROPOSAL
                                                          Third recital
Whereas a system of double disapproval of air fares is an           Whereas the system of double disapproval of air fares is
important element in achieving further liberalization;              an important objective in achieving further liberalization
                                                                    and shall be introduced from 1 January 1993; whereas
                                                                    elements of this system shall be implemented
                                                                    immediately;
                                                         Seventh recital
Whereas in case of excessively high or low fares the                Whereas in case of air fares which are too high or too
Commission must be able to suspend the application of               low the Commission must be able to suspend the
an air fare;                                                        application of an air fare;
                                                        Article 2 (e) (ii)
(ii) an air carrier which, although it does not meet the            (ii) an air carrier which at the time of adoption of this
     definition set out in (i), at time of adoption of this               Regulation does not meet the definition set out in (i)
     Regulation:                                                          but:
                                                                           Article 2 (f) (new) (additional subparagraph)
                                                                    (f) a fifth-freedom air carrier means: an air carrier having
                                                                         the right to undertake the commercial air transport
                                                                         of passengers, freight and mail between two States
                                                                         other than its State of registration;
 ---pagebreak---  No C 164/8                             Official Journal of the European Communities                                     5. 7. 90
                       ORIGINAL PROPOSAL                                                   AMENDED PROPOSAL
                                                                                          Article 2 (h) (new)
                                                                    (h) zone of flexibility means: a pricing zone as referred to
                                                                        in Article 4a, within which air fares meeting the
                                                                        conditions of Annex I qualify for automatic approval
                                                                        by the aeronautical authorities of the Member States.
                                                                        The limits of a zone are expressed as percentages of
                                                                        the reference fare.
                                                                                          Article 2 (i) (new)
                                                                    (i) reference fare means: the normal economy air fare
                                                                        charged by a Community air carrier on the route in
                                                                        question: if more than one such fare exists, the
                                                                        arithmetic average of all such fares shall be taken;
                                                                        where there is no normal economy fare, the lowest
                                                                        fully flexible fare shall be taken.
                                                            Article 3
 1.    Member States shall approve scheduled air fares of            1.   Member States shall approve scheduled air fares of
 Community air carriers if they are reasonably related to           Community air carriers if they are reasonably related to
 the long-term fully allocated relevant costs of the                the long-term fully allocated relevant costs of the
 applicant air carrier, including the need for a satisfactory       applicant carrier, including the need for a satisfactory
 return on capital and for an adequate cost margin to               return on capital and for an adequate cost margin to
 ensure a satisfactory technical and safety standard.               ensure a high technical and safety standard.
 2.    In approving air fares under paragraph 1 Member              2.    In approving air fares under paragraph 1 Member
 States shall consider the needs of consumers and the               States shall consider the needs of consumers,
 competitive market situation.                                      employment and the competitive market situation.
 5.    Without prejudice to Article 5 (1), a Member State           5.    Without prejudice to Article 5 (1), a Member State
 shall permit a Community air carrier operating a direct            shall permit a Community air carrier operating a direct
or indirect scheduled air service within the Community,             or indirect scheduled air service within the Community,
 having given due notice to the States concerned, to                having given due notice to the States concerned, to
 match an air fare already approved between the same                match an air fare already approved between the same
city pairs. This provision shall not apply to indirect air          city pairs or published for a non-scheduled air service
services which exceed the length of the shortest direct             operated on the same route, provided both products are
service by more than 20 %.                                          equivalent in terms of quality and conditions. This
                                                                    provision shall not apply to indirect air services which
                                                                    exceed the length of the shortest direct service by more
                                                                    than 20 °/o.
                                                            Article 4
 1.    Scheduled air fares shall be subject to approval by          1.    Scheduled air fares shall be subject, pursuant to the
the aeronautical authorities of the State(s) concerned. To          provisions of Article 4a, to approval by the aeronautical
this end, an air carrier shall submit its proposed air fares        authorities of the State(s) concerned. To this end, an air
in the form prescribed by those authorities.                        carrier shall submit its proposed air fares in the form
                                                                    prescribed by those authorities.
 ---pagebreak---  5. 7. 90                           Official Journal of the European Communities                               No C 164/9
                    ORIGINAL PROPOSAL                                                AMENDED PROPOSAL
                                                                                  Paragraph 3 (a) (new)
                                                               The provisions of paragraph 3 shall be applicable, until
                                                                31 December 1992, to the fare specified in Article 4a
                                                                concerning zones 1 and 2 and for fares above these
                                                                zones.
