th Published: 20 February 2015 Introduction Following a year of change in the European Union, with a new European Parliament elected in May and a new Commission taking office in November, the beginning of 2015 marks a useful point to take stock of European aviation policy. This briefing aims to provide an update on the current state of play for EU aviation policy. Beginning with an overview of legislative work carried out during the Barroso Commission, the briefing will finish with a brief look at what’s on the horizon for the sector. Stakeholder responses are provided, as well as an overview of the key players. Contents Introduction .......................................................................................................................................... 2 1. Setting the scene ............................................................................................................................... 3 Background ....................................................................................................................................... 3 The Rock ............................................................................................................................................ 3 2. The Juncker Commission ................................................................................................................ 4 First steps........................................................................................................................................... 4 Scanning the horizon ....................................................................................................................... 5 Investing in Europe’s infrastructure ............................................................................................. 5 4. Main players ..................................................................................................................................... 6 European Commission .................................................................................................................... 6 European Parliament ....................................................................................................................... 6 Other Institutions ............................................................................................................................. 7 3. Cleared to land? ............................................................................................................................... 7 Views from the EU bubble .............................................................................................................. 7 Industry views .................................................................................................................................. 7 © DeHavilland Information Services Ltd 2015 2 1. Setting the scene Background The beginning of 2015 saw work continue on a number of legislative files first proposed in the European Commission of José Manual Barroso. Of the ambitious Airports Package that was put forward in 2011, only one legislative proposal has thus far made it onto the books, this being the Regulation on Noise Restrictions at Community Airports. Work continues on the Slots Regulation, while the remaining element of the Package, the Groundhandling Regulation, was withdrawn in the Commission Work Programme for 2015 owing to there being no foreseeable agreement. The decision seems to largely been dictated by industry and centre-left reservations on the effect of further liberalisation of baggage and ground-handling on the sector. Also to receive the axe in the Commission Work Programme for 2015 was the Airports Charges Directive, on which little progress had been made since 2010. Currently the Commission has not indicated whether it intends to table new proposals on the issues of security costs and shared responsibility. The Rock All work, including that on the Airports Package, was and continues to be delayed by the major issue afflicting Implementation of the Single European Sky EU aviation policymaking: the status of Gibraltar Airport in EU aviation legislation. The Slots Regulation Disagreements between Spain and the United Kingdom over the application of EU law to the airport, which stands on Passenger Name Records land partially reclaimed from the Bay of Gibraltar, have delayed negotiations on a number of aviation files including the Air Passenger Rights Regulation Airports Package, the implementation of the Single European Sky (SESII+), and the revision of the Air Passenger Rights Regulation. National Emissions Ceiling Directive The issues extending from the status of Gibraltar Airport have extended from the Barroso Commission into the Commission of Jean-Claude Juncker, with there being no end in sight in terms of a resolution between the two arguing countries. Nonetheless, work continues: in December 2014, the Council of the European Union reached its first reading position on the Implementation of the Single European Sky (SESII+) by crucially setting aside the thorny issue of the airport on the isthmus to be decided at a later date. © DeHavilland Information Services Ltd 2015 3 With the first reading position of the Council on the proposal now known, trilogue discussions have since begun. Nevertheless, agreement and adoption of the proposal as a whole rests on Spain and the UK reaching a settlement, which seems unlikely at the current point in time. The same applies to the Air Passenger Rights Regulation, for which trilogues restart in 2015. While both the Parliament and the Council are keen to make progress on a Regulation which has been vaunted and criticised in equal measure, it too must wait for a solution to the Gibraltar question. In the environmental policy field, the EU ETS continues to only apply to flights within European airspace, with flights to and from non-EU countries benefiting from the decision to ‘stop the clock’ on its application until at least 2016. The timetable in this area is largely dependent upon ongoing negotiations in the ICAO on a global ETS. Due to a variety of factors, some out of the control of the European institutions, the EU approach to aviation has largely stalled, and eyes have turned to the horizon in search of new momentum. 2. The Juncker Commission First steps The new Commission of Jean-Claude Juncker entered office on 1 November 2014, bringing with it a host of new faces and a number of changes to the very structure of the Commission that, at these early stages, seem positive for EU policymaking and for aviation. The headline change was the introduction of ‘project Read more from DeHavilland EU teams’: six Vice-Presidents and the High Representative Juncker Commission chart [see here] will now be responsible for cross-cutting major policy fields, each leading a cluster of Commissioners holding portfolios relevant to their respective field. For aviation, the key teams are ‘Energy Union’, headed by Vice-President Maroš Šefčovič, along with ‘Jobs, Growth, and Competitiveness’, headed by Vice-President Jyrki Katainen. Each team will work on policy important to the aviation sector, such as emissions ceilings and the implementation of the vaunted €315 billion Investment Plan for Europe. Many in the aviation sector were disappointed by the fact that transport did not receive its own dedicated project team, with some feeling that this omission reflects transport and aviation slipping down the policy priorities of the Commission. This was something compounded by the fact that President Juncker had not mentioned transport in his much-publicised ten priorities, launched as part of his campaign during the European elections. While the proof of the effectiveness of the new project teams will only come with time, the change represents a positive step, introducing new horizontal layers into what was previously a very vertical institution. Whereas Commissioners would previously often compete over policies and legacies, the new structure should hopefully result in a more focussed and collective effort from the Commission. © DeHavilland Information Services Ltd 2015 4 Scanning the horizon For the aviation sector, the biggest new development was the proposal of a new Aviation Package in the Commission Work Programme for 2015. The full details of the package are yet to be elaborated on by the Commission, but it is known to contain a forthcoming Communication “identifying challenges and measures for improving the competitiveness of the EU aviation sector” and a proposal for the revision of the EASA Regulation 216/2008. While the revision of the EASA Regulation is something that has been discussed for some time now, less is known about the other elements of the Package. Whatever is put forward by the Commission is likely to reflect a focus on boosting growth and creating jobs, with Director-General of DG MOVE João Aguiar Machado having expressed a desire to work towards “more efficient markets, technological leadership and quality investment in infrastructures” and having described “competitiveness, employment, environment and safety” as core priorities for the aviation sector. Much speculation continues on the actual date of the release of the Package. At the end of 2014, rumours circulated that it would be released in spring 2015 owing to a high level Latvian Presidency conference on aviation which was supposedly to be held in the second quarter of the year. The conference, however, has failed to materialise, and the Commission has yet to reveal its hand.