VIENNA, Austria -- A year after it adopted a policy to wage a more "robust" battle to promote its interests before the European Commission (EC), the European Regions Airline Association (ERA) is wondering whether its crusade has even made a difference. The association, meeting here for its annual general assembly, remains concerned about regulations recently proposed by the EC.

The latest threat comes from regulators in the United Kingdom, said Mike Ambrose, the ERA's general director. The UK Department of Transportation two weeks ago requested that the EC drop weight-based fee standards in determining airline fees, which are used to underwrite national air traffic control agencies.

The British agency claims that weight has no relevance to the cost of providing air navigation services. Furthermore, the agency claims it makes economic and operational sense to encourage the use of larger aircraft.

The net effect would be to increase fees that small planes -- both turboprops and regional jets -- would have to pay while reducing the fees levied against mainline jets. Under this proposal, a jumbo jet may pay the same fee as a small turboprop commuter plane.

If regional carriers are forced to pay higher fees, then the airlines may be forced to drop uneconomical routes, said Peter Phillips, an ERA spokesman. The EC regulators frequently forget that 412 million European Union (EU) residents depend upon regional airports, Ambrose said. In fact, only 41 million live in the continent's capital cities. There are 375 airports in the EU served by only one regional carrier and 915 of the top 1,000 city-pairs are served by a single ERA member carrier.

Ambrose noted that this new proposal has not been adopted by the British Parliament. ERA member airlines and airports will be working with their local members of Parliament to defeat the proposal. But this is the third time in 12 years that the proposal has been drafted by transportation bureaucrats. The EC could adopt the proposal as way to fund Eurocontrol programs, as well as local air traffic management agencies, without relying on any action from national parliaments. Eurocontrol is a civil and military organization established to improve air safety and develop a seamless, pan-European air traffic management system.

In another regulatory matter, the EC is expected to release the first rules outlining the rights of disabled passengers. Ambrose said at the moment the new rules appear to apply only to the airlines and international railways. The early draft had a 100-word rule for international railways and 17 pages to govern the airline industry, said Andrew Clarke, ERA's air transport policy director. The regulations are "absurd" because they ignore the fact that many of the disabled passengers will first ride local railways to the airports, and these railways may not be required to accommodate their needs, Ambrose said.

The proposed rules are expected to be published later this month. Per EC regulations, the regulators are required to complete an impact statement as to how the disability rules would impact the industry. Ambrose noted that the EC has yet to ask the ERA or its member airlines for their assessments. "There [is] enormous cost potential for airports and airlines," he said.

In his address to the member delegates assembled in Vienna, Ambrose noted that the EC still fails to address the discriminatory nature of its rules that favor one sector of transportation, frequently rail, over the others. "It has missed a number of opportunities to address new issues 'horizontally' across all modes. It continues to perpetuate competitive disadvantages for air transport," he said.

Another rule on the horizon would require all airlines to pay into an insurance pool to reimburse passengers who may lose a ticket if an airline goes bankrupt. It is part of the Public Service Obligation rules (the EU program that is similar to the Essential Air Service program operated by the U.S. Department of Transportation). Ambrose questioned the logic of requiring financially sound airlines to tax their passengers to protect those flying on competing carriers.

The EC also is in midst of studying the impact of night flights on airport operations. The regulators, he said, may ban some night operations. "There has been seemingly haphazard industry consultation. The study should describe and evaluate the total effect on Europe and not just air transport. Just how they define 'night' can make a major difference in an airline's operation," Ambrose said.

>>Contact: Mike Ambrose, ERA, 44 1276 856495.<<