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Regulatory and public policy issues in Europe

IATA manages regulatory affairs and policy matters on behalf of its airline Members. This requires cooperation with many international regulatory bodies, such as, for Europe, the European Commission and the European Parliament.

Below are a number of important issues for Europe and a summary of IATA's regulatory involvement for each issue:

Airport issues:Slot Allocation Regulation, Airport Charges
- Slot Allocation Regulation
  Increasing congestion at European airports is a real concern. The European Commission sees market-led solutions as a part of the solution. In the EU, the slot allocation Regulation (EEC)95/93, based on the IATA system, has been in place since 1993. A Communication of the European Commission in April 2008 clarified a number of issues in order to ensure a better implementation of the exisiting rules on slot allocation and to improve the efficient use of scarce capacity at congested Community airports. In particular, it signals the acceptance of "secondary trading" of airport slots between air carriers at congested EU airports.
- Slot allocation is only required where there is insufficient airport capacity to meet demand. It does not increase capacity and is only a mechanism for distributing what is available.
- EU Airport Charges Directive
  In January 2007 the European Commission published a proposal for a directive on airport charges. The EU Council ( the 27 member states) and the EU Parliament concluded the legislative procedure in 2008. The purpose of the Directive is to set common EU standards for the pricing of airport infrastructure, and to impose a set of principles including non-discrimination, consultation and transparency.

Passenger rights issues: DBC, PRMs information to passengers on identity of operating carriers
- Denied-Boarding Compensation (DBC)
  Regulation 261/2004 on compensation to passengers in the event of denied boarding and of cancellation or long delay of flights, came into effect on 17 February 2005. It applies to all carriers departing from an EU airport and to EU carriers flying to an EU airport from a third country.
  The regulation introduces financial compensation for denied-boarding passengers and covers assistance offered to passengers in the cases of cancellation and long delays
  On 22 December 2008 the European Court of Justice (ECJ) issued a decision relating to the Regulation and its long debated "extraordinary cirumstances" which may exonerate air carriers from paying compensation in cases of cancelletion. The ECJ found that a technical problem in an aircraft, which leads to the cancellation of a flight is not covered by the concept of "extraordinary circumstances". Unless that problem stems from events which, by their nature or origin, are not inherent in the normal exercise of the activity of the air carrier concerned and are beyond its actual control, which would have to be proven by the carrier.
- Passengers with Reduced Mobility (PRM's)
  On 9 June 2006, the Council of the European Union adopted new rules aimed at strengthening the rights of disabled persons and persons with reduced mobility when traveling by ai, Regulation 1107/2006. Since July 200, discrimination against PRM's is prohibited and airlines are prevented from imposing addtional charges. As from July 2008, the service provisions of the regulation came into force: airports (or their agents) are now responsible for PRMs assistance (except on board). This regulation demonstrates a lack of international cooperation. IATA pushes regulators towards a more globally harmonised standard.
- Blacklist
  On 5 December 2005, the European Council adopted a Regulation (EC) No2111/2005 with the objectives of establishing a common list of banned carriers ("the blacklist") that do not meet relevant safety requirements. Carriers placed on the list are subject to inform their passengers of the identity of operating carriers. The "blacklist"is updated periodically (http://air-ban.europa.eu).

Revision of the third package of liberalization
- The air transport sector in the European Union was liberalised in three successive stages. The last stage of the liberalisation was the subject of a third "package" of measures, which applied as from January 1993. This package gradually introduced freedom to provide services within the European Union and led in April 1997 to the freedom to provide cabotage, i.e. the right for an airline of one Member State to operate a route within another Member State.
- With the coming into force of the so-called "revision of the third package" of airline liberalisation on the 1st of November 2008, airlines are required to include all taxes and charges in their published ticket prices. Also, price discrimination based on place of residence is banned

Facilitation & Security issues: API, PNR, etc.
- EU-US PNR Agreement
- In July 2007 the Presidency of the EU and the United States signed the "EU-US Agreement on the processing and transfer of passenger name record (PNR) data by air carriers to the United States Department of Homeland Security (DHS)". This Agreement replaces the Agreement on the sharing of passenger data of May 2004. It ensures that air carriers operating passenger flights to or from the US process PNR data, contained their automated reservation systems, as agreed between the US Administration and the EU.
- EU-PNR system
- On 6 November 2007, the European Commission adopted a proposal for the establishment of an EU-Wide system for the exchange of Passenger Name Records (PNR). This proposal is part of a "fight against terrorism package". In line with the 2007 EU-US PNR agreement, the proposal requires that air carriers make PNR data (for flights to and from the EU) available to national data agencies. This data can then be used for law enforcement and counter terrorism risk assesments. IATA stresses that any system must be harmonised, simple and aviation friendly as possible.

External relations: liberalisation of airline ownership and control requirements, US-EU Open Skies Agreement, etc.
- After seven years of negotiations the European Union and the United States signed an Air Transport Agreement on the 30 April 2007. This Open-Skies agreement allows for partial liberalisation of transatlantic air travel, and it replaces existing bilateral aviation agreementsa between the US and EU member states.
- IATA welcomed the new US/EU agreement as a step in the right direction creating many new opportunitie. IATA hopes that it will be the first step to a wider reform that will let carriers operate like any other business and pursue growth opportunities where they exist.

Regulatory and public policy issues in Europe

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