Air transport: rules of competition to undertakings on the lines Community - Third countries

OBJECTIVE: the application of Community competition rules to air transport between the Community and third countries. SUBSTANCE: the Commission proposes the adoption of two regulations (see also CNS97138) which will allow Community competition rules to be applied to air transport on routes between the Community and third countries. This proposal seeks to amend Regulation 3975/87/EEC on the application of competition rules to air transport undertakings in two ways: - deletion of Article 1(2) which limits the scope to air transport between Community airports. The Commission stresses that Community competition law would apply only if there is an effect on trade between Member States. Such an effect would have to be determined on a case-by-case basis; - addition of an article providing for consultations and, where necessary, negotiations under Council directives in the event of a conflict between Community competition law and the laws, regulations or administrative provisions of third countries or the provisions of air service agreements between Member States and third countries. �