National Civil Aviation Development Forum Working Group on … · 2019. 7. 16. · 1 National Civil Aviation Development Forum Working Group on Regulatory Framework Summary of Activities

1

National Civil Aviation Development Forum

Working Group on Regulatory Framework

Summary of Activities & Priorities (For presentation to the Steering Committee on 9 September 2016)

Task

With the objective of improving the competitiveness of Irish aviation, report back to NCADF Steering Committee with recommendations for approval re the regulatory framework in which the aviation sector operates.

Membership, draft work programme and working procedures

The membership of the Working Group (WG) is set out in Annex 1 , which also details the composition of the sub-groups on the different topics

The draft work programme and working procedures are set out in Annex 2 (for approval)

In overview, the Group set itself the following approach: o monitor the policy environment to identify key topics under current / likely future

consideration by EU or ICAO, with particular emphasis on those topics affecting the competitiveness of the Irish aviation industry, including through the cost of regulation;

o identify policy opportunities which could be promoted by Ireland to improve the competitiveness of the Irish aviation industry;

o maintain a priority list of policy topics identified – whether representing risks or opportunities, and in each case produce a straightforward and brief position paper, covering risk/opportunity and associated implications, process and timeline by which regulatory change will be effected, recommended national strategic position, and actions to ensure successful outcomes.

The WG has met four times as a group, with numerous interactions by members on individual topics.

Position papers submitted now for approval

The WG identified ten issues for immediate focus and a short position paper on each of these is presented for approval in Annex 3. The ten issues are as follows:

Airport Charges – Europe

Airport Charges – National

ATC Strikes and Cost Efficiency

Aviation Taxation

Bilateral Rights / Connectivity / External Investment

Emissions, with particular reference to forthcoming ICAO conference and matter of Global Market Based Mechanism

Implications of Brexit for Aviation Sector

Passenger Rights, with particular reference to reform or Regulation 261

Safety and Security, with particular reference to the current revision of the EASA Basic Regulation

Social Issues and Competitiveness

Immediate priorities

All of the selected issues are current and important to the competitiveness of the aviation sector. The WG emphasises the immediate priority of two particular issues, and proposes that they receive a special focus from the NCADF and DTTAS over the next 6 months:

Implications of Brexit for Aviation Sector, given the far-reaching consequences for the sector and the need for early identification of remedial measures that will retain existing traffic rights and associated rules with regard to ownership and the regulation of the sector;

Safety and Security, given that the proposed revision of the EASA Basic Regulation is currently being

2

debated by the European Parliament and Council.

Work plan May-December 2016

A work plan is included in Annex 4 (for approval), consistent with the actions identified in each of the summary position papers.

Asks

The Regulatory WG requests the Steering Committee to:

Approve the WG’s work programme and working procedures (Annex 2)

Approve the position papers developed by the WG (Annex 3) and request DTTAS to reflect those positions in its engagement with the EU and international aviation policy making bodies as well as in policy making with regard to aviation in Ireland

Approve the WG’s work plan for May-December 2016 (Annex 4)

Endorse the WG’s proposal that the implications of Brexit for aviation sector and the revision of EASA’s Basic Regulation are treated as an immediate priority by both the WG and DTTAS over the next 6 months

3

Annex 1:

Work Group Membership and Sub-Group Participants

Work Group Membership

Organisation Nominated to RWG Position

Aer Lingus Laurence Gourley Director of Legal

Commission for Aviation Regulation Adrian Corcoran Director of Economics

daa Mary Kerins

Head of Health, Safety, Security and Environment

Department of Foreign Affairs and Trade Robert O'Driscoll Deputy Director, Trade Division II

DTTAS Monica Wallace Principal Officer

IAA Donal Handley Head of Corporate Affairs

IBEC Mark McAuley Director of the FAEI (Federation of Aerospace Enterprises in Ireland)

Ryanair Juliusz Komorek (Chair) Diarmuid Ó Conghaile (Secretary)

Chief Legal and Regulatory Officer Director of Public Affairs

Shannon Airport Patrick Edmond Group Strategy Director

Waterford Airport Desmond O'Flynn CEO

Sub-Group Participants Topic Lead Participants

Airport Charges – Europe daa and Ryanair Aer Lingus, CAR, DTTAS, Shannon Airport

Airport Charges – National daa and Ryanair Aer Lingus, CAR, DTTAS, Shannon Airport, IAA

ATC Strikes and Cost Efficiency IAA Ryanair, DTTAS (James Lavelle)

Aviation Taxation

Ryanair Aer Lingus, DTTAS


daa and Aer Lingus

Ryanair, DTTAS, Shannon Airport

Emissions DTTAS Ryanair, daa


Ryanair and Aer Lingus

All

Passenger Rights Aer Lingus Ryanair, CAR, DTTAS

Safety / Security IAA Ryanair, DTTAS

Social Issues and Competitiveness Ryanair DTTAS

mailto:[email protected]:[email protected]

4

Annex 2:

National Civil Aviation Development Forum Working Group on Regulatory Framework

Draft work programme and working procedures

22 June 2016 1. Introduction 1.1 Guiding statements from A National Aviation Policy for Ireland (August 2015):

‘The Government recognises the importance of aviation to Ireland and is committed to creating an environment in which the industry can maximise its potential for the benefit of the wider economy’

‘. . . create an environment that will encourage industry to increase connectivity to and from Ireland for the benefit of the travelling public, Irish tourism and Irish business’

‘. . . plot a pathway to enable the Irish aviation industry to build on its existing strong reputation to compete effectively in this growing global market place’

‘Ireland will participate actively in international fora to influence developments in the aviation sector’

‘Ireland will input to the proposed EU Aviation Package at an early stage to influence the development of proposed measures’

‘The Department of Transport, Tourism and Sport will consult with the NADF on the development of the international and regulatory agendas’

1.2 Guiding materials from DTTAS (April 2016):

‘The European Commission is promoting a pan-European strategy titled “An Aviation Strategy for Europe”, addressing issues such as market access, completion of the single European sky, increased connectivity, safety and security, protecting passenger rights and reinforcing the social agenda, environment and new technologies. This includes proposed changes to the EASA Basic Regulation 216/2008 for aviation safety. At the level of ICAO, the main policy issue is the implementation of a global scheme to reduce CO2 emissions from aircraft which may replace or supercede the EU’s existing emission trading scheme if adopted, while other aviation emissions may be presented for ICAO consideration and attention in the future.’

‘The regulatory framework for Ireland is now primarily driven by policy and regulation at the EU level, taking account of initiatives at the ICAO level. Regulatory changes may be adopted, often with significant impact on our industry, without any requirement to change national legislation. EU Regulatory policy is at a very developed stage before proposals are published and Ireland could influence this policy at an earlier stage in the process.’

‘Ireland’s ability to influence the regulatory framework requires input from industry and State at various phases of regulation development.’

