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Aviation in the European Union – an Overview
Daniel CallejaDirector of Air TransportEuropean Commission
EU-Latin America Civil Aviation SummitRio de Janeiro, 24-26 May 2010
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Presentation Outline
The Single EU Aviation Market – A Success of Regional IntegrationEU-Latin America Aviation MarketCommon Aviation Policy ChallengesGoing Beyond Europe: EU External Aviation PolicyConclusion: EU-Latin America Aviation Relations – Enhancing Cooperation
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The EU Today
• 27 Member States• 490 Million Inhabitants • One Single Market
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Before 1992: national markets within the EU were protected and fragmented through restrictive bilateral air service agreements between EU Member States
After 1992: One Single market without restrictions on market access and pricing
Common EU rules in all areas of aviation
The world’s largest and most successful example of regional market integration and liberalisation in air transport.
From 27 National Air Transport Markets to 1 Single European Market
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What Have We Achieved?Successes of the Single Market
…more competition…
Intra-EU routes with more than 2 carriers have increased by 310% between 1992 and 2009
…and…
Number of Intra-EU27 routes with more than 2 carriers
0
50
100
150
200
250
300
350
400
450
500
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Source: OAG summer schedules
Rou
tes
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What Have We Achieved?Successes of the Single Market
…more choice …Number of Cross-border Intra-EU routes has increased by 220% (1992-2009)
…and…
Number of international Intra-EU27 routes
0
500
1.000
1.500
2.000
2.500
3.000
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Source: OAG summer schedules
Nbr o
f rou
tes
(city
to c
ity)
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What Have We Achieved?Successes of the Single Market
…lower fares…Emergence of market for low-cost air services(now over 1/3 of the Intra-EU market).
Supply by carrier type within EU27
0
1
2
3
4
5
6
7
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Source: OAG w inter schedules
Wee
kly
seat
s av
aila
ble
(mill
ions
)
IncumbentOthersLow cost
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Passengers actually carried
0
5.000.000
10.000.000
15.000.000
20.000.000
25.000.000
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
EU–Latin America Aviation Relations:Growth in EU-South America & Caribbean Market (PAX)
22.1 million
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EU–Latin America Aviation Relations:Number of carriers operating (Scheduled Pax)
Number of scheduled passenger carriers
0
5
10
15
20
25
30
35
40
45
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
19
38
10
Largest Markets – on Latin-America sideLargest EU-Latin American Pax Markets - 2008
0
1.000.000
2.000.000
3.000.000
4.000.000
5.000.000
6.000.000
BR MX DO CU AR VE CO
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Largest EU-Latin American Pax Markets - 2008
0
1.000.000
2.000.000
3.000.000
4.000.000
5.000.000
6.000.000
7.000.000
8.000.000
ES FR UK DE NL PT IT
Largest Markets – on EU side
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Unprecedented Challenges
1. Global economic downturn2. Volatile fuel prices3. Increasing environmental pressure4. Security measures5. Increasing costs from congestion – on land and
in the air6. Most recently: volcanic ash in Europe
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Key Objective: “Ensuring Sustainability of the Sector’s Growth”Means:
1. Continue to lead towards highest safety and security standards – a pre-condition for growth
2. Ensure environmental sustainabilityComprehensive approach
3. Tackling the capacity crunchAvoid/reduce bottlenecks on the ground and in the air
4. Competitiveness of the industry Cost reductions, efficiency and consolidationNo bail-out – but accelerating structural reformRemoval of out-dated ownership and control restrictions
5. Share success of further market access
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I. Bringing existing bilateral agreements into line with Community law
II. The creation of a “Common Aviation Area”with neighbouring countries
Parallel process of market opening and adoption of EU legislation
III. Conclusion of ambitious global agreements with key partners (US, Canada, Australia, New Zealand, India, China, Russia, Brazil…).
Going Beyond Europe: The Three Pillars of the External Dimension
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Pillar I: Progress on the EC designation
104 non-EU states have accepted Community designation
Nearly 900 Bilateral ASAs (around half) have been brought into conformity with Community law (representing 70% of extra-EU traffic)
43 “Horizontal” Agreements covering 725 ASAs (since September 2004)
Horizontal Agreements with: Brazil, Chile, Mexico, Panama, Paraguay, Peru and Uruguay
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Pillar II: A Wider Common Aviation Area
58 States – Approx. 1 Billion inhabitants
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With key and like-minded partnersAim: to “normalise” aviation by combination of:
Market openingRemoval of investment barriers (airline ownership)Regulatory convergence
EU-US Agreement (1st and 2nd stages)First stage agreement has been in effect since 30 March 2008Second stage agreement initialled on 25 March 2010 following eight rounds of negotiations which started in May 2008.
EU-Canada Agreement Phasing in of full Open Aviation Area (OAA)All market aspects coveredInvestment & regulatory convergence key
Australia and New Zealand (Negotiations started in November 2008)Next: Brazil (Negotiating mandate requested 5 May 2010)
Pillar III: Comprehensive Agreements
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Conclusion: The EU Approach in a NutshellMarket integration: from national to single EU marketMarket liberalisation: Gradual but completeHigh standards: a sine qua non for growthCommon rules: level playing field, simplicity/clarityPooling of resources: European institutions (EASA) and ambitious EU projects (SESAR)Share successes and benefits with neighbours and key partnersAviation is international/global by its very natureStates and World regions share the same key challenges in aviation (so do Latin America and EU)International cooperation will help us meet the challenges.
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Fast growing EU-Latin America aviation market– we must ensure it is sustainable!Most Latin-American countries now recognise EU law and carriers – an important first stepThe EU wishes to enhance EU-Latin America aviation cooperation in all areasSignificant scope for technical cooperation (safety, ATM, environment…)Perspective for comprehensive aviation negotiations between the EU and BrazilWe wish to build on the success of this aviation summit!
Conclusion: EU-Latin America Aviation Relations
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Thank you!Obrigado!Gracias!
http://ec.europa.eu/transport/air/index_en.htm
