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The Legal Regime of Air Transport in Cyprus

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The Legal Regime of Air Transport in Cyprus The legal regime of air transport in Cyprus Harry Stamelos, Attorney-at-law, Athens Bar, President of the Hellenes and Cypriot Jurists Association, Scientific Collaborator/ Instructor, European University Cyprus Law School. This paper aims to provide an understanding on the legal regime of air transport in Cyprus. In the first part, the basic laws of Cyprus are presented and analysed. There is a brief reference to statistical data regarding the number of passengers and flights to the two major airports of Cyprus, Larnaca and Paphos. In the second part, we examine the decision of the European Commission of 2015 regarding the Cyprus Airways. Cyprus Airways received illegal state aid from the Republic of Cyprus, and without being able to return it to the state in the middle of the financial crisis, it finally ended up its operation after many years of performing air transport. We conclude this paper by explaining the interface between competition policy and air transport policy in Cyprus and in the EU. Useful data regarding airlines and airports are presented in the appendices. EU Accession and the Civil Aviation Re- 1. Cypriot air transport law gime has been published in 2003 (Papatheo- It is clear that Cypriot air transport law has dorou, A., Busuttil, L.). Furthermore, the adopted the entire EU and international law main Law 213(I)/2002 regulates all air instruments[1]. transport matters, including registration of Law 213(I)/2002 as amended by laws of aircrafts, safety rules, training of crew, pow- 2004, 2005, 2006, 2007, 2008, 2011, 2012, ers of the captain, operation of airports, air 2014, 2015 is the main codified law on Civil carriers, rights of passengers. According to Aviation in Cyprus, also implements the EU sections 261(1) and 261(2) of Law legal instruments[2]. 213(I)/2002, the Conventions of Chicago The civil matters of air transport[3] are pro- 1944, Tokyo 1963, Hague 1970, Montreal tected along with the criminal and public is- 1971/ (Protocol) 1988 apply not only to in- sues (Laws 30/72, 31/72, 22(III/2000, ternational but also to domestic flights. 33(III)/2001) in a systematic way in Cyprus. The public body which has the powers to « Cypriot air We may emphasise that Cyprus has adopted apply the aforementioned legal instruments transport law has most international law instruments long be- for domestic and international air transport adopted the entire EU and interna- fore its accession to the European Union is the Department of Civil Aviation of Cy- tional law instru- (2004). A specific case study on Cyprus, the ments» [1] At a more detailed examination, Decree 1953 22(III)/2000 adopts the Brussels Convention of adopts Warsaw Convention of 1929 (air carriage or 1997 amending Eurocontrol Convention, Law air transport), Law 66/70 implements the Hague 33(III)/2001 adopts the Montreal Convention 1973 Convention of 1955 and the Guadalajara Conven- and Protocol 1988 (suppression of unlawful acts tion of 1961 (air carriage), Law 30/72 embodies the against the safety of civil aviation) and Law Hague Convention of 1970 (suppression of unlawful 2(III)/2002 applies the Montreal Convention of seizure of aircraft), Law 31/72 implements the To- 1999 (air carriage or air transport). kyo Convention of 1963 (offences committed on [2] Νamely Directives 80/51, 89/629, 92/14, 93/65, board aircraft), Law 213/88 applies the Chicago 94/56, 96/67, 97/15, 98/20, 1999/28 and Regula- Convention of 1944 and Thirteen Protocols of 1947- tions 3975/87, 2410/92, 3976/87, 2299/89, 295/91, 1984 (civil aviation), Law 97/89 implements the 3922/91, 3925/91, 1823/92, 2407/92, 2408/92, Paris Conventions of 1987 (establishment of tariffs), 2409/92, 3089/93, 95/93, 2176/96, 2027/97, Law 173/89 applies the Guatemala Convention of 323/1999, 925/1999, 1069/1999 1971 and the Protocols of Montreal of 1975 (amend- [3] Decree 1953, Laws 66/70, 213/88, 97/89, 173/89, ing the Warsaw Convention on air transport), Law 2(III)/2002 6 | ἔνθα Μάϊος 2018 Αεροπορικό Δίκαιο prus which organically belongs to the Min- ciation of Airport Users, the Board of Air- istry of Transport, Communications and line Representatives in Cyprus (BARIC), Works. The Minister of Transport, Com- and the education and training of Depart- munications and Works recently issued a ment staff for the efficient discharge of their Ministerial Decree on the Conditions for duties. the Operation of Flights by Unmanned Aer- Furthermore, in 2010 it issued a Circular for ial Vehicles in the Republic of Cyprus (Re- Aircraft registration and certification in Cy- public of Cyprus, Minister of Transport, prus (Republic of Cyprus, Ministry of Com- Communications and Works (2015), The munications and Works, Department of Civil Aviation Decree,) responding to the Civil Aviation (2010) Aeronautical Infor- new need to regulate such activities. mation Services). It describes the procedure for the registration of an aircraft, how the 