Europe of the regions European Regions Airline Association Mike A Ambrose Director General
Europe of the regionsEurope of the regions
European Regions Airline AssociationMike A Ambrose
Director General
European Regions Airline AssociationMike A Ambrose
Director General
ContentsContents
Europe – the reality Intra-European operations – the
benefits Future needs Common interests of airports
and airlines
Europe – the reality Intra-European operations – the
benefits Future needs Common interests of airports
and airlines
EuropeEurope
– the reality– the reality
100 years ago at Kitty Hawke, North Carolina the Wright brothers’ flight initiated two new industries
air transport, and air transport
regulation
100 years ago at Kitty Hawke, North Carolina the Wright brothers’ flight initiated two new industries
air transport, and air transport
regulation
The former is struggling for survival,the latter is flourishing
The former is struggling for survival,the latter is flourishing
… and one day Orville, all this will be regulated …
… and one day Orville, all this will be regulated …
Europe - the realityEurope - the reality
The horsepower of regulation
The Ten Commandments run to 300 words
The American Declaration of Independence to just under 1330 words
The EU Directive on the export of duck eggs runs to over 26,900 words
The horsepower of regulation
The Ten Commandments run to 300 words
The American Declaration of Independence to just under 1330 words
The EU Directive on the export of duck eggs runs to over 26,900 words
Europe - the realityEurope - the reality
The European Commission has failed continuously to fulfil its obligations to undertake impact evaluations of its proposals
There is a need for more effective oversight of regulatory competence and need
The European Commission has failed continuously to fulfil its obligations to undertake impact evaluations of its proposals
There is a need for more effective oversight of regulatory competence and need
Europe - the realityEurope - the reality
There is an urgent need to
convince EC to seek and accept industry’s expert advice
industry’s efforts redirected towards cooperation and guidance, not damage limitation and repair
There is an urgent need to
convince EC to seek and accept industry’s expert advice
industry’s efforts redirected towards cooperation and guidance, not damage limitation and repair
Intra-European
air transport
Intra-European
air transport
- the benefits- the benefits
Europe – the realityEnlarged EU - population distribution
Europe – the realityEnlarged EU - population distribution
Capitals41m
Regions412m 9 out of 10
EU citizens live in the regions
Capitals41m
Regions412m
… a significant justification for the liberalisation of air
transport is to stimulate the social
and economic development of
Europe’s regions…
Preamble to the ‘Third Package’
Europe – the realityEnlarged EU - population distribution
Europe – the realityEnlarged EU - population distribution
Europe - the benefits fromintra-European air transportEurope - the benefits from
intra-European air transport
Air transport contributes around €370bn per annum to the enlarged EU economy, about 4% of Gross Domestic Product
The value and scale of this contribution seem not to be recognised by Europe’s politicians and policy-makers
Air transport contributes around €370bn per annum to the enlarged EU economy, about 4% of Gross Domestic Product
The value and scale of this contribution seem not to be recognised by Europe’s politicians and policy-makers
Europe - the benefits fromintra-European air transportEurope - the benefits from
intra-European air transport
International accessibility for businesses in Europe’s regions
Job creation in the regions (1 airline or airport job creates 5-7 jobs in the local community - Erasmus University Study)
Constraint on population migration to inner cities
International accessibility for businesses in Europe’s regions
Job creation in the regions (1 airline or airport job creates 5-7 jobs in the local community - Erasmus University Study)
Constraint on population migration to inner cities
Europe - the benefits fromintra-European air transportEurope - the benefits from
intra-European air transport
Benefits generated with continuously improving
environmental performance
Benefits generated with continuously improving
environmental performance
Average noise characteristicsAverage noise characteristics
-20
-15
-10
-5
0
5
10
15
20
25
30
1955 1960 1965 1970 1975 1980 1985 1990 1995 2000Year of Manufacture (Build Year)
Ch
apte
r 3
Cu
mu
lati
ve M
arg
in (
EP
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B)
Prop
Jet
Chapter 3
Europe - the benefits fromintra-European air transportEurope - the benefits from
intra-European air transport
Benefits currently threatened by absence of a cohesive EU
transport policy based upon equitable treatment for all modes
poorly researched, unevaluated and unjustified policy and regulatory initiatives
Benefits currently threatened by absence of a cohesive EU
transport policy based upon equitable treatment for all modes
poorly researched, unevaluated and unjustified policy and regulatory initiatives
Common interestsCommon interests
- airports and airlines
- airports and airlines
Common interestsCommon interests
Alleviation of cost burdens and well-founded regulations
Reduction in adverse discrimination
Freedom and capacity to develop
Alleviation of cost burdens and well-founded regulations
Reduction in adverse discrimination
Freedom and capacity to develop
EU regulators should conduct an impact assessment
of any new legislation or
regulation (the European Commission
consistently fails to do so)
EU regulators should conduct an impact assessment
of any new legislation or
regulation (the European Commission
consistently fails to do so)