1.3 Guiding statement from the NCADF Steering Committee (April 2016):

The NCADF working groups ‘will be charged with an explicit mission to improve the competitiveness of Irish aviation as their primary objective in reporting back to the Steering Committee in September.’

5

2. Work programme The Group will (i) monitor the policy environment to identify key topics under current / likely future consideration by EU or ICAO, with particular emphasis on those topics affecting the competitiveness of the Irish aviation industry, including through the cost of regulation, (ii) identify policy opportunities which could be promoted by Ireland to improve the competitiveness of the Irish aviation industry, (iii) maintain a priority list of policy topics identified – whether representing risks or opportunities, and in each case produce a straightforward and brief position paper, covering the following: Topic Risk/Opportunity and

associated implications

Process and timeline by which regulatory change will be effected

Recommended national strategic position

Actions to ensure successful outcomes

Suggested initial priority topics are the following:

Removal of aviation taxation in Europe;

Reducing the cost of EU ATC services and minimising service disruption through strikes;

Reducing the cost of use of EU airports through reform of Airport Charges Directive;

Ensuring that emissions regulation is reasonable, balanced and does not competitively disadvantage the Irish aviation sector;

Ensuring that passenger rights regulation is reasonable and does not competitively disadvantage the Irish aviation sector;

Ensuring that aviation safety and security regulation adheres to best practice, risk-based, outcome-focused approach.

Ensuring that regulatory developments in the context of the social dimension of the EU internal aviation market are balanced vis-à-vis the requirement to enhance the competitiveness of the aviation industry.

Maximising air connectivity by liberalising market access on international routes, having regard to the principles set out in A National Aviation Policy for Ireland

Building on the above, outlined below are a number of topics taken from A National Aviation Policy for Ireland, with a suggested approach for the Working Group in each case:

National Aviation Policy Topic Proposed approach for Working Group

Recognition of negative impact of aviation taxation on competitiveness of industry (page 6).

The WG will (i) develop a position paper on the negative impact of aviation taxation on the competitiveness of the aviation industry, (ii) identify taxes in other jurisdictions which most significantly impact the competitiveness of the Irish aviation sector, and (iii) propose EU / ICAO policy changes required to ensure the reduction/removal of such taxes.

Recognition of the significance of the Single European Sky, including its regulatory regime for air navigation services (pp. 56 and 59).

The WG will identify (i) the main areas of ATC service provision and cost-efficiency where regulatory improvements can enhance the competitiveness of the Irish aviation

6

industry by reducing the cost of ATC provision and minimising service disruption during ATC strikes, (ii) the specific improvements required at the EU and/or ICAO level.

Policy position on airport charges

‘The system of airport charging for Ireland should be fit-for-purpose and appropriate to the Irish aviation market and allow that market to develop in line with the objectives of this Policy, while also taking into account the Government’s statement of general principles for sectoral economic regulation and requirements of the EU Airport Charges Directive.’

‘An independent review of airport charges regulation will be completed by end-2015. The review will deliver options and recommendations for a future regulatory system for airport charges. The process will involve full consultation with impacted parties.’

‘The Department will finalise and publish its policy on airport charges regulation, and make preparations for any necessary changes to legislation, by mid-2016.’ (Action 5.1.2)

The WG will seek to arrive at a set of agreed summary principles which will (a) inform the Department’s conclusions/implementation plan under Action 5.1.2 and (b) form the basis for Ireland’s input to the development of any revision of airport charges regulation at EU level.. The objectives for the principles will be the following:

To stimulate cost efficiency, flexibility and responsiveness in the provision of airport infrastructure and services, including additional capacity where required to accommodate growth;

To promote pricing which is commercially responsive (e.g., rewarding efficiencies delivered by airlines, encouraging growth, facilitating delivery of required services and infrastructure in a manner described above);

If possible, under the right conditions, to obviate the need for complex, antagonistic regulatory determination processes by promoting commercial agreements.

Policy position on aviation emissions

‘Ireland will work with European partners to achieve the development of global international standards for market based measures on aircraft emissions.’

The WG will (i) identify the risks and opportunities to the Irish aviation industry arising from the creation of a global MBM for aviation CO2 emissions while the EU ETS for aviation CO2 emissions remains in place, and (ii) propose policy changes required to ensure that regulation of aviation emissions overall is reasonable, balanced and does not competitively disadvantage the Irish aviation sector.

Recognition of significance of EU legislation covering Air Passenger Rights (page 58)

The WG will (i) identify the impact on the competitiveness of the Irish aviation industry of proposed changes to EU Regulation 261/2004, and (ii) identify amendments required to ensure that passenger rights

7

regulation is reasonable and does not competitively disadvantage the Irish aviation sector.

Policy position on safety and security regulation

‘Ireland, through the Department and the IAA, will play an active role in the development of aviation safety regulations at an EU level and in ICAO.’

‘Ireland will allow greater flexibility to industry through the introduction of an outcome-focussed, risk-based approach to security regulation.’

Recognising the pre-eminent importance of safety and security, the WG will (i) identify instances where the quality and integrity of safety and security regulation is at risk as a result of the mixing of safety / security and unrelated issues, or where costs for the industry may be unnecessarily heightened and (ii) propose specific positions to be taken to prevent such risks / cost increases.

Policy position on social dimension of the EU internal aviation market

‘Ireland supports the development of a social dimension of the EU internal aviation market, and in other relevant international fora with a view to ensuring that labour rights are not eroded and with appropriate regard to the competitiveness of EU and Irish aviation.’

‘Ireland will support the EU’s work in examining the implications arising from the growth in new business models and more complex commercial arrangements for employment in the aviation sector and, in particular, the human factors implications of such arrangements.’

The WG will (i) identify the impact on the competitiveness of the aviation industry of regulatory changes in the context of the social dimension of the EU internal aviation market, and (ii) identify and investigate the rationale underpinning such changes, in order to ensure that Ireland’s engagement in the relevant policy-making fora is well informed and focused on balancing the competitiveness of the industry with the objectives of the social policies.

Policy position on traffic rights agreements with third countries (pages 24-27)

The WG will (i) assess the benefits accruing from a liberal approach to the granting of air traffic rights at national and EU level, (ii) make recommendations for Ireland’s engagement with the EU on negotiating mandates with third countries, (iii) make recommendations for Ireland’s approach to bi-lateral negotiations on air services agreements.

3. Working Procedures

• These Working Procedures are approved by the WG. They take account of, and in the event of discrepancy prevail over, the Working Groups (WG) – Rules and Procedures approved by the Steering Committee on 29 April 2016. Both documents are made available on www.dttas.ie/NCADF.

• Chair of the WG will be selected by the Steering Committee.

