PURPOSE: to allocate slots for air carriers for summer 2010 scheduling season and amend Regulation (EEC) No 95/93.

LEGISLATIVE ACT: Regulation (EC) No 545/2009 of the European Parliament and of the Council amending Regulation (EEC) No 95/93 on common rules for the allocation of slots at Community airports.

CONTENT: following a first reading agreement with the European Parliament, the Council adopted a regulation amending regulation (EEC) No 95/93 on common rules for the allocation of slots at Community airports.

To recall, the global economic and financial crisis is now seriously affecting the activities of air carriers. It has led to a significant reduction in air traffic over the winter 2008/2009 scheduling period. The summer 2009 scheduling period will also be affected by that economic crisis.

In order to ensure that the non-utilisation of slots allocated for the summer 2009 scheduling period does not cause air carriers to lose their entitlement to those slots, it is necessary to specify clearly and unambiguously that that scheduling period is affected by the economic crisis. This temporary measure will help airlines cut costs by allowing them to cut capacity more easily at busy airports, knowing that their slots will be safeguarded for the next summer season 2010.

Resulting in a compromise reached by the European Parliament and the Council, the Regulation stipulates that the Commission should continue to analyse the impact of the economic crisis on the air transport sector. Should the economic situation continue to deteriorate prior to the winter 2009/2010 scheduling period, the Commission could make a proposal to renew the arrangements contained in this Regulation for the winter 2010/2011 scheduling period. Such a proposal should be preceded by a full impact assessment.

ENTRY INTO FORCE: 30 June 2009.

The European Parliament adopted by 508 votes to 20, with 7 abstentions, a legislative resolution amending, under the first reading of the codecision procedure, the proposal for a regulation of the European Parliament and of the Council amending Regulation (EEC) No 95/93 on common rules for the allocation of slots at Community airports.

The amendments are the result of a compromise negotiated with the Council.

A new recital stresses that the Commission should continue to analyse the impact of the economic crisis on the air transport sector. Should the economic situation continue to deteriorate prior to the winter 2009/2010 scheduling period, the Commission could make a proposal to renew the arrangements contained in this Regulation for the winter 2010/2011 season.

Such a proposal should be preceded by a full impact assessment analysing its possible effects on competition and consumers and should be made only if it forms part of a proposal for a general revision of Council Regulation (EEC) No 95/93 on common rules for the allocation of slots at Community airports in order to resolve present slot allocation inefficiencies and to ensure the optimal use of scarce capacity at congested airports.

The Committee on Transport and Tourism adopted the report drawn up by Paolo COSTA (ALDE, IT) amending, under the first reading of the codecision procedure, the proposal for a regulation of the European Parliament and of the Council on amending Regulation (EEC) No 95/93 on common rules for the allocation of slots at Community airports.

MEPs are not prepared to accept a provision, which would allow the Commission to prolong the temporary measures by comitology to the following winter season. They suggest that the Commission may not decide but propose to renew all or part of these arrangements for the winter 2010/11 season, should the situation continue to deteriorate during the winter 2009/10 season. Such a proposal should be made only if it forms part of a proposal for a general revision of Regulation (EEC) No 95/93.

The Commission presented the main lines of a proposal to amend Regulation (EEC) No 95/93 on common rules for the allocation of slots at Community airports.

PURPOSE: to allocate slots for air carriers for summer 2010 scheduling season and amend Regulation (EEC) No 95/93.

PROPOSED ACT: Regulation of the European Parliament and of the Council.

BACKGROUND: the global economic and financial crisis is now seriously affecting the activities of air carriers. It has led to a significant reduction in air traffic over the winter 2008/09 scheduling season. The summer 2009 scheduling season will also be affected by the economic crisis. After 6 years of 3% average growth and zero growth in 2008, Eurocontrol is forecasting a 4.9% fall. More than 80% of European airports have seen a reduction in traffic (8% to 10% in passenger traffic and 25% to 30% in cargo traffic in January 2009), which means that the economic crisis is hitting the whole of the European air transport sector. The Commission takes the view that the current economic crisis and subsequent readjustments to services (suspension, reduction of frequencies) constitute exceptional circumstances that are having a negative impact on airline companies. Consequently, coordinators should interpret the provisions of Regulation (EEC) No 95/93 on the allocation of slots in such a way that airline companies do not risk losing the slots they fail to use because of the economic crisis (‘use-it-or-lose-it’ rule). Unless a decision is adopted to maintain the ‘grandfather status’ of slots, airlines might keep existing capacity in the face of significantly reduced demand, which would aggravate the current economic difficulties.

IMPACT ASSESSMENT: no impact assessment.

CONTENT: the point of reference for the Regulation is the allocation and utilisation of slots during one season (‘use-it-or-lose-it’ principle) and in particular the situation at the end of the season after the slots have actually been used. In particular, that Article stipulates that air carriers will not be entitled to the same series of slots in the next equivalent scheduling season, unless they can prove to the satisfaction of the coordinator that they have operated them, as cleared by the coordinator, for at least 80% of the time during the season for which they were allocated.

Furthermore the Regulation provides for calculation of usage at the end of the season, once slots have been operated, for the purpose of acquiring rights for the next equivalent scheduling season.

