Pilots will soon be faced with a new legislative proposal that will affect our daily work: the consolidation of air transport liberalisation in Europe. This liberalisation was made in three successive stages. The last one (in 1992) concerned the most important and delicate aspects: free access to intra-community routes to EU carriers, harmonisation of the rules for obtaining an operating license, and regulation on fares and pricing.

Now, the EU Commission is about to publish a new draft Regulation to revise this "3rd Package", which constitutes the framework in which carriers operate in Europe.

The objective is twofold: First to simplify and consolidate existing rules, unifying definitions and filling the grey areas. Secondly, to achieve a uniform application of the rules to guarantee that carriers operating in Europe will compete on the same footing no matter where they are established.

ECA has been very active in sharing our concerns with the Commission prior to the publication of the Regulation. ECA asked for social measures to accompany the liberalisation, for a clear definition of "Principal Place of Business" (PPB) as a way to prevent "flags of convenience", and for clarity in the authorisation of foreign wet leasing.

In the meantime, the Commission has indicated that the new rules will address the risk of flags of convenience by strengthening the conditions needed to obtain and maintain an Operating License (OL): requiring better economic information, establishing a clear link between the License and the place where a substantial part of operations take place, and opening the possibility for the EU to revoke any OL not fulfilling the new requirements. However, the Regulation will not define "PPB" nor explain what "substantial part of operations" means. Nevertheless it establishes a clear link between OL and AOC by requiring that both must be obtained in the same country.

On foreign wet-leasing, the current rules are vague and allow abuses. The Commission proposes to limit wet leasing both in time (6 months, renewable once but not in consecutive seasons) and in geographical scope (only from countries where a reciprocal right exists). Also, the Regulation will require the CAA authorising the operation to follow a written procedure, thereby improving the safety control of this type of operation.

ECA and its Member Associations will continue to follow with keen interest this dossier in the EU Parliament and the Council. It is crucial that the consolidation of liberalisation respects both safety and the people travelling and working in the European Aviation Market!

See ECA position paper (PDF).