• The WG will approve its membership and any changes to it. In the absence of unanimity within the WG in respect of inclusion of a proposed member or exclusion of an existing member, the matter will be referred to the Steering Committee. The Chair and Members may suggest and/or canvass proposed members of the WG. Expressions of interest to join the WG should be made to the Chair who will in turn present those to the WG. Chair must inform the NCADF Secretariat of the members of the WG and of any changes to membership over time. The membership details to be provided are the name, title/position and

http://www.dttas.ie/NCADF

8

organisation/company of each representative and alternate, if any. The list will be published to the NCADF website and updated as appropriate.

• In respect of all formal meetings of the group, the following protocols will be observed:

o The agenda, minutes of the previous meeting and any papers will be circulated not less than 5 working days in advance.

o Brief minutes will be taken of each meeting, focussing on conclusions and actions. Draft minutes will be circulated for comment not more than 5 working days after the meeting, with any comments/amendments due back within a further 5 working days, with the final minutes circulated within a further 2 working days.

• The Group may establish sub-groups from time to time at its own discretion. Such sub-groups will organise themselves and report back to the Group as agreed by the Group. Members are also free to meet informally as they choose. It is expected that the Chair will from time to time meet bilaterally with individual members, for example in understanding the detail of member views on particular topics. Such discussions will be reported to the Group as appropriate.

• The initial meeting(s) of the Group will determine working procedures, membership and work programme. The conclusions on these points will be reported back to the Steering Committee at the latest 2 weeks before the Steering Committee meeting on 9 September 2016.

• The Group will endeavour to reach unanimous positions on most topics. In cases where it is unable to arrive at a unanimous position, it may choose to record divergences of opinion, where this is considered to be helpful.

• For any given position paper or set of policy recommendations, the Group will aim at the same time to produce an action plan for achieving the specified objectives. The Group would expect to draw on the assistance/advice of the NCADF Secretariat in DTTAS in producing such action plans.

• The Group will receive at least two opportunities to comment on any report/paper, e.g., position paper or policy recommendations, to be submitted to the Steering Committee. This will usually be at (i) draft and (ii) final draft stages. If there are changes at the final draft stage, this will require recirculation of the paper to the Group until no further changes are proposed.

• Formal correspondence with the Steering Committee will be through [email protected].

• Members (and alternates) should ensure that they are able to contribute freely and effectively to the work of the Group.

• Members (and alternates) will cover their own expenses, if any, incurred in the activities of the Group.

• The Group will arrange among its members for the provision of its own secretarial and/or administrative support. The NCADF Secretariat in D/TTAS will be available to facilitate the work of the Group as required.

mailto:[email protected]

9

Annex 3:

Position Papers submitted to Steering Committee for Approval

Airport Charges – Europe (Still in preparation)

Airport Charges – National

ATC Strikes and Cost Efficiency

Aviation Taxation


Emissions


Passenger Rights

Safety and Security


10


Position Summary 29.08.2016

NB: This paper has not been agreed by daa. Also, DTTAS has not been involved in the finalisation of the paper as the subject matter relates to a public consultation that DTTAS is currently running. The paper has been agreed by the other members of the RF WG.

Topic

Airport Charges: Relating to national input to any European discussions on airport charges. National economic regulation to be dealt with separately

Risk / Opportunity and associated implications

Context As per the Commission’s Aviation Strategy for Europe (2015), the Thessaloniki Forum of Regulators

o ‘will continue its work on the better implementation of the current Directive, and will provide the Commission with findings and recommendations on the use of market power assessment as a means of determining the optimal regulatory approach. Indeed when airports are subject to effective competition, the market should determine the level of airport charges and there is no need for regulation. However, when airports are not subject to effective competition, a specific regulatory framework may still be necessary. The Thessaloniki Forum should also work on the transparency of airport charges and effective airline-airport consultation. The Commission will then assess the extent to which the Airport Charges Directive may need to be reviewed.’

The opportunity is to ensure that sound principles underpin any European considerations of airport charges. These should include the following:

A robust market power assessment should provide the evidential base for the decision on the form and extent of regulation to be implemented and should be undertaken periodically. The regulation implemented should be proportionate to the identified market power, if any, and should impose no unnecessary burdens on the parties involved.

o Agreed principles for market power assessment should be established by the Commission in consultation with industry

In circumstances where regulation is deemed necessary it should seek to stimulate traffic, cost efficiency, flexibility and responsiveness in the provision of airport infrastructure and services, including the provision of additional capacity necessary to accommodate growth.

o The pricing/annual consultations provided for under the Airport Charges Directive should function as constructive, meaningful and transparent exchanges on pricing levels, pricing structures, service quality, traffic volumes, commercial revenues, operating cost, capital investment, and cost of capital. This annual process should not re-debate matters already decided in a multi-annual process, e.g. a price determination currently in force.

o All parties should work towards agreeing a constructive and reasonable interpretation of consultation requirements to help facilitate a useful and informative two-way dialogue. This should include consideration of constructive industry initiatives.

Promotion of pricing which is commercially responsive (e.g., stimulating and rewarding efficiencies, growth, facilitating delivery of required services and infrastructure).

Endorsement of the single till approach to regulation.

Where appropriate, under the right conditions, provision of a less intrusive form of regulation where the airport concludes commercial agreements with airlines, subject to compliance with EU and domestic competition law.

An agreed system providing for bilateral contracts could be expected to operate as follows: o The airport would publish (i) an intention to enter into negotiations with airlines on a

bilateral basis to conclude commercial contracts, (ii) Guidance as to the types of commitments that airlines would have to offer, based on transparent, objective and non-discriminatory criteria (iii) Whether such agreements were in place and with which airlines.

The airport would not be required to disclose (i) precise commitments offered in

11

bilateral contracts, (ii) specific charges under bilateral contracts. It would be open to the parties to include matters such as service quality, capacity

requirements, etc. in bilateral agreements.


EU Commission timeline for decision re reviewing Airport Charges Directive is expected to be clarified in autumn 2016


Input agreed principles, as described above, to European policy arena as appropriate.


Engage with Commission, Member States, Parliament and industry groups on the basis of the principles set out above

12


Position Summary Airport Charges - National

26.08.16 NB: DTTAS has not been involved in the finalisation of this paper as the subject matter relates to a public consultation that DTTAS is currently running.

Topic

Input to DTTAS consultation process re economic regulation of airports (Airport charges – national input)

Proposed principles

1. These comments relate to the economic regulation of Dublin Airport only. Other airports in

Ireland are not currently subject to systematic economic regulation by the Commission for Aviation Regulation (CAR).

2. The existing economic regulatory regime for Dublin Airport requires reform in certain respects,

reflecting market development.

3. Economic regulation should attempt to replicate the effects of competition to benefit current and future consumers.

4. Economic regulation should facilitate and take into account the conclusions of constructive and

meaningful engagement between the airport and airlines on airport capex (taking into account the need for efficient investment in large scale infrastructure), allowed return, opex, service quality, commercial revenues, traffic forecasts and charges.

5. The body responsible for economic regulation of Dublin Airport must be independent, and

should have a broad base of experience in utility regulation and expert knowledge of the aviation sector.

