Four European states are facing legal action from the European Commission over their bilateral air service agreements with Russia, partly because they include controversial provisions for Siberian overflights.
The Commission says the bilaterals with the four states - Germany, France, Austria and Finland - include specific provisions on paying Russian flag-carrier Aeroflot for the right to overfly Siberian territory.
This enforced payment to Aeroflot for Siberian overflights has long been a source of controversy. The Commission estimates that European Union carriers paid $420 million in charges, mostly to Aeroflot, in 2008.
"The Commission is concerned that such provisions may be in breach of European Union anti-trust rules and could lead to competition distortions to the disadvantage of both EU airlines and consumers," says the Commission.
But the Commission also says that the bilaterals with Russia do not recognise equal application to all European Union airlines. Bilateral agreements with non-EU countries must contain a designation clause explicitly stating that terms cover all EU carriers equally, not simply those of the EU state participating in the bilateral.
"This can create serious practical problems," the Commission says. "For example, if an airline is taken over by an airline from another member state it stands to lose all its traffic route rights."
The Commission says it is "actively assessing" the Russian bilaterals of 23 other EU states to check compliance with European law.
"Russia is one of the few countries in the world that fails to recognise that all EU carriers must be treated equally," it states, adding that air transport agreements must reflect EU regulations.
"Otherwise some EU airlines can be treated less favourably than their direct competitors or face paying unreasonable additional charges which can get passed on to consumers in higher air fares," the Commission adds.
Representatives of Germany, France, Austria and Finland have been sent formal requests for information under EU infringement procedures and will have two months to respond.
Source: Air Transport Intelligence news
