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Europe of the regions European Regions Airline Association Mike A Ambrose Director General
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Page 1: Ambrose

Europe of the regionsEurope of the regions

European Regions Airline AssociationMike A Ambrose

Director General

European Regions Airline AssociationMike A Ambrose

Director General

Page 2: Ambrose

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

Page 3: Ambrose

EuropeEurope

– the reality– the reality

Page 4: Ambrose

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

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… and one day Orville, all this will be regulated …

… and one day Orville, all this will be regulated …

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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

Page 7: Ambrose

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

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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

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Intra-European

air transport

Intra-European

air transport

- the benefits- the benefits

Page 10: Ambrose

Europe – the realityEnlarged EU - population distribution

Europe – the realityEnlarged EU - population distribution

Capitals41m

Regions412m 9 out of 10

EU citizens live in the regions

Page 11: Ambrose

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

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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

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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

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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

Page 15: Ambrose

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

Nd

B)

Prop

Jet

Chapter 3

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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

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Common interestsCommon interests

- airports and airlines

- airports and airlines

Page 18: Ambrose

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

Page 19: Ambrose

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

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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

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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

Page 22: Ambrose

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

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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

Page 24: Ambrose

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

Page 25: Ambrose

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

Page 26: Ambrose

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

Page 27: Ambrose

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

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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

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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

Page 30: Ambrose

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

Page 31: Ambrose

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

Page 32: Ambrose

… 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

Page 33: Ambrose

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

Page 34: Ambrose

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

Page 35: Ambrose

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 !!!!