EC/India agreement: air services

PURPOSE: to conclude the Agreement between the European Union and India on certain aspects of air services.

LEGISLATIVE ACT: Council Decision 2009/516/EC.

CONTENT: the Council authorised the Commission on 5 June 2003 to open negotiations with third countries on the replacement of certain provisions in existing bilateral agreements with a Community agreement. On behalf of the Community, the Commission negotiated an Agreement between the European Community and the Government of the Republic of India on certain aspects of air services in accordance with the mechanisms and directives in the Annex to the Council Decision authorising the Commission to open negotiations with third countries on the replacement of certain provisions in existing bilateral agreements with a Community agreement. The Agreement was signed on behalf of the Community on 28 September 2008 subject to its conclusion at a later date.

The Council has adopted this decision approving the conclusion of the agreement on certain aspects of air services with India.

In summary, the Agreement:

• replaces the traditional designation clauses with a Community designation clause. This permits all Community carriers to benefit from the right of establishment;
• addresses the issue of safety, within the context of Community designations;
• addresses the matter of aviation fuel taxation (a matter which has been harmonised by Council Directive 2003/96/EC);
• resolves conflicts between the existing bilateral air services agreements and Council Regulation (EC) No 2409/92 on fares and rates for air services which prohibits third country carriers from being price leaders on air services for carriage wholly within the Community; and
• resolves potential conflicts with EC competition rules.