Transport: Commission takes action on “open skies” civil aviation pacts

United Kingdom

The Commission has decided to take the final step in legal proceedings against those Member States that have concluded “open skies” civil aviation pacts with the United States. The Member States involved are Austria, Belgium, Denmark, Finland, Germany, Luxembourg, Sweden and the UK.

The US authorities have a practice of making an “open skies” agreement a condition of any airline alliance. These pacts violate European Union Treaty rules by allegedly distorting competition. The nations making the agreements allow US airlines to operate routes from and within the EU and obtain exclusive rights for their national operators to organise flights from their territories to the US. The Commission had expressly requested that Member States did not enter into bilateral aviation agreements with the US, believing that they would affect the Internal Market and so be contrary to EU obligations. It was also felt that any such arrangements would seriously handicap any future possibilities of agreeing an equitable air transport system with the US. As the eight nations ignored this request the Commission began legal proceedings.

The Council had granted the Commission a mandate to negotiate an aviation pact with the US, but the mandate is too limited for constructive negotiations to take place. When Member States declined to comply with the reasoned opinions put forward by the Commission in March 1998, and the final attempt at finding a common stance failed in October of the same year the Commission had little option but to pursue legal action.