Well-founded regulationsWell-founded regulations
D I S C R I M I N A T I O NA G A I N S T A I R T R A N S P O R T
UNJUSTIFIEDAND
UNJUST
D I S C R I M I N A T I O NA G A I N S T A I R T R A N S P O R T
UNJUSTIFIEDAND
UNJUST
Reduction in adverse
discrimination against air transport
Reduction in adverse
discrimination against air transport
Reduction in adverse discrimination against air
transport
Reduction in adverse discrimination against air
transportThe study identifies
16 existing legislative measures and policies that currently discriminate against air transport
8 planned measures by the European Commission, currently going through Europe’s legislative process
Reduction in adverse discrimination
- European Commission issues
Reduction in adverse discrimination
- European Commission issues
Discrimination Study challenges
over-regulation failure of EC to apply
principles across modes and other businesses
legislative discrimination consistent and massive
subsidies to other modes
Discrimination Study challenges
over-regulation failure of EC to apply
principles across modes and other businesses
legislative discrimination consistent and massive
subsidies to other modes
D I S C R I M I N A T I O NA G A I N S T A I R T R A N S P O R T
UNJUSTIFIEDAND
UNJUST
D I S C R I M I N A T I O NA G A I N S T A I R T R A N S P O R T
UNJUSTIFIEDAND
UNJUST
EU treaties EC White Paper on
Transport Policy State aid and
subsidies Taxation Environment Infrastructure Passenger rights Safety Anti-terrorist security Insurance
EU treaties EC White Paper on
Transport Policy State aid and
subsidies Taxation Environment Infrastructure Passenger rights Safety Anti-terrorist security Insurance
Rail€32.1bn pa
Other modes€0.1bn pa
Reduction in adverse discrimination
State aid and subsidies – transport 98-00 pa
Reduction in adverse discrimination
State aid and subsidies – transport 98-00 pa
Rail€39.1bn pa
Other modes€0.2bn pa
Reduction in adverse discrimination
State aid and subsidies – transport 2001
Reduction in adverse discrimination
State aid and subsidies – transport 2001
Rail€39.1bn pa
Other modes€0.2bn pa
The EC should ensure
state aid policies
applied to air transport are applied
to other modes
Reduction in adverse discrimination
State aid and subsidies – transport 2001
Reduction in adverse discrimination
State aid and subsidies – transport 2001
Rail€39.1bn pa
46% EU state aid
Other modes€0.2bn pa
The EC should ensure
state aid policies
applied to air transport are applied
to other modes
Reduction in adverse discrimination
State aid and subsidies – transport 2001
Reduction in adverse discrimination
State aid and subsidies – transport 2001
In most EU states electricity (or its source fuel) is not taxed
70% of energy used by rail is electricity
the majority of Europe’s trains therefore rely on untaxed energy
Reduction in adverse discrimination Taxation - Energy
Reduction in adverse discrimination Taxation - Energy
D I S C R I M I N A T I O NA G A I N S T A I R T R A N S P O R T
UNJUSTIFIEDAND
UNJUST
D I S C R I M I N A T I O NA G A I N S T A I R T R A N S P O R T
UNJUSTIFIEDAND
UNJUST
All modes should be subject to equivalent
rules, applied simultaneously
All modes should be subject to equivalent
rules, applied simultaneously
Reduction in adverse discrimination
against air transport
Reduction in adverse discrimination
against air transport
Continued benefits to Europe from air transport are dependent on
access to major hubs manageable user charges well-considered regulations industry confidence to make future
investments
Continued benefits to Europe from air transport are dependent on
access to major hubs manageable user charges well-considered regulations industry confidence to make future
investments
Freedom and capacity to developFreedom and capacity to develop
EC White Paper proposes policies that will further distort competition between air and other modes
growth in road & air traffic must be controlled
limit construction of new airports
rail must be made more competitive
where high-speed rail exists, eliminate air services
EC White Paper proposes policies that will further distort competition between air and other modes
growth in road & air traffic must be controlled
limit construction of new airports
rail must be made more competitive
where high-speed rail exists, eliminate air services
Freedom and capacity to developFreedom and capacity to develop
… We can no longer think of maintaining air links to destinations where there is a competitive high-speed rail alternative…. Today the stated priority is thus to limit the construction of new airports…..
… We can no longer think of maintaining air links to destinations where there is a competitive high-speed rail alternative…. Today the stated priority is thus to limit the construction of new airports…..
Freedom and capacity to developFreedom and capacity to develop
The EC should end discriminatory policies that give preference to subsidised development of rail infrastructure over unsubsidised development of air transport infrastructure
The EC should end discriminatory policies that give preference to subsidised development of rail infrastructure over unsubsidised development of air transport infrastructure
Freedom and capacity to developFreedom and capacity to develop
Airports’ and airlines’ interests now coincide more than at any time in air transport’s history
We have every incentive to work together
Airports’ and airlines’ interests now coincide more than at any time in air transport’s history
We have every incentive to work together
Freedom and capacity to developFreedom and capacity to develop
With two miles of road or railway, you can go
2 miles
With two miles of road or railway, you can go
2 miles
With two miles of runway, you can go
ANYWHERE !!!!
With two miles of runway, you can go
ANYWHERE !!!!