WRITTEN QUESTION E-3618/02

by Erik Meijer (GUE/NGL) to the Commission

(16 December 2002)

Subject: Disruption of environmental policy by rock-bottom short-hop air fares within the EU by a non-European airline

1. Is the Commission aware that VARIG Brazilian Airlines has been using travel agencies and the Internet to promote flights between Schiphol and Charles de Gaulle airports at a one-way fare of EUR 19 without restrictions and including an in-flight drink and snack?

2. Is VARIG entitled, on the strength of the fact that a 281-seater Boeing 777 is flown on a daily scheduled flight from Sao Paulo via Paris to Amsterdam, automatically to assume the right to promote special offers within the EU at dumping-level fares 75 % lower than those charged by other airlines and lower even than the frequently travelled high-speed rail link on the same route?

3. What impact are such dumping fares having on the viability of the efforts advocated in the Commission's communication on air transport and the environment(1), and also laid down in its White Paper, to limit pressures on airports and air space by establishing and maintaining a European high-speed train network on medium-distance routes?

4. Does the Commission consider the state of affairs referred to in question 1 as exemplifying the normal functioning of the market mechanism, the principle of freedom to provide transport services and complementary elements in the transport chain, as understood in its answer to my Written Question E-3387/00(2), or does it take the view that the limits of the acceptable have now been exceeded?

5. What options are open to the Commission for calling a halt to such disruptive practices? Will it make use of such options?

6. If no such options are as yet available, will the Commission introduce arrangements enabling corrective action to be taken?

(1) COM(1999) 640 final.

(2) OJ C 174 E, 19.6.2001, p. 45.

Answer given by Ms de Palacio on behalf of the Commission

(17 February 2003)

The Commission had not been aware of the commercial practices of the company in question on the Paris-Amsterdam route until the Honourable Member raised the issue.

Varig's right to fly on the intra-Community route concerned stems from the bilateral agreements concluded between Brazil on the one part, and France and the Netherlands on the other. These agreements concluded by individual Member States might contain provisions which are incompatible with Community law. The Commission has no direct powers concerning the fares charged by non-Community companies on the basis of bilateral agreements. The Commission is working towards bringing these agreements into line with Community law. Its work has been strengthened since the Court of Justice, in its so-called Open Sky(1) judgments of 5 November 2002, included intra-Community fares and rates among the specific areas where the Community has exclusive competence(2). The Commission will make all the necessary proposals to ensure that a new generation of agreements are signed at Community level which ensure full compatibility with the Community framework, in particular by asking the Council to adopt a negotiating mandate.

Given the limited scope of this type of intra-Community operation, the communication entitled Transport and the environment(3) does not explicitly cover the environmental impact of non-Community airlines exercising intra-Union traffic rights. However, the acquis communautaire on environmental requirements in the field of air transport, and proposed measures regarding the promotion of intermodal operations, also cover companies from third countries.

The Commission will continue to work for progress on harmonising charging and taxation principles across transport modes as outlined in the recent White Paper entitled European transport policy for 2010: time to decide(4). In this regard, it recalls its 1997 proposal for a Council Directive restructuring the Community framework for the taxation of energy products(5) which is pending before the Council of Ministers.

Economic regulations in the air transport market, as explained by the Commission in its answer to Written Question E-3387/00(6), are accompanied by a series of other obligations on operators aimed at increasing security, safety and air traffic control and improving the environmental impact. The Commission will ensure that the acquis communautaire in this matter is further developed based on the general approach to transport policy as presented recently in the White Paper European transport policy for 2010: time to decide(7).

(1) Cases C-466/98, C-467/98, C-468/98, C-469/98, C-471/98, C-472/98, C-475/98 and C-476/98, Commission v. the United Kingdom, Denmark, Sweden, Finland, Belgium, Luxembourg, Austria and Germany.

(2) Commission communication on the consequences of the Court judgements of 5 November 2002 for European air transport policy, COM(2002) 649.

(3) COM(1999) 640 final.

(4) COM(2001) 370 final.

(5) OJ C 139, 6.5.1997.

(6) OJ C 174, 19.6.2001.

(7) COM(2001) 370 final.