6. A combination of (i) legislative change (for example with regard to flexibility to vary the level

and scope of regulation depending on market circumstances, the independence of the regulator and the current appeal mechanism) and (ii) more constructive engagement between stakeholders on issues such as capex and opex allowances and allowed return, should lead to improved regulatory outcomes.

7. The type of economic regulation implemented should be tailored to encourage a shift

towards market-based outcomes. This requires flexibility to modulate the regulatory model, depending on market circumstances, which may necessitate legislative change. Such provisions would encourage development of normal commercial relationships as a potential alternative to the current regulatory interaction, so that if, for example, Dublin Airport were to reach individual commercial agreements on airport charges, infrastructure requirements and service levels with airlines accounting for 75% or more of passenger volumes, the requirement for the regulatory determination (setting a price cap) would be suspended for the forthcoming period. The form of such a solution would be subject to regulatory review.

a. If there was such a move away from RAB-based regulation, and a subsequent

13

return to using a RAB, then a new opening RAB would need to be established. The value of the opening RAB would be determined by the regulator, taking into account, inter alia, investment agreed in commercial agreements, or through capex consultations by airlines accounting for 75% or more of passenger volumes.

b. In the event of such a suspension of the price determination, consultation would continue to take place on an annual basis in line with the requirements of the ACD and consistent with the principle of constructive engagement,


Closing date for submissions to DTTAS consultation process is September 16. Timelines will be determined by DTTAS thereafter.


See proposed principles above


This will be a matter for DTTAS/Minister to decide upon when the consultation concludes and in the process followed thereafter.

Action requested of Steering Committee

Approve position presented for input to DTTAS consultation process

14


Position Summary ATC Strikes and Cost Efficiency

26.08.16

Topic

ATC Strikes and Cost Efficiency Air travel is essential to the free movement of citizens in Europe and a cornerstone of the European Single Market. Air traffic control is an essential service, which should be safeguarded from disruption caused by air traffic control industrial disputes. Ireland has some of the lowest ATC user charges in Europe, combined with the highest levels of productivity, and the gate-to-gate costs are well below the European average. Elsewhere in Europe, there are substantial inefficiencies. Irish airlines will benefit most from reductions in the cost-base of larger service providers which have higher support costs, higher user charges, and generally lower levels of productivity / efficiency.


Risk areas: 1. ATC Strikes:

o As per a recent study conducted by PwC on behalf of A4E (Airlines for Europe), 167 strike days were recorded in the EU in the 2010-2015 period (equivalent to 1 day in 13), affecting 475,000 flights. In 2016, there have been a significant number of ATC strikes – primarily French ATC.

o As an island nation, ATC strike action has a proportionality higher impact on the Irish economy compared to other EU member states. In the event of an Irish originated strike, the country is virtually closed for business during the period of disruption. Outside of Ireland, due to our geographic location, Irish airlines transiting Europe are severely impacted whenever strike action occurs in the core area, i.e. French airspace.

2. ATC Costs: o With regard to the overall cost efficiency of European ATM, the EC has commenced work for the third

reference period (RP3) of the EU Performance Scheme for the years 2020-24. The determination for RP3 must ensure that cost efficiency targets are focused on reducing costs within the large ANSPs and those where costs are well above the average of the total cost base.

Opportunity areas: Strikes: 1. The EC is conducting a study (via Ricardo Energy & Environment and York Consult) which is reviewing the

impact of strikes, possibly leading to policy recommendations. As an outcome to the study, the EC is expected to produce EU Guidance material on minimum notification periods and minimal levels of service during industrial action by the end 2016. The State, IAA and Irish airlines should actively support the current work of the EC.

2. ATC could be designated as an essential service in each Member State and the ability of ATC staff to strike should be restricted or prohibited in certain circumstances, such as ‘overflights’.

3. The State should support a number of measures proposed by A4E, which ask ANSPs and ANSP employees to voluntarily undertake a number of measures to mitigate the impact of strikes, including: o Actively and in good faith participate in arbitration or another form of conciliatory procedure consistent

with the relevant national law before threatening industrial action o Protect flights overflying the country affected by industrial action while ensuring this does not come at

the expense of flights to and from the country affected. o Provide a 21-day advance notification of strike action. o Provide a 72h advance notification of participation in industrial action, at individual employee level, so as

to improve the predictability of the level of disruption. o Implement cooperation mechanisms to explore means to minimize the impact of ATC service disruption. o Effect could be given to the above by ANSPs and ATC unions voluntarily signing up to a code of practice.

15

Reducing the cost of ATC provision: 1. The State should respond to the PRBs white paper, setting out what specific changes we should look for in RP3.


ATC Strikes: Q4 2016 & throughout 2017 Cost Efficiency: Work commencing now with regard to RP3 (2020). Most of the major work on the next determination will take place in 2018 and 2019.


See ‘Topic’ description.


ATC Strikes: Actively support EC work in this area, including engagement with York Consult concerning their current study for the Commission. Cost Efficiency: Respond to the PRB White paper and actively work with the EC with regard to RP3.


Approve position presented and request that DTTAS actively represent the policy in EU institutions and other relevant fora.

16


Position Summary Aviation Taxation

26.08.2016

NB: THIS PAPER WAS AGREED BY THE NCADF REGULATORY FRAMEWORK WORKING GROUP

MEMBERS OTHER THAN DTTAS. DTTAS’ POSITION ON THIS PAPER IS RESERVED, SUBJECT TO

AGREEMENT BY D/FINANCE

Topic

Removal of aviation taxation in Europe


Taxes on aviation harm consumers by increasing fares and reducing passenger demand/volumes, and are counter-productive in that they reduce the economic and social contribution (particularly in relation to employment) of the aviation sector through direct and indirect effects. Such taxes distort the market and represent a degree of impediment to free movement within the EU. Flat aviation taxes disproportionately affect regional airports (thus impacting regional development) because of the typically lower fares that are required at regional airports in order to attract traffic. The opportunity is to stimulate passenger traffic to Ireland and associated economic benefits through removal of existing taxes. The risk is that passenger traffic will remain depressed by such taxes and that the taxes in question will be increased where they already exist and/or proliferated in other Member States. As an indication of the impact of aviation taxes, the suspension by the Irish Government of the Air Travel Tax in 2013 was a key factor in the strong upsurge in growth at Dublin. Traffic at Dublin grew from 19m in 2012 to over 25m in 2015. With regard to Norway’s recent introduction of ‘Air transportation tax’, IATA estimated that this would reduce the overall demand for air travel by 5%, with an economic impact in the region of €150m. The main taxes in question are the following:

Austria: €7, €15 and €35 per departing pax respectively for short, medium and long-haul – ‘Air Transport Levy’

France: €4.44/€8.00 per departing pax depending on destination – ‘Civil Aviation Tax’; €1.13-€45.07 per departing pax depending on class and destination – ‘Solidarity Tax’

Germany: €7.50-€42.80 per departing pax depending on distance – ‘Air Transport Tax’

Italy: €7.50/€6.50 per departing pax depending on airport (Rome/other) – ‘Municipal Boarding Fee’

Spain: €0.59 per departing pax – Government safety and security charge (in addition to airport security charge); Catalan has also recently introduced a NOX tax.

