Dáil Éireann debate -
Wednesday, 20 Feb 1991

Vol. 405 No. 4

Written Answers. - Air Transport Liberalisation.

Ivan Yates

Question:

127 Mr. Yates asked the Minister for Tourism, Transport and Communications whether under the proposed EC deregulation of aviation services in Europe, as proposed by the EC Commission, the competition rules of the Treaty of Rome will apply; if there will be any regulations or limits on the level of Government grant aid to airlines; and if he will outline the latest Commission proposals in this area.

Minister for Tourism, Transport and Communications (Mr. S. Brennan)

As part of the first package of air transport liberalisation measures adopted by the EC Council of Transport Ministers in December 1987, the Council adopted a Regulation (EEC) No. 3975/87 of 14 December, applying the competition rules of the EC Treaty to the air transport sector. The Commission have since made a number of Regulations declaring certain categories of agreements, decisions and concerted practices in the aviation sector as exempt from the competition rules, in accordance with the provisions of Council Regulation (EEC) No. 3976/87 of 14 December 1987, as amended by Council Regulation (EEC) No. 2344/90 of 24 July 1990. The Council is to decide on the further revision of Regulation 3976/87 by 31 December 1992 on the basis of a proposal from the Commission to be submitted by 1 July 1992.

The provision of State aid to airlines is governed by Articles 92 to 94 of the EEC Treaty.

I understand that the EC Commission, following a recent meeting with a number of European airlines, is at present formulating a number of new proposals which would enable airlines to take measures to counteract the effects of the Gulf crisis on traffic levels. The Commission's proposals are not yet available but are expected to be submitted to Council in the coming days.