Airline Regulatory: New developments Following “Open Skies” Decisions

The decision of the European Court of Justice (ECJ) in the open skies cases (see BLG Aviation News Issue 11) have given the impetus to two proposals from the European Commission aimed at enhancing the application of European law and the powers of the Commission in the regulation of air transport.

In the open skies cases, which examined the legality of certain of the provisions in bilateral air service agreements (ASA’s) between eight Member States and the US, the ECJ adjudged:

• that the EU has competence in respect of air transport relations with third countries; and
• that the nationality clauses in Member States’ bilaterals infringed EU law as being contrary to those States’ obligation to allow freedom of establishment to individuals or companies of other Member States.