The
European Commission on Thursday announced a package of proposals meant to
"boost the international competitiveness of the European Union's aviation
industry." The plan includes striking new aviation deals with non-EU countries,
establishing more effective regulations and holding the United States to its
commitment to loosen foreign-ownership restrictions.
Concerned
by the European aviation industry's relatively slower growth compared
especially with the Middle East and Asia, EC via its Transport Council plans to
consult in December with EU member states to determine priorities and establish
"EU negotiating mandates" for early 2013.
To
"safeguard competition," EC proposes to update the "impracticable"
regulations now governing EU commercial aviation. Those regulations were developed
in response to transatlantic "price dumping" concerns in the
aftermath of 9/11, but EC said it has "proven practically impossible to
substantiate unfair pricing practices in international aviation," owing to
challenges in "comparing complex fare setting systems applied by airlines
for 'like air services.' " EC also claimed that "subsidies, unfair
practices, inconsistent or discriminatory application of regulatory frameworks
and lack of transparency in financial reporting of companies in certain markets
are used to distort the market." As such, "it is legitimate to defend
the industry against unfair competition."
"Only
to be used as a last resort, a more effective and deterrent instrument is
required in order to ensure a level playing field," EC added. For example,
it wants "standard fair competition clauses" to be negotiated and
applied to "existing bilateral air services agreements between EU member states
and non-EU countries."
Meanwhile,
EC intends to pursue new aviation deals with "key and increasingly
important aviation partners such as China, Russia, the Gulf States, Japan,
India and countries in southeast Asia." To expand the existing Common
Aviation Area, EC also aims to complete by 2015 "EU-level aviation
agreements with neighboring countries such as Ukraine, Azerbaijan, Tunisia,
Turkey and Egypt."
The
Commission also seeks to persuade non-EU countries to ease "outdated"
restrictions on foreign ownership of airlines. "It is now time to address
this issue more vigorously and to take the additional steps envisaged in the
EU-U.S. air transport agreement to liberalize airline ownership and control in
order to allow airlines to consolidate and attract the investment they
need," according to EC's proposals. "This should also be pursued at International Civil Aviation Organization level."