9 June 2017
Client Alert | Competition & International Trade | Brussels
As in many sectors today, the liberalisation and deregulation of international air transport has fostered unprecedented competition within the EU market and globally. At the same time, there is no multilateral framework that sets out the conditions governing competition in this sector leading to the risk of market distortions.
Regulation 868/2004 was intended to address this issue through unilateral action, but it has never been used as it was considered to be impracticable and not well adapted to the air services sector.
The Commission launched a public consultation on “a proposal for improved protection against subsidisation and unfair pricing practices” in late 2013-early 2014. The information gathered during such consultation was then complemented by studies, and informal meetings with the Member States and with the relevant stakeholders.
The text put forward by the Commission yesterday will now be examined by the Council and the Parliament for approval. It aims to address several of the regularly criticised features of this Regulation. We have highlighted below some of the features that seemed particularly relevant as regards the improvements that shall unquestionably result from the proposed text, but also as regards other aspects, mainly procedural ones.
This Client Alert highlights some of the features that seemed particularly relevant as regards the improvements that shall unquestionably result from the proposed text, but also as regards other aspects, mainly procedural ones.