EU must push for integrated European aviation policy

For European airlines 'overburdened' by regulations, an integrated aviation policy would help the EU realise its 'huge potential', writes Jacek Krawczyk.

By Jacek Krawczyk

30 Jun 2014

Together with other branches of the economy, European aviation is getting back on track. However, looking closer, the picture remains gloomy: EU aviation is not keeping up in the global race.

One of the remedies could be an integrated European aviation policy, which would provide best possible scenarios for the sector's growth. The participants of the conference organised by the European economic and social committee (EESC) tried to define what such a policy should look like. The discussion showed clearly that a long and bumpy road is still ahead of us.

All participants agreed that an integrated European approach was needed, but immediately afterwards everybody proposed solutions tailored only to their needs. We must look at the aviation value chain as a whole. Connections and dependencies between airlines, airports, air navigation service providers and airplane and infrastructure manufacturers are so close that it is only by pursuing a holistic approach that we can respond to the challenges ahead. As long as EU aviation follows a 'sliced salami' approach there will be no meaningful improvement.

An example of the failure of the holistic approach is the latest modification of guidelines for state aid in aviation. This modification was supposed to restore a level playing field for airports and airlines in Europe. In practice, under pressure from a few MEPs and regional authorities, a number of exemptions were created. As the EESC stated in its opinion on state aid to airports and airlines, this undermines the main purpose of the new guidelines.

"Too much room is left for political 'mist' on the subject [of state aid for airports and airlines] and not enough hard data is provided to propose reliable solutions"

The EESC will repeat its appeal to the European commission to launch a study that would present the current state of public aid. Too much room is left for political 'mist' on the subject and not enough hard data is provided to propose reliable solutions.

Talking about an integrated European aviation policy, I would underline three main aspects: connectivity, sustainability and competitiveness. Connectivity in Europe is a citizen's right, it makes it easier to do business and improves mobility. Steps have to be taken to enable maximum connectivity to be achieved with a view to maintaining economic efficiency.

Both network carriers and low cost carriers can co-exist and compete only when the regulatory environment provides a level playing field. The current economic conditions of many European network airlines, together with the amount of legal complaints to DG competition against both types of airlines, clearly demonstrate that, for the moment, this is not the case.

Competing on the global market with carriers from Asia and the Middle East is more and more difficult for European companies, even though most of them have taken steps to restructure and improve cost effectiveness. This will remain difficult or even impossible as long as European companies are overburdened or discriminated by regulations that do not apply to other players (such as the emissions trading system).

"An integrated European aviation policy is within our reach"

We need a vision for EU aviation in the world; forced consolidation of EU airlines type of strategy is just not enough. There is a huge potential for integration due to technology. Full implementation of the single European sky (SES) together with the introduction of innovative Sesar (technology pillar of SES) solutions would make it possible to achieve significant reductions in delays, fuel consumption, costs and environmental impact. This must be, in my view, a key priority for the next European commission. We must integrate to make aviation economically sustainable – 'the race for subsidies' approach must not prevail.

An integrated European aviation policy is within our reach. The culture of dialogue between stakeholders and policymakers has improved significantly in the last few years. No one can deal alone with challenges the sector is facing. The value chain approach will, in the long-term, provide the environment for European aviation to grow. Defending the interests of particular parts of the value chain against those of others will lead nowhere.

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