UK: £13-£146 per departing pax depending on distance and class – ‘Airport Passenger Duty’ (excluding reference to tax as applied to small private jets)

Norway: NOK80 (+10% VAT on domestic flights) = ca€9 per departing pax – ‘Air transportation tax’

Sweden: Tax in consideration


In the European Commission’s Aviation Strategy for Europe (2015), the Commission stated: ‘Current aviation taxes and levies applied by Member States over and above normal profit tax may negatively impact connectivity and competitiveness. The Commission will publish an inventory of those taxes and levies and examine their impact.’ The Commission should be encouraged to complete this work quickly. However, the Commission position appears to be that it will not articulate any policy recommendations arising from this work. An advance on

17

this position would be to elicit a commitment to articulate best practice: i.e. not to tax aviation passenger. Support from the Council and/or Parliament for change is required to achieve more significant progress. A target would be for the European Commission to recognize the importance of the issue from the perspectives of transport, tourism and wider economic stimulation, as well as from a transport perspective.


Representing the interests of consumers, airlines, airports, the tourism industry, regional development and international business, canvass European Council, Commission and Parliament calling for change in this area. Industry to work with the European Commission to provide assistance as required to the Commission empirical study, and to ensure that MEPs are fully informed on the implications of currently existing taxes and the potential generation of social and economic benefit through their removal, including in less developed regions where air access is critical.


Through NCADF to provide to national policy makers and those involved with European institutions evidence-based materials outlining the impact of existing aviation taxation and estimated benefits of removal, having regard to the Irish experience. Industry also to engage directly with Commission and Parliament through Airlines for Europe and bilaterally – as appropriate. Subject to the completion by the Commission of its report on the impact of aviation taxes, consider targeting a discussion on this topic in the appropriate Council formation. This will be subject to agreement by D/Finance.

Action requested of Steering Committee: Approve position presented and request that DTTAS actively represent the policy nationally, through EU institutions and in other relevant fora.

18


Position Summary Bilateral Rights / Connectivity / External Investment

26.08.2016

Topic



Opportunity

There is considerable scope for improvement in connectivity to growing economic regions (particularly the

Middle East, Asia, South America and South Africa).

Liberalisation of traffic rights for both designated Irish carriers and those of third countries facilitates

increased services to/from Ireland and can result in increased traffic for airports and benefits to the economy

by attracting new business and expanding global links.

IAG’s acquisition of Aer Lingus gives rise to significant further long haul opportunities from Dublin both in

terms of direct services operated by Aer Lingus and indirect services connecting with other IAG carriers and

oneworld partner airlines via codeshare arrangements

Opportunity also exists to give European airlines access to new investment markets by removing restrictions

on investment from third countries (i.e. outside of EU).

Risk

Scope for market distortion if established principles of EU competition law are not complied with.


On-going


Irish Government to adopt an open and proactive stance on air transport agreements in consultation with stakeholders. Conclusion of new, or amendments to existing, air services agreements to be pursued by the Government in line with priorities identified following engagement with airports, airlines and tourism bodies on prospective route development opportunities and having regard to the objective of reciprocity with bilateral partners.

Regular dialogue between DTTAS and Irish airlines and airports with a view to resolving any issues that may impact the ability of those airlines to serve international routes (either directly or via codeshares) or the ability of other carriers to commence new services to/from Ireland.

Stakeholders (i) will be advised of the objective criteria to be used in evaluating any specific proposal to award

fifth freedom rights; and (ii) will, as far as possible, be afforded a reasonable opportunity to submit their views

expeditiously prior to a final decision being taken on any specific proposal to award fifth freedom rights.

A transparent and expeditious procedure to be established to process applications for conclusion of new, or amendments to existing, bilateral agreements.

Support the initiatives in the European Commission’s 'Aviation Strategy for Europe', including mandates to negotiate new EU-level agreements with certain countries. The Irish Government should in the interim seek to expedite changes to existing agreements and conclude new agreements on a bilateral basis. [Note: once the Council has mandated the negotiation of EU level agreements, the Irish Government will no longer have the ability to amend agreements on a bilateral basis.]

Support removal of restrictions on investment from outside the EU in EU airlines currently contained in Regulation (EC) No 1008/2008, on a reciprocal basis with third countries.


In consultation with stakeholders, to identify and prioritise targets for air transport agreements by end 2016 and pursue them in accordance with an action plan thereafter.

Airlines and airports to be invited as appropriate to participate in observer capacity in talks with third

19

countries.

State and relevant industry groups to promote at EU level necessary steps to remove current ownership restrictions contained in Regulation (EC) No 1008/2008.


Approve position presented and request that DTTAS actively represent the policy in EU institutions and other

relevant fora.

20


Position Summary Implications of Brexit for Aviation Sector

26.08.2016

Topic

Implications of Brexit for aviation sector


In view of the current rules of the EU Single Aviation Market, Brexit – unless accompanied by some form of agreement replacing the impacted traffic rights and associated regulations - will affect the existing rights of Irish licensed airlines to fly between the UK and the EU, within the UK, and between the UK and a range of other third countries, including the US and Morocco. The existing Common Travel Area between Ireland and the UK may also be impacted. Specific political consent will be required for existing traffic rights to remain available. While there are some bilateral international agreements between the UK and the EU Member States that pre-exist the EU Single Aviation Market, these are generally very restrictive. In the case of UK-Spain, for instance, there is potentially no right to fly at all as the relevant bilateral agreement has been repealed. If existing traffic rights are not retained, and particularly given the close links between Ireland and the UK, the negative impact of Brexit on Irish aviation will be substantial, as will be the economic consequences for Irish business and tourism and the ability of Irish consumers to travel. To give an indication of scale, in excess of 11m passengers (>110,000 aircraft movements) flow annually between Ireland and the UK. All of this traffic is put under threat by Brexit unless access right are preserved by a replacement agreement. Brexit also threatens the passenger volumes of Irish airlines within Europe (in addition to traffic to/from Ireland). Ryanair currently carries 40m passengers per annum between the UK and other European countries.


The timeline/process for the UK triggering Article 50 remains unclear. If this happens in Q1 2017, the UK would potentially exit in Q1 2019. Based on the typical pace of trade agreement negotiation and legislation formulation and enactment, and the volume and complexity of interlinking trade/political issues in the totality of the Brexit negotiations, the timelines would be very tight. On the other hand, the whole process may – by mutual agreement – take much longer, with existing arrangements remaining in place in the meantime.


