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Monday, September 29, 2003

Points of Alleged Discrimination Against European Air Transport as Outlined by ERA

1) The European Commission (EC) applies more stringent rules for the approval of state aid to airlines than it applies for other modes of transport.

2) In air transport, direct subsidies are subject to stringent rules that cover public service obligations. These rules do not apply to other modes of transport.

3) In contrast to views frequently expressed by Europe's regulators, airline passengers pay more in direct taxation than do other travelers, due to the existence of taxes specific to air passengers.

4) Europe's airlines and most of Europe's rail transport are exempt from energy tax. But the EC has announced that it intends to apply a fuel tax specific to air transport alone.

5) Europe's airlines pay full market prices for energy that they use. Many of Europe's railways benefit from low electricity prices due to subsidies paid to Europe's coal industry.

6) Air passengers in general pay the full costs of current and future infrastructure. Much of the infrastructure for other transport modes is subsidized by government rather than charged to passengers through the fare structure.

7) The EC is developing "economic instruments to mitigate greenhouse gas emissions from air transport in Europe." No similar measures are planned for other modes of public transport.

8) Most air passengers pay a premium on their fares to cover costs of noise protection for members of the public affected by aircraft noise. No other mode of transport pays such a premium.

9) Despite the fact that air transport requires much less land than other modes of transport, and can be demonstrated to cause no greater noise disturbance to Europe's citizens than other modes, much of the air transport infrastructure is subject to night-time curfews. Similar closures do not affect other modes of transport.

10) The EC has indicated that the growth in air and road transport should be restricted by limiting infrastructure development. Meanwhile, it advocates continuing government subsidies to fund infrastructure development for other modes.

11) European Union law governs the allocation of scarce airport resources. Proposals to amend this law are targeted at reducing regional air services between regional airports and major hub airports. No similar legislation is planned for other modes of transport.

12) Europe's air passengers have, by law, been entitled to guaranteed compensation in the event of an accident since 1997, in addition to their rights under international treaties. No similar law has been enacted for other modes of public transport.

13) Since 1991, whenever an airline requires that some passengers should travel on a different flight from the one for which they have reservations -- for example when an unserviceable aircraft has to be substituted by a smaller aircraft for safety reasons -- the airline must pay denied boarding compensation. There is no equivalent legislation for other modes of transport.

14) Legislation to provide Europe's air passengers with compensation and assistance in the event of cancellations and delays, including events caused by factors outside an airline's control, was proposed by the EC in 2001, and is expected to become law later this year. No similar legislation is proposed for other modes of public transport.

15) Airlines' contracts with passengers were the subject of an investigation by the EC in 1997. Many contracts have subsequently been amended following reviews by various national authorities. The EC indicated in 2002 that it would publish a new legislative proposal on airline contracts. No similar action has been taken for any other mode of public transport.

16) The EC encouraged in 2000 the development of voluntary air transport commitments for passenger service standards. These became effective in 2002. The EC has taken no similar steps for other modes of public transport.

17) The EC has announced its intention to propose legislation governing standards for access to air transport for passengers with reduced mobility. No similar measure has been announced for any other mode of public transport.

18) ERA supports the European legislative framework that governs air transport safety, but the EC has not proposed equivalent legislation for other modes of public transport.

19) ERA supports the introduction of proposed new safety rules governing air transport operations. While these new rules were proposed in 2001, no similar action has been taken for other modes of transport.

20) ERA welcomes recently introduced legislation on safety incident reporting. This directive will lead to improved safety performance, but the EC has not said why this legislation should be applicable to air transport alone.

21) Air transport is now subject to new legislation on anti-terrorist security. No other mode of transport is subject to such stringent rules.

22) Air transport is responsible for bearing much of the cost burden of new security measures aimed at protecting the overall interests of states and their citizens. No other mode of transport is responsible for the cost burden of such measures.

23) The EC has proposed mandatory minimum insurance requirements for passengers, freight, and third-party liabilities. These requirements will be applicable to air transport but not to other modes of transport.

24) Alone among modes of public transport, air transport is obliged to purchase very substantial and costly third-party war risk insurance, including coverage for acts of terrorism, on the open insurance market.

Source: ERA study, "Discrimination Against Air Transport, Unjustified and Unjust."