2. Department of civil aviation of airworthiness certification is governed, and Cyprus other relevant details on the issue of certifi- The Department of Civil Aviation of Cy- cates and the operational and licensing mat- prus belongs to the Ministry of Transport, ters. Communications and Works. It has the ap- The Department of Civil Aviation does not parent power to apply the air transport laws apply in principle the competition laws and in Cyprus. the state aid laws. Such competence falls It is the competent authority (Republic of within the scope of the activities of the Cyprus, Ministry of Transport, Communi- Commission for the Protection of Compe- cations and Works, Department of Civil tition of Cyprus. For instance, in 2012 it is- Aviation (2016) Competencies) for the super- sued a decision in favour of the monopolis- vision of airports, the development of air tic consortium Hermes Airports Ltd and links between Cyprus and other countries, Goldair Handling SA, Servisair UK the provision of air traffic services within Ltd/CLIN Company Ltd, whilst in 2015 the the Nicosia Flight Information Region Commission found that Hermes Airports (FIR) and at airports, the development, de- Ltd infringed competition laws 2008 and sign and supervision of aviation security sys- 2014 (Commission for the Protection of tem (Aviation Security), the provision of Competition of Cyprus (2012), (2015)). communications and air navigation equip- Such decisions will be explained below. ment for the safe and orderly conduct of 3. Cypriot National Procedure for flights within the Cypriot airspace, the im- plementation of EU legislation and the con- limited air traffic rights «The Department tinuous monitoring of developments in the The Cypriot national procedure for the dis- of Civil Aviation does not apply in EU in the area of Civil Aviation, the partic- tribution among eligible Community carri- principle the com- ipation in EU Committees, the coordination ers of limited air traffic rights was published petition laws and and cooperation with the International Civil by the European Commission in 2009 in the the state aid laws» Aviation Organization (ICAO), the Euro- Official Journal of the EU, in accordance pean Civil Aviation Conference (ECAC), with article 6 of Regulation (EC) No the European Organization for the Safety of 847/2004 on the negotiation and imple- Air Navigation (Eurocontrol), the Euro- mentation of air service agreements be- pean Aviation Safety Agency (EASA), the tween Member States and third countries. coordination and cooperation with other The 2008 Civil Aviation Decision defined as government departments such as the De- competent authority the Department of partment of Public Works, Customs, Mete- Civil Aviation of the Ministry of Communi- orology, Fire Service, Police and semi-gov- cations and Works (now Ministry of ernmental organizations such as the Cyprus Transport, Communications and Works). Tourism Organization, the Cyprus Tele- The Department of Civil Aviation is re- communications Authority, the Association sponsible, according to article 2(1) of the of Cyprus Travel Agents (ACTA), the Asso- aforementioned decision, for implementing Μάϊος 2018 ἔνθα | 7 The legal regime of air transport in Cyprus the procedures provided for by the Decision United Arab Emirates, Egypt, Jordan, Qa- for granting access licences. tar, Ukraine, Ethiopia, Iraq and Russia. Dur- Access licence means the granting of access ing these meetings the two parties signed to an interested Community carrier to memoranda designating airlines for the op- scheduled services between Cyprus and a eration of the routes, increasing the fre- third country under the relevant Bilateral quency of flights, the number of airlines op- Air Services Agreements (BASAs). Cyprus erating on the routes and the number of has concluded bilateral agreements with all routes. EU Member States, and also with third According to article 4 of the Decision, ac- countries (such as Egypt, see RIK (2016) cess licences shall be granted and withdrawn Conclusion of significant agreements by Cy- by the Minister pursuant to articles 5 and 6 prus and Egypt). of Regulation (EC) No 847/2004. After Cyprus’ accession to the EU on Any Community carrier with an Aircraft 01/05/2004 and the consequent liberalisa- Operator’s Certificate (AOC) (in the USA it tion of services within the Union, the status is called Air Carrier Operation Certificate[4]) of bilateral agreements with member coun- and valid operating licence issued by a tries, became inactive. Therefore, 22 out of Member State under Regulation (EEC) No 51 existing BASAs signed with member 2407/92 which is established in Cyprus may countries have become inactive while the apply to the competent authority (i.e. the rest concerning bilateral agreements with Department of Civil Aviation) for an access third countries, continue to exist. licence for available commercial rights and According to Regulation (EC) 847/2004 all any new commercial rights granted under existing agreements with third countries the relevant BASA.
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