It is essential that the current traffic rights of Irish licensed airlines are not adversely affected by Brexit with respect to the air transport market (i) between the UK and the EU, (ii) domestic within the UK, (iii) domestic within the EU Member States, (iv) between the EU Member States, (v) between the UK and those third countries with whom the EU has negotiated open skies agreements (such as the US and Morocco), and (vi) between the EU and those third countries with whom the EU has negotiated open skies agreements. The Common Travel area between Ireland and the UK must also be retained. A potential approach is for air transport to be treated as essential network infrastructure (as of fundamental economic and social importance as telecoms, energy and physical transport links (e.g. Channel Tunnel)) which both sides must ensure remains unaffected. The market should remain fully liberalized and deregulated, thus ensuring no disruption to airlines, business, tourism and personal travel. Specifically, this would entail (i) no restrictions for EU or UK airlines on traffic rights for routes in the market as detailed above, and (ii) equal treatment of EU and UK airlines as well as EU and UK nationals in terms of ownership and control rules. (Note that ownership rules could potentially impact the traffic rights of an Irish licensed airline within the EU, unless addressed as part of a replacement agreement removing the impact on the aviation sector of Brexit.) Solution options include UK accession to the European Common Aviation Area, an Open Skies Agreement

21

between EU and UK, the UK joining EEA/EFTA, or similar/equivalent agreements presented/titled in different ways. This is a non-exhaustive list. It is expected that such options will be explored intensively by both sides during the negotiation process. Given the uncertainties of the Brexit negotiation process, it would be important to campaign for the above objective to be achieved regardless of the general state of the Brexit negotiations. This is necessary to ensure that airline investment and planning and consumer purchasing decisions are subject to as little impact as possible. Uncertainty will be very damaging to business and consumer confidence. The resolution in respect of air transport could be concluded in full separation from the generality of Brexit negotiations.


Pursue solution through all channels of influence, including inter-Governmental agreement, Council, Commission, and European Parliament, supported with lobbying through industry and consumer groups.


Approve position presented and request that DTTAS actively represent the policy in national discussions

preparatory to Brexit, and in engagement with EU institutions, other national governments and other fora as

appropriate.

22


Position Summary Emissions

26.08.2016

Topic

Development of a Global Market Based Measure (GMBM) covering CO2 emissions from international aviation.


(i) Primary risk is retention of EU-ETS alongside a new GMBM thereby adding cost and complexity to Irish/European carriers and to national administrations in EU particularly.

(ii) Failure to agree a GMBM in the coming ICAO Assembly means the automatic reversion to the pre-2012 “full-scope” EU-ETS, beginning in 2017, with its attendant difficulties for international aviation and potential retaliatory trade action between trading blocs adversely affecting level of aviation.

(iii) Non-agreement at ICAO would likely prompt calls for a tax/levy on aviation activity to discourage increased travel and thereby contribute to a reduction in CO2 aviation emissions.

(iv) Primary opportunity is aviation’s enhanced public image with its attendant marketing possibilities for the airlines especially.

(v) A GMBM replacing the EU-ETS contributes to a leveling of the playing field. The GMBM might be simpler to operate than the EU-ETS but in any event, EU carriers and national administrations in the EU are well positioned to implement it with existing systems.


Ireland will definitely be covered in the first implementation phase, which will commence from 2020, along with the rest of Europe and other developed regions such as North America, Australia and Japan. Flights between and within these regions will be covered by the scheme and will thus affect all airlines, including the six Irish commercial carriers, operating on these routes. If a GMBM is agreed in September, it is likely that this will quickly be followed by a series of EU legislative proposals from DG CLIMA to give effect to the terms of the negotiated agreement. The details of such measures will require careful analysis and scrutiny by DTTAS, in consultation with stakeholders.


Support the creation of a single market based measure (no dual system of EU and Global) covering CO2 emissions from aviation on the basis of:

(i) No discrimination between aircraft operators on the same routes to prevent competitive disadvantage to European airlines;

(ii) A leading role to be played by ICAO in the MRV system to ensure transparent governance and uniform application of the implementation rules;

(iii) Coverage of the global scheme to be in accordance with that proposed by the ICAO President with the aim for a minimum of 75% emissions coverage of the global scheme under the initial phase increasing to a minimum of 90% coverage in the second phase.

(iv) MRV system design to be as close as possible to that established for the EU-ETS in order to minimise the necessity for system upgrades and procedures for European/Irish carriers and national administrations.


(i) Regular briefings with Irish industry and EPA in the run-up to the ICAO Assembly. (ii) Active participation of DTTAS delegation in EU preparatory meetings focusing on key elements of the

national strategic position. (iii) Seek to influence non-EU States through bilateral engagements. (iv) Leverage Ireland’s current status of Chair of the ABIS Group in ICAO Montreal to emphasise the key

elements of Ireland’s national strategic position.


Approve position presented and request that DTTAS actively represent the policy in ICAO, EU institutions and other relevant fora.

23


Position Summary Passenger Rights

26.08.2016

Topic

Passenger Rights


Opportunity • Current Regulation 261/2004 requires revision to ensure it is proportional, reasoned and consistently applied. • A revised Regulation is urgently required to meet the needs of consumers while not imposing disproportionate

costs on airlines and to address the legal uncertainty and complexity created by the existing Regulation. Subsequent case law has expanded the scope beyond the original intent.

• The proposed revision of Regulation 261/2004 by the European Commission is an opportunity to create a clear framework for passenger rights in the interests of both consumers and the industry

Risk • Revision of Regulation 261/2004 has been delayed with timelines currently unclear • The Commission’s Interpretative Guidelines published 10 June 2016 provide improved clarity in certain areas

but should not be considered as addressing the key flaws of the current framework and new legislation is urgently required. These Guidelines are not legally binding and are subject to further change in light of future court judgments.


The EU Co-decision procedure is currently stalled due to issues relating to Gibraltar. Next steps: formal adoption of Council’s political agreement (once reached); trilogue negotiations (EU Presidency with EP and EC); formal backing of trilogue deal by Council and by plenary session of the EP. Every effort is required at EU level to expedite this process.


The following elements should form the basis of a revised Regulation: • Reasonable triggers for compensation for delay • Extraordinary circumstances / technical faults (flight safety shortcomings): A binding non-exhaustive list of

circumstances in which compensation is not payable that would include certain technical delays within the scope of extraordinary circumstances (e.g. technical defects arising inflight, bird strikes, damage caused by lightning strikes).

• Missed connections: Compensation for connecting flights should be excluded from the scope of legislation as this would have a disproportionate financial impact on feeder carriers and would undermine existing IATA interline arrangements. This is particularly relevant in the context of the connectivity objectives contained in the National Aviation Policy.

• Reactionary delays / knock-on effects: Extraordinary circumstances exemption should not be limited to the flight concerned – it should also apply to knock-on delays where there is causal link provided that the airline has taken reasonable measures to minimize such delays.

• Obligation to reroute on other carriers: no obligation should be imposed to reroute on other carriers. • Use of third party claims agencies: While recognizing the entitlement of passengers to legal representation,

provisions should be included to prevent unfair / unlawful practices by third party claims agencies. Airlines

should have the option not to deal with third party claim agencies.

