EU/USA, Iceland and Norway Agreement: Time Limitations on Arrangements for the Provision of Aircraft with Crew

The European Parliament adopted by 654 votes to 30, with 12 abstentions, a legislative resolution on the draft Council decision on the conclusion, on behalf of the European Union, of the Agreement with Respect to Time Limitations on Arrangements for the Provision of Aircraft with Crew between the European Union, the United States of America, Iceland, and the Kingdom of Norway.

Following the recommendation of the Committee on Transport and Tourism, the European Parliament gave its consent to the conclusion of the agreement.

On 25 and 30 April 2007, the European Union signed an overall aviation agreement with the United States, which was amended by a protocol signed on 24 June 2010 (the US-EU ATA). The US-EU ATA provides, inter alia, for an open wet lease regime between the parties.

In parallel with its negotiations on the US-EU ATA, the EU has also revised its internal aviation market rules, including on wet-leasing. In 2008, the EU approved a Regulation which provides for the introduction of a time limitation for wet leasing of third country registered aircraft, a condition which did not exist in this form in the previous regulation at the time of the signature of the US-EU ATA.

In order to clarify and settle the situation with the US, the Commission was authorised to negotiate an additional agreement on “the time limitations on arrangements for the provision of aircraft with crew” (wet lease agreement) with the US, Norway and Iceland. This agreement was signed on 27 August 2019 and was drawn up in the official languages of the Union (to be authenticated by an exchange of letters between the parties).

The aim of such agreement is to confirm the establishment of clear and non-restrictive wet lease arrangements between the EU and the US by providing more precision to associated provisions of the US-EU ATA. In doing so, the parties seek to maximise benefits for consumers, airlines, labour, and communities on both sides of the Atlantic so as better to reflect the realities of a global aviation industry, and the strengthening of the transatlantic air transportation system.

The agreement clarifies the wet lease rules of the US-EU ATA and states that no party shall impose time limitations on the operation of any wet lease, which is to be considered any arrangement between two airlines for the provision of aircraft with crew for international air transportation. For any potential dispute, the wet lease agreement is linked to the dispute resolution mechanisms established by the US-EU ATA.