FAIR COMPETITION ?

> regular change of bases (3 months?)

> Air crew declared in Ireland for social security contributions but working from other Member States

> Intense use of self-employed

Exemple 1

European survey February 2014 :6633 respondents (out of 65000 pilots concerned) in which 15% French / 15% Dutch / 11% British

Figures for this example 1

A micro-enterprise for each pilot with the status of self-employed

BOGUS SELF-EMPLOYED ?

FAIR COMPETITION ?

IMPACTS ON SAFETY ?

Where are self-employed ?

> Air crew officially based in Bangkok but working from Gatwick

> Intense use of temporary agencies based outside Europe

FAIR COMPETITION ?

Example 2

FLAG OF CONVENIENCE ?

FAIR COMPETITION ?

> State aids

> Same owner of theairline and of the airport

Biggest investors in some European airlines' share capital :

IAG Group (British Airways – Iberia – Vueling) : 9,99%

Alitalia (49%) – AirBerlin (29%)

Example 3

1998

Employment has not increased from 1998 to 2010 according to a study of the DG Move (European Commission) despite Low Cost air Carriers (LCC)and a growth more than 5% a year of the market. 2010

DG Move report

> « performance of work, subordination and the remuneration of the worker » (directive 2014/67/EC)

> “person who :

- undertakes genuine and effective work- under the direction of someone else- for which he is paid.”(European Commission, 11.12.2002 COM(2002) 694 final)

> “The essential feature of an employment relationship is that a person performs services of some economic value for and under the direction of another person in return for which he receives remuneration”Judgment of the Court of 3 July 1986. - Deborah Lawrie-Blum v Land Baden-Württemberg. - Case 66/85.

Characterize the notion of “worker”

a job

a boss

money

+

+

A worker

Conclusions

This is why some European regulations must be adapted :

- 868/2004/EC against subsidisation and unfair pricing practices from third countries

- 1008/2008/EC to better define the principal place of business and the use of the Air Operator Certificat (AOC)

- 83/2014/EC to improve the definition of the “home base”

- 465/2012/EC to improve fight against circumvention of law by using bogus home bases

Bogus self-employment, flags of convenience and other undeclared work must be sentenced

European air transport needs global fiscal and social agreements but also European fiscal and social measures to avoid

unfair global competition

Revive European air transport for future !

European airlines must be offensive to improve their competitiveness and not merely defensive but in this competition, a level playing field has a key role