Article 10(4) gives a list of non-exhaustive reasons that can validly be used by air carriers to justify the non-utilisation of slots allocated during a scheduling season. The Regulation is based on the principle that the allocation and monitoring of the use of slots are the responsibility of the coordinator, who must not only carry out his duties in an independent manner but must also act in a neutral, non-discriminatory and transparent way. Therefore, neither the Commission nor any Member State may impose on coordinators any requirements that might undermine their independence.

Under these circumstances, there is a danger that Member States will interpret the Regulation differently, which would lead to a lack of consistency in the application of Article 10(4) within the Community. It is therefore proposed to insert a new Article 10c into the Regulation. This states that, for the purpose of Article 10(4), coordinators shall accept that air carriers are entitled to the same series of slots during the summer 2010 scheduling season as were allocated to them during the summer 2009 scheduling season in accordance with the Regulation. The Commission shall continue to analyse the impact of the economic crisis on the air transport sector. Should the situation continue to deteriorate during the winter 2009/10 season, it may decide to renew all or part of these arrangements for the winter 2010/11 season.

Although the allocation of slots for the summer 2009 scheduling season was completed on 31 January 2009, amendment of the Regulation will still permit airline companies to adjust their activities and reduce existing capacity in order to comply with the ‘use-it-or-lose-it’ rule. Since the summer 2009 season begins on 29 March, the proposed rule should enter into force as soon as possible. Otherwise, there is a major risk of legal challenges from air carriers allocated slots at airports where coordinators did not accept the justification of exceptional circumstances caused by the economic crisis during the summer 2009 scheduling season.

FINANCIAL IMPLICATIONS: there are no financial implications for the Community budget.

PURPOSE: to allocate slots for air carriers for summer 2010 scheduling season and amend Regulation (EEC) No 95/93.

PROPOSED ACT: Regulation of the European Parliament and of the Council.

BACKGROUND: the global economic and financial crisis is now seriously affecting the activities of air carriers. It has led to a significant reduction in air traffic over the winter 2008/09 scheduling season. The summer 2009 scheduling season will also be affected by the economic crisis. After 6 years of 3% average growth and zero growth in 2008, Eurocontrol is forecasting a 4.9% fall. More than 80% of European airports have seen a reduction in traffic (8% to 10% in passenger traffic and 25% to 30% in cargo traffic in January 2009), which means that the economic crisis is hitting the whole of the European air transport sector. The Commission takes the view that the current economic crisis and subsequent readjustments to services (suspension, reduction of frequencies) constitute exceptional circumstances that are having a negative impact on airline companies. Consequently, coordinators should interpret the provisions of Regulation (EEC) No 95/93 on the allocation of slots in such a way that airline companies do not risk losing the slots they fail to use because of the economic crisis (‘use-it-or-lose-it’ rule). Unless a decision is adopted to maintain the ‘grandfather status’ of slots, airlines might keep existing capacity in the face of significantly reduced demand, which would aggravate the current economic difficulties.

IMPACT ASSESSMENT: no impact assessment.

CONTENT: the point of reference for the Regulation is the allocation and utilisation of slots during one season (‘use-it-or-lose-it’ principle) and in particular the situation at the end of the season after the slots have actually been used. In particular, that Article stipulates that air carriers will not be entitled to the same series of slots in the next equivalent scheduling season, unless they can prove to the satisfaction of the coordinator that they have operated them, as cleared by the coordinator, for at least 80% of the time during the season for which they were allocated.

Furthermore the Regulation provides for calculation of usage at the end of the season, once slots have been operated, for the purpose of acquiring rights for the next equivalent scheduling season.

Article 10(4) gives a list of non-exhaustive reasons that can validly be used by air carriers to justify the non-utilisation of slots allocated during a scheduling season. The Regulation is based on the principle that the allocation and monitoring of the use of slots are the responsibility of the coordinator, who must not only carry out his duties in an independent manner but must also act in a neutral, non-discriminatory and transparent way. Therefore, neither the Commission nor any Member State may impose on coordinators any requirements that might undermine their independence.

Under these circumstances, there is a danger that Member States will interpret the Regulation differently, which would lead to a lack of consistency in the application of Article 10(4) within the Community. It is therefore proposed to insert a new Article 10c into the Regulation. This states that, for the purpose of Article 10(4), coordinators shall accept that air carriers are entitled to the same series of slots during the summer 2010 scheduling season as were allocated to them during the summer 2009 scheduling season in accordance with the Regulation. The Commission shall continue to analyse the impact of the economic crisis on the air transport sector. Should the situation continue to deteriorate during the winter 2009/10 season, it may decide to renew all or part of these arrangements for the winter 2010/11 season.

Although the allocation of slots for the summer 2009 scheduling season was completed on 31 January 2009, amendment of the Regulation will still permit airline companies to adjust their activities and reduce existing capacity in order to comply with the ‘use-it-or-lose-it’ rule. Since the summer 2009 season begins on 29 March, the proposed rule should enter into force as soon as possible. Otherwise, there is a major risk of legal challenges from air carriers allocated slots at airports where coordinators did not accept the justification of exceptional circumstances caused by the economic crisis during the summer 2009 scheduling season.

FINANCIAL IMPLICATIONS: there are no financial implications for the Community budget.