Eastern air deal talks set for take-off

Date: 16/04/1998

By Chris Johnstone

THE European Commission is set to launch talks in the coming weeks with eastern Europe on a common aviation area, after resolving internal arguments over the framework for a deal.

The Commission's legal service has finally approved a formula for a staged liberalisation of east-west airline services before the countries concerned become members of the Union.

Commission negotiators are now only waiting for the go-ahead from a committee of national experts created to shadow their work to begin talks.

Finding the right formula for offering a multi-speed market opening to up to ten countries whose aviation markets have progressed at different paces has proved a tough challenge for officials.

Past liberalisation deals covered countries such as Sweden, Norway and Switzerland whose markets were just as developed as those of the Union.

However, Commission reports have already highlighted worries about the maintenance and safety records of some eastern and central European countries and the ability of their aviation authorities to guarantee that the EU's tougher standards can be met.

It was in response to those concerns that officials came up with the idea of a staged market opening, with checks that countries are moving towards western standards.

Commission transport officials are looking at transition periods of between five and seven years for full market freedoms to be offered to east European airlines.

Like their western counterparts, they would eventually be allowed to offer services between foreign cities such as Paris and London. In the interim period, restrictions on the number of direct flights between EU and candidate countries would be eased.

East-west bilateral aviation agreements are still characterised by a large amount of bureaucracy and limitations on what flights and fares can be offered. Rules for charter trips are particularly restrictive.

This has led to disputes between governments, with relations between Poland and the UK hitting such a low that flights were actually cancelled for a few days.

Ironically, perhaps, past antagonists British Airways and Polish airline Lot have now signed a partnership agreement.

One of the spin-offs of the push for liberalised east-west markets would be the opening up of the airline market between countries within eastern and central Europe as well.

Most of these countries erected barriers to each other's airlines in spite of encouragement from the Commission to maintain some of the strong links previously imposed through the Comecon trade bloc.