• Care: reasonable and proportionate financial caps should be imposed on the care and assistance obligations

24


• Industry associations and the government should use their best efforts to ensure that the revision of Regulation 261 is prioritised.

• Ongoing consultation between airlines and the Government to ensure that agreed positions are represented in negotiations for the revision of Regulation 261.


Approve position presented and request that DTTAS actively represent the policy in EU institutions and other relevant fora.

25


Position Summary Safety and Security

26.08.16

Topic

Safety and security


Context: The Irish civil aviation industry is independently verified by ICAO, EASA and the EC as having amongst the highest levels of safety and security regulation and compliance in the world. Maintaining the highest level of safety and security compliance is critically important to ensuring the sustainability & further expansion of the entire Irish civil aviation industry. Opportunity: 3. Our top safety/security reputation should be maintained through appropriate investment and

regulatory support and promoted and marketed internationally to (a) encourage inward investment in the Irish civil aviation industry, and (b) to correct misperceptions.

4. Ireland has been at the forefront of performance driven risk-based safety oversight and regulation for a considerable period, which is the direction of international & European legislative developments.

Risk areas: 5. The current Revision of EASA Basic Regulation 216/2008 may introduce changes that lead to the

centralisation of functions and the gradual shift of oversight to EASA away from the National Aviation Authority to the detriment of the State, e.g. temporary emergency transfer of certain oversight functions from the NAA to EASA.

6. Factually inaccurate, misleading and damaging public statements are routinely issued by external entities with regard to Ireland’s top safety record. This creates misperceptions that could discourage investment or development of the Irish civil aviation industry to the benefit of others.

7. Aviation safety and security are highly specialised areas and, to avoid distorted outcomes, decisions must be made by the competent expert bodies (including industry representatives), with solutions formulated to address industry needs and concerns, based on relevant, valid and justified safety and security considerations.

8. In recent times, various assertions have been made around the concept of ‘new business models’, which are misleading and not empirically based. This presents a negative perception of some parts of the aviation system (air operator and safety oversight) and risks safety regulation being shaped with reference to unrelated considerations.

9. The proposed EASA Basic Regulation and the negotiation process underway present a risk that the safety focus of EASA will be diluted by establishing a legal requirement to have regard in decision-making to non-safety concerns, e.g. social objectives. Changes which represent a deviation from the principle of an outcome-focused, risk-based approach are detrimental to the achievement of safety and the continuing development of the aviation sector

10. Failure to comply with safety and security regulatory requirements can lead to serious consequences at a national level (e.g. EC Art. 15 security finding against Dublin Airport in 2012). Furthermore, airport operators require flexibility to allow for necessary investments (either people and/or systems) to fulfil unanticipated safety and security regulatory requirements – this is particularly prevalent in relation to rapid changes concerning counter-terrorism measures where these are not funded by the State.

11. Overlapping regulation must be avoided to avoid duplication of effort – failure to ensure that one

26

mechanism of safety regulation exists, can undermine safety and lead to increased costs.


The next stage in the EASA Basic Regulation amendment process is the consideration of amendments by the Transport Committee of the Parliament. This is planned to happen in September. Thereafter, the Parliament, Council and Commission will work towards finalizing the regulation, which is likely to mature in 2017. All other areas referenced above will evolve over time.


Maintaining the highest level of safety and security compliance is critically important to ensuring the sustainability & further expansion of the entire Irish civil aviation industry. Through Council and industry channels and by engaging with European institutions:

Ensure that all proposed amendments to the Basic Regulation are based solely on safety and/or security. All elements which do not relate to safety/security and which deviate from the principle of a performance- and outcome-focused, risk-based approach to regulation and oversight must be removed, e.g. inclusion of issues which would more properly be debated in the context of a social/employment agenda;

Support the positive (safety- and/or security-enhancing) elements of the proposals.

Support the creation of a European-wide safety data sharing programme subject to strict protocols and controls.


At all forums, the State should actively promote the top safety and security record of the State to (a) encourage inward investment in the Irish civil aviation industry, and (b) to correct misperceptions. Policy alignment and consistency between various regulatory authorities and Government Departments in relation to the delivery of appropriate safety and security framework is therefore important. Campaign through all available channels against the inclusion in the EASA Basic Regulation of matters unrelated to safety, in particular questions relating to the ‘social agenda’.


Approve position presented and request that DTTAS actively represent the policy nationally, through EU institutions and in other relevant fora.

27


Position Summary 26.08.2016

Topic



Context The primary purpose of European aviation policy is to facilitate air transport by harmonising the

economic, safety, security and environmental rules applying to aviation. The Transport Chapter of

the EU Treaty gives the EU competency in these matters. The Transport Chapter does not cover

social and employment matters, rather these fall under the Social Policy Articles of the Treaty. In

that context, this paper is restricted to the social issues and competitiveness of Irish airlines

operating within the EU single aviation market under Regulation 1008/2008. DTTAS is responsible

for civil aviation policy and legislation at national and EU level. Other Departments are responsible

for social and employment policy and legislation.

Regulation No 1008/20081, which establishes the single market in aviation, has one reference to

social legislation, in recital 9: ‘With respect to employees of a Community air carrier operating air

services from an operational base outside the territory of the Member State where that

Community air carrier has its principal place of business, Member States should ensure the proper

application of Community and national social legislation.’

Regulation No 465/2012 required that social insurance contributions should be paid treating the

home base country as the relevant jurisdiction. The amendment in question was opposed by

Ireland in the decision-making phase.

Note that the Posted Workers Directive may also have relevance in some cases; although under

ICAO rules employees working on aircraft flying international routes are properly governed by the

labour law of the country in which the airline is registered and licensed.

At European level, there are two main official groups which consider the ‘social dimension’ of the

internal aviation market:

o 1. The Social Dimension Subgroup of the Market Access Committee (latter was set up

under Regulation 1008/2008 to ‘assist the Commission’), with DTTAS representing Ireland

on both.

o 2. Working Group on New Business Models established in 2014 by EASA’s Regulatory

Affairs Group, on which the IAA is represented. The Working Group produced a report in

April 2015, largely focussed on enhancements in reporting and monitoring systems. It

noted that there is no evidence of a link between different employment models and

occurrence reporting. The Working Group has now been renamed the EPAS Action Group

(European Plan for Aviation Safety)

o DG Move has indicated that 1 and 2 above should work closely together on ‘impact of

emerging business models’, ‘employment practices’, ‘new hazards that are introduced by

different employment models’. DG Move refers to the next step of an ‘industry working

group’, with the task of developing a methodology ‘to capture those new hazards within

an airline’s safety management system (SMS)’. The terms of reference for this working

group are to be published by EASA, after consultation with advisory bodies (NAAs and

industry), with final recommendations expected for March 2017.