                                                                                  Paragraph 3 (b) (new)
                                                                Fares below 90 % of the reference fare and not meeting
                                                                the conditions attached to the zones established in
                                                               Article 4a shall until 31 December 1992 require the
                                                                approval of both civil aviation authorities concerned.
                                                                                      Article 4a (new)
                                                                                       Fare structure
                                                                1.    There shall be two zones of flexibility on any
                                                               scheduled air service as follows:
                                                               — Zone 1: The fare for Zone 1 shall extend from 60 to
                                                                    90 % of the reference fare in line with the conditions
                                                                    of the discount zone as defined in Annex I.
                                                               — Zone 2: The fare for Zone 2 shall extend from 30 to
                                                                    59 % of the reference fare, providing the fare meets
                                                                    the conditions of the deep-discount zone as defined
                                                                    in Annex I.
                                                               2.     This Regulation shall not prevent the Member
                                                               States from introducing or maintaining more flexible
                                                               rules than the ones referred to in this Article.
                                                                                     Article 5 a (new)
                                                                1.    Air passengers shall have the right to purchase air
                                                               tickets anywhere within the Community, whether or not
                                                               via a travel agent, for flights within the Community.
                                                               2.     Air passengers shall have the right   to commence
                                                               without any extra charge their flight        with a ticket
                                                               purchased within the Community at any        airport within
                                                               the Community which is specified on the      ticket.
                                                       Article 6
At least once a year the Commission shall consult on           At least once a year, the Commission shall consult on
scheduled air fares and related matters with represen-         scheduled air fares and related matters with represen-
tatives of air transport user organizations in the             tatives of air transport user organizations, air carriers
Community, for which purpose the Commission shall              and unions responsible for those employed in the
supply appropriate information to the participants.            aviation sector in the Community, for which purpose the
                                                               Community shall supply appropriate information to the
                                                               participants. The report of such consultations shall be
                                                               submitted to the Council of Ministers and to Parliament.
                                                                                     Article 9a (new)
                                                               No later than 31 December 1992 the Council shall take a
                                                               decision on revising this Regulation on the basis of a
                                                               proposal which the Commission shall submit before
                                                               1 July 1991.
 ---pagebreak--- ^oCto^O                                      C^f^c^l]ourn^lofrh^Euron^nC^OmrnnnrL^^                                                            ^^^0
        ^oqualify for the discount ^one the following conditions must be met
        — minimum sta^ of not less than Saturday night or six nights,
        or
        — reservation for the entire trip, ticketing and payment to be made at the same time, except that
              r e s e r v a t i o n f o r t h e r e t u r n t n p m a y b e m a d e a t a l a t e r time,cancellationonly permissible prior to
              departureof outboundtraveland a t a f e e o f atleast20^Bo of t h e p n c e o f the ticket, changeof
              reservation onlvpermissible at a fee equal to thedifferencebetween the fare paid and the next
              higher applicable fare provided that the fare shall not extend belowB^O^Bo of the reference fare,
        or
        — if ofPpeakadvancepurchaseof not fewer than t^ days, reservationfor the entire trip, ticketing
              and pavment to be made at the same time, cancellation or change of reservation only available
              prior to departure of outbound travel and a t a f e e of at least 20 ^Bo of the price of the ticket
        r o q u a h f v for the deepdiscount^one,fares must meet the following conditions
        t round or circle trip travel,
             and
        2 anv two of the following
             ^     minimum stav of not less than t h e ^ u n d a y r u l e ^ o r six days,
             ^       ^     reservation for the enure trip, ticketing and payment to be made at the same time, cancels
                           lationor change of reservation onl^ permissible prior to departure of outbound travel and
                           a t a f e e of at least 20 ^Bo of the price of the ticket,
                           or
                    ^      mandatory advance purchase of not less than t^ days, reservation for the entire trip,
                           ticketing and payment to be made at the same time,cancellanonor change of reservation
                           only permissible prior to departure of outbound travel and a t a f e e of at least 20 ^Bo of the
                           price of the ticket,
                           or
                   ^       purchaseof thencket only p e r m i t t e d o n t h e d a y p r t o r to departureof outbound travel,
                           reservation to be made separately for both the outbound and mbound journeys and only in
                          the country of departure on the day prior to travel on the respective journeys,
             ^     passenger to be aged not more than 25 years of age or not less than 60 or father andBor mother
                   with children aged not more than 25 years travelling together ^minimum three persons^,
            ^ o f f p e a k , provided that
                     ^    the condition a t ^ m a y not be combined with the condition a t ^ a l o n e ,
                    ^     where the conditions at ^b^O and ( c ^ o r ^ a r e combined,the ^one of flexibility shall not
                          extend below ^O^Bo of the reference fare