Aviation Intelligence Reporter – June 2008
Reform – maybe this time
The environment, ETS and the art of the possible – when greenhouse gases meet political reality
Single European Sky – and this time the Commission means it
Sovereignty – Help from an unexpected quarter
Low Cost Airports and State Aid – the Commission looks at Hahn
State Aid to Alitalia? Never – or perhaps not in 1996, anyway
A tale of two trade associations
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click hereReform – maybe this time
Somewhat lost in the clamour of the IATA AGM, and the very understandable clamour
surrounding fuel price, Giovanni Bisignani made an extremely interesting call on world
governments to reform and liberalise the world’s aviation system. Interesting because
as well as making the standard plea for action, he actually invited them to do something.
Specifically, he invited them to meet in Istanbul, before the end of the year.
…
The environment, ETS and the art of the possible – when greenhouse gases meet political reality
When the European Council and the European Parliament cannot agree on the final
terms of a proposed piece of legislation, the co-decision process calls for a ‘trialogue’ in
which the Council and the Parliament meet with the Commission to attempt to resolve
the outstanding issues. A trialogue is an informal meeting of the three institutions to find
common ground. The trialogue is chaired by a representative of the then current
Presidency of the Union (currently, but only until the end of June, Slovenia). After three
meetings – naturally – of the trialogue to resolve the outstanding issues (and several
more of the Council’s permanent representatives) on the proposal to introduce aviation
into the European Emission Trading Scheme (ETS), a deal was done. For all sides, the
alternative would have been very difficult – the cumbersome conciliation procedure.
…
A Single European Sky – and this time the Commission means it
Not to be outdone by their colleagues in the Environment Directorate General, the DG
Transport team has perhaps done more for the environment than all of the hot air, ink
and pulped paper that has gone into the debate about the ETS with their announcement
on the second attempt to introduce a Single European Sky (SES) into Europe. Because
they are polite they called it ‘Phase 2’, implying that this is building on from Phase 1, but
really it should be called ‘take 2’. This time, they hope to get it right.
…
Sovereignty – Help from an unexpected quarter
Sovereignty is dead: long live the King. For a very long time now, ‘sovereignty’ has been
the killer argument against any proposal for change in the ANSP industry. Anything that
risks bringing new thinking or commercial thinking into the ANSP debate can be
guaranteed a good bashing-about by those opposed to the idea. And almost always,
that opposition will use the blunt instrument of sovereignty. And a very blunt instrument
it is indeed.
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Low Cost Airports and State Aid – the Commission looks at Hahn
The paths for airports never seem to run smooth. On one hand, they are attacked for
behaving like monopolies. Next thing you know, the Commission comes knocking on the
door complaining that the airport is behaving ‘like a private market investor’. It gets even more confusing when the airport in particular is owned by a listed company, or what
might be called a private market investor in other parts of the globe. To be fair to the
Commission, the basis of their complaint in this case is that airports must follow market
based principles when giving assistance to airlines and there is concern that this is not
the case at Hahn.
…
State Aid to Alitalia? Never – or perhaps not in 1996, anyway
In the meantime, on July 9, the European Court of Justice will bring down a decision on
State aid for Alitalia – State aid from 1996. In 1996 Alitalia adopted a restructuring plan
for 1996-2000 which provided for an injection of capital to the amount of 2750 billion Lira
by it’s majority shareholder l’Istituto per la ricostruzione industriale SpA, an Italian State
body. At the time, the Commission’s examination of the aid found it to be compatible
with the common market, provided that (quite strict) ten conditions were met.
…
A tale of two trade associations
IATA has been dispatching emissaries to various aviation industry trade associations’
meetings this month, putting the case that airlines are hurting and looking for support
from their suppliers to address the issues. Jeff Poole was dispatched to the CANSO
AGM, Patricio Sepulveda to the Latin American meeting of the ACI.
…