EU/Georgia Agreement: common aviation area

2010/0186(NLE)

PURPOSE : to conclude the Common Aviation Area Agreement between the EU and its Member States, of the one part, and Georgia, of the other part

PROPOSED ACT : Decision of the Council and the representatives of the Governments of the Member States of the EU, meeting within the Council.

BACKGROUND : the Common Aviation Area Agreement between the EU and its Member States, of the one part, and Georgia, of the other part has been negotiated under a mandate received from the Council in June 2009. Air services between the EU and Georgia presently operate on the basis of bilateral agreements between individual Member States and Georgia. It is part of the EU neighbourhood policy to replace this network of bilateral agreements through the establishment of a Common Aviation Area between the EU and its neighbours. The negotiating mandate set the objective of establishing a Common Aviation Area (CAA) between the EU and Georgia. This would extend the rules and provisions of the single market for air transport in the EU to a large extent to Georgia in which European

and Georgian airlines would be able to provide air services without any restriction. Based on the negotiating directives of the mandate, a draft Agreement with Georgia was initialled by the two sides on 5 March 2010.

IMPACT ASSESSMENT : the Agreement ensures the gradual establishment of an EU/Georgia Common Aviation Area. A report prepared for the Commission in 2008 by consultants, estimated that an

EU/Georgia Common Aviation Area would generate 25,000 extra passengers and consumer benefits of up to EUR 17 million in the first effective year of market opening. The Agreement establishes a Joint Committee which will be responsible for reviewing the implementation of the Agreement and its effects.

LEGAL BASE :

CONTENT : The Agreement aims at:

- gradual market opening in terms of access to routes and capacity on a reciprocal basis;

- non-discrimination and level playing field for economic operators based on the principles of the EU Treaties;

- Alignment of the Georgian aviation legislation with EU legislation on issues such as safety, security and air traffic management.

The Agreement provides for the possibility for Georgia to join the main multilateral aviation agreement with European countries, the European Common Aviation Area (ECAA) signed in 2006.

FINANCIAL IMPLICATIONS : the proposal has no implication for the Union budget.