VIENNA, Austria - In an effort to write new air transportation policy for the European Union (EU), the European Regions Airline Association (ERA) has adopted a vision of a more sensibly regulated industry.

A white paper adopted by the European Commission (EC) prior to the Sept. 11, 2001, terrorist attacks remains the guiding force for the EU's transportation policy. "It contains many confusing and contradictory statements. It continues to maintain and promote existing discriminatory polices," said Kjell Fredheim, a former ERA board member and an author of the vision. "The white paper promotes market manipulation through regulations that bias competition. The paper proposes policies that would erode consumer choice."

The ERA plan outlines areas where the association - and perhaps the commercial aviation industry as a whole - can support continued regulatory action, including full support of the European Aviation Safety Agency. The new agency is charged with protecting the flying consumer by "harmonizing" national rules into enforceable EU-wide regulations. Drafted correctly, the ERA believes the new agency will reduce the costs of doing business by eliminating duplicate rules and procedures. However, it also points to changes in "discriminatory" practices that favor state-subsidized railways.

"We need to be more pro-active and pre-emptive," said Mike Ambrose, the ERA's director general. "We want to make recommendations where we think [regulatory] efforts provide more benefits to the consumer.

"The vision spells out a balanced approach to regulation. Balanced because of the philosophy that we underline where we ought to work with the commission and we underline the things they are doing that we can support. If we stress the positive side, it is quite legitimate to turn around and say you are making a mess on the other side."

Perhaps more important than specific measurable goals outlined in the vision, such as the establishment of the European counterpart to the U.S. National Transportation Safety Board, Ambrose hopes to get a new mindset before the regulators. Ambrose wants each new proposed industry rule to be thoroughly justified complete with impact investigations that will assess the financial costs as well the probable outcome of a fully enforced new rule. The plan, he said, outlines a blueprint for future regulations. The time is right for a new plan, Fredheim told the ERA membership at its recent annual meeting in Vienna. A new European Parliament has begun and a new 25-member EC will be seated next month.

The Association of European Airlines (AEA) is ready to join in lobbying for a new transportation plan, said Vagn Soerensen, AEA chairman and CEO of Austrian Airlines. "On Oct. 14, we are issuing our action plan. It says more or the same as your action plan. It is extremely important to the industry that we coordinate our efforts," he told the ERA members.

Ambrose noted that the ERA plan has been mailed to every airline in Europe seeking support for what it sees as common goals. Instead of forming committees to draft a common industry plan, Ambrose said, "some association had to step forward and take the lead. ERA decided to take the lead."

However, as the industry begins to mount a lobbying campaign to influence the EC and national governments, Ambrose admitted the effort will be an uphill battle. "If we can persuade the EC that there is at least a need to review the current white paper, then this document will have achieved a great deal of success."

>>Contact: Kjell Fredheim, Fredheim International, 46 7 0917 6666; Mike Ambrose, ERA, 44 (0) 1276856495; Vagn Soerensen, Austrian Airlines, 43 5 1766 3642.<<

Seven Pillars Of Regulatory Wisdom

• Is the regulation necessary?
• Will industry self-regulation meet the identified need?
• If regulation is necessary, how much?
• How should legislation be developed?
• What are the effects of the legislation?
• Is the legislation even-handed?
• Will the legislation be enforced?

Source: A Vision for European Air Transport

ERA's Vision Goals

• Review the rules that govern travel agents and global distribution systems.
• Examine the current rules that govern ground handling and encourage competition.
• Support the EC's view that no single regulatory mechanism be used to reduce emissions. Member-nations should have the flexibility to encourage voluntary compliance, emissions trading and emission taxes.
• Aircraft taxes based on environmental impact will be ineffective because airlines are tied to aircraft either because of leases or operational concerns. A new tax is not likely to influence a decision to discontinue flying a particular airplane.
• As Eurocontrol adopts a uniform air traffic control system, the equipment it should be compatible to what will be developed in the United States so that aircraft can operate on both continents.
• The new European Aviation Safety Agency should make certain that standards are uniform in the EU without any national variants. Non-EU nations of Europe will be encouraged to join the agency for continent-wide standards.
• Consider establishing a EU counterpart to the U.S. National Transportation Safety Board to ensure that all accidents are investigated using the highest standards.
• Anti-terrorism safeguards should be standardized across the EU and member-nations should fund improvements fairly, regardless of transit mode.
• Airline and airport personnel should be screened for entry into secure areas across the EU so personnel can be redeployed without further security screening.
• If the EU insists on requiring information on passengers, then all transport modes should be required to provide similar data.
• The EU should allocate research funds to examine the threat of ground-launched missiles.

Source: A Vision for European Air Transport