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ARTICLE · 13 JUNE 2019

New EU Rules On Aviation Competition Cleared For Take-Off

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Non-EU air carriers and/or countries could be investigated by the European Commission (EC) under a new EU Regulation aimed at safeguarding competition in air transport

United KingdomStrategy

Non-EU air carriers and/or countries could be investigated by the European Commission (EC) under a new EU Regulation aimed at safeguarding competition in air transport1 (the Regulation). The EC will be able to investigate where it suspects that non-EU air carriers or countries have engaged in practices which stand to injure EU air carriers.

Focus of the Regulation

In effect, the Regulation seeks to provide a mechanism for the EC to extend the EU anti-subsidy (State aid) rules, which prevent EU air carriers from benefiting from market-distorting state support, to non-EU air carriers and countries. While an existing regulation2, in force since 2004, currently seeks to protect EU air carriers against subsidisation and unfair pricing practices from non-EU air carriers, it has proved to be ineffective, with no official complaints ever made or investigations undertaken.

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