1 ‘on common rules for the operation of air services in the Community’

28

o As part of its focus on the social dimension of the aviation market, DG Move has also

established a market observatory, monitoring the impact of industry developments on

employment levels and conditions.

In ‘An Aviation Strategy for Europe’ (2015), the European Commission indicated a requirement for

a better understanding of new trends in business and employment models, including what are

termed ‘atypical forms of employment’. The Commission emphasised the importance of ensuring

‘fair working conditions in the sector’. The Commission stated that particular focus was required

re ‘mobile workers who have their operational base ... located outside the territory where the

airline is licensed’. The Commission stated that it intended to clarify ‘the applicable labour law and

the competent court in charge of disputes’ through a practice guide, and will also consider, after

evaluation, whether ‘interpretive guidelines or regulatory changes for the aviation sector are

necessary’.

o The practice guide in question has now been produced. It is not specific to aviation, but

covers employer/employee disputes in general.

o The TRAN2 committee of the European Parliament is producing an own-initiative report

on the Aviation Strategy.

o The EMP3 committee has drafted a number of points for submission to the TRAN process,

including (not exhaustive):

‘Insists that direct employment must remain the usual form of employment in

aviation in order to ensure safety’;

‘Calls for a clarification of the ‘home base’ criterion in order to ensure that it

determines applicable social, employment and taxation legislation for all aircraft

operations of carriers holding an EU Air Operator Certificate (AOC)’.

Risk Any legislative proposals in this area should be reviewed to ensure that undue impediments are not introduced impacting the mobility and flexibility required to support the full range of business models in the aviation sector, which have been enormously productive in the generation of consumer benefit, employment and regional development. One example of an immediate specific risk is the designation of the ‘home base’ (in the narrow technical sense) as determining the national labour laws that should apply. As it stands, the home base concept has no relevance in employment law, rather its applicability relates to meeting operational requirements such as flying and resting time. Home base also determines social security jurisdiction (post EU’s 2012 amendment of the regulation). Matters of employment law are private law, as opposed to public law, and are properly dealt with via the Rome Regulation. A change of this nature would undermine the core principle of the EU’s liberalisation of air transport which has seen the successful completion of the Single Market and the extension of the benefits of competition to the entire continent. Opportunity Irish aviation has made an enormous contribution to consumer benefit, employment and regional development in the European Union. In a growth environment, Irish aviation provides high-quality training, job stability and promotional opportunities for thousands of people across Europe (including regions which struggle to generate employment opportunities), as well as a pre-eminent safety record. The opportunity in this area is to ensure that there are no undue impediments to the range of business models which can maintain and continue to create high-skilled jobs in the aviation sector, while enhancing competitiveness, stimulating investment and generate consumer benefit.


2 Committee on Transport and Tourism

3 Committee on Employment and Social Affairs

29

The Commission has indicated that it will evaluate whether interpretive guidelines and/or regulatory changes are required. The ultimate timeline for these steps is unclear from the Strategy document. The timeline for the European Parliament process responding to the Strategy is the following:

TRAN report presented in Committee – 26 September

Deadline for amendments – 5 October

Vote in Committee – 9 November

Vote in Plenary – December TBC


Advocate that there is in fact no lack of clarity re application of labour law such as would require guidelines or new legislation, but recognising that these matters are to be debated with reference to real-life evidence, existing legislation and case law. Advocate, through the Council, and directly to the European Commission, that the terms of reference for any Commission evaluation of these issues be consulted on with the Member States and the industry before the work is commenced, and ensure that all affected parties have appropriate access to consultative forums and mechanisms throughout (e.g. EESC and Social Dialogue Committee for Civil Aviation). Recommend that the following principles be observed in consideration of these matters: 1. It is important that the emphasis brought to this work is one which values innovation and the contribution to growth, jobs and consumer welfare which innovation delivers. Innovation, of its very nature, tends to be atypical, and there should be no a priori assumption that traditional forms of organising resources are superior or in some sense more fair than newly emerging forms. 2. The utmost caution should be exercised to ensure that we do not allow the social agenda to be used as an alternative means of responding to competitive threat (protectionism) by parties in the industry which are less efficient. Competition has driven enormous benefits within the single market, in generating jobs, income, and regional development, and in promoting consumer welfare and intra-EU mobility at affordable prices for business and leisure purposes. There is a particular risk of erecting barriers to entry and/or restricting innovation and competition and labour supply/switching. 3. The objective of EU policy should be to facilitate rather than to restrict flexibility. With regard to mobile workers whose base of operation is outside the territory where the airline is licensed, this represents an achievement of the single market, of labour mobility. Where such practice is demonstrated to be fully compliant with the employment, social security and taxation requirements, it would be regressive to seek to restrict precisely the sort of labour market flexibility which the single market was intended to achieve. 4. Debate on these issues should be empirically based and should avoid polemical and relatively undefined terms such as 'social dumping' and 'bogus self-employment'.


Canvass position in European Parliament, Council and Commission. Ensure case strongly empirically supported as required.


Approve position presented and request that DTTAS actively represent the policy nationally, through EU institutions and in other relevant fora.

Annex 4:

30


Work Plan May – Dec 2016

22 August 2016

1. By Jun WG meeting: Finalisation and adoption of the Work Programme and Working

Procedures document (draft circulated 17 May).

2. By Aug WG meeting: Preparation and adoption of 1-page position summaries on each of the priorities identified in the Work Programme.

3. By 26 Aug: Submission of Work Programme, Working Procedures and position summaries to NCADF Steering Committee for approval (SC meeting 9 Sep).

4. Sep-Dec 2016: Detailed input to national and international policy-making fora on matters related to the priorities identified in the Work Programme, consistent with position summaries as approved by the SC. Input through the most appropriate mechanism/channel in each case

a. Re national airport charges regulation – DTTAS consultation process

b. Re European airport charges regulation – European Commission regarding its evaluation of airport charges regulation

c. Re Brexit – Irish Brexit policy-making, European Council and Commission, UK Government

d. Re proposed EASA Basic Regulation – Council and European Parliament TRAN committee

e. Re protracted delay in revision of Regulation 261 – Council

31

f. Re ‘An Aviation Strategy for Europe’ (Commission policy document) with particular reference to impact on competitiveness of social agenda - European Parliament TRAN and EMPL committees regarding Parliament own-initiative report

g. Re Commission study on ATC strikes disruption – Commission

h. Re securing appropriate GMBM – EU preparation meetings and bilateral engagements prior to the ICAO negotiations

i. Re prioritisation of target bilateral air transport agreements – DTTAS

j. Re removal of aviation taxation – Consider targeting Council discussion post conclusion of Commission study. Subject to agreement of Department of Finance.

k. Re development of plan for removal of restriction on inward investment from third countries - DTTAS

Documents

National Civil Aviation Development Forum Working Group on … · 2019. 7. 16. · 1 National Civil Aviation Development Forum Working Group on Regulatory Framework Summary of Activities