PURPOSE: to approve the Agreement between the EC and Israel on certain aspects of air services.

LEGISLATIVE ACT: Council Decision 2009/515/EC on the conclusion of the Agreement between the European Community and the State of Israel on certain aspects of air services.

CONTENT: following the judgements of the Court of Justice in the “Open Skies” cases, in June 2003 the Council granted the Commission a mandate to open negotiations with third countries on the replacement of certain provisions in existing agreements with a Community agreement (the “horizontal mandate”). The objectives of such agreements are to give all EU air carriers non-discriminatory access to routes between the Community and third countries, and to bring bilateral air service agreements between Member States and third countries in line with Community law.

With this Decision, the Agreement between the European Community and the State of Israel on certain aspects of air services is hereby approved on behalf of the Community.

In summary, the Agreement:

· replaces the traditional designation clauses with a Community designation clause. This permits all Community carriers to benefit from the right of establishment;

· deals with the taxation of aviation fuel, a matter which has been harmonised by Council Directive 2003/96/EC restructuring the Community framework for the taxation of energy products and electricity;

· resolves conflicts between the existing bilateral air services agreements and Council Regulation (EC) No 2409/92 on fares and rates for air services which prohibits third country carriers from being price leaders on air services for carriage wholly within the Community;

· brings provisions in bilateral agreements which are clearly anti-competitive (obligatory commercial agreements between airlines) in line with EU competition law.

The European Parliament adopted by 615 votes to 23, with 23 abstention, a legislative resolution approving unamended, under the consultation procedure, the proposal for a Council decision on the conclusion of the Agreement between the European Community and the State of Israel on certain aspects of air services.

The Committee on Transport and Tourism adopted, without amendment, the report drafted by Paolo COSTA (ALDE, IT), according to the simplified procedure - Rule 43(1) of the Rules of Procedure, on the proposal for a Council decision on the conclusion of the Agreement between the European Community and the State of Israel on certain aspects of air services.

PURPOSE: the signature and provisional application of the Agreement between the European Community and the State of Israel on certain aspects of air services.

PROPOSED ACT: Council Decision.

CONTENT: following the judgements of the Court of Justice in the so-called “Open Skies” cases, in June 2003 the Council granted the Commission a mandate to open negotiations with third countries on the replacement of certain provisions in existing agreements with a Community agreement (the “horizontal mandate”). The objectives of such agreements are to give all EU air carriers non-discriminatory access to routes between the Community and third countries, and to bring bilateral air service agreements between Member States and third countries in line with Community law.

In accordance with the mechanisms and directives in the ”horizontal mandate”, the Commission has negotiated an agreement with the State of Israel that replaces certain provisions in the existing bilateral air services agreements between Member States and the State of Israel. Article 2 of the Agreement replaces the traditional designation clauses with a Community designation clause, permitting all Community carriers to benefit from the right of establishment. Articles 4 and 5 of the Agreement address two types of clause concerning matters of Community competence. Article 4 deals with the taxation of aviation fuel, a matter which has been harmonised by Council Directive 2003/96/EC restructuring the Community framework for the taxation of energy products and electricity, and in particular Article 14 (2) thereof. Article 5 (Pricing) resolves conflicts between the existing bilateral air services agreements and Council Regulation No 2409/92 on fares and rates for air services which prohibits third country carriers from being price leaders on air services for carriage wholly within the Community. Article 6 brings provisions in bilateral agreements which are clearly anti-competitive (obligatory commercial agreements between airlines) in line with EU competition law.

PURPOSE: the signature and provisional application of the Agreement between the European Community and the State of Israel on certain aspects of air services.

PROPOSED ACT: Council Decision.

CONTENT: following the judgements of the Court of Justice in the so-called “Open Skies” cases, in June 2003 the Council granted the Commission a mandate to open negotiations with third countries on the replacement of certain provisions in existing agreements with a Community agreement (the “horizontal mandate”). The objectives of such agreements are to give all EU air carriers non-discriminatory access to routes between the Community and third countries, and to bring bilateral air service agreements between Member States and third countries in line with Community law.

In accordance with the mechanisms and directives in the ”horizontal mandate”, the Commission has negotiated an agreement with the State of Israel that replaces certain provisions in the existing bilateral air services agreements between Member States and the State of Israel. Article 2 of the Agreement replaces the traditional designation clauses with a Community designation clause, permitting all Community carriers to benefit from the right of establishment. Articles 4 and 5 of the Agreement address two types of clause concerning matters of Community competence. Article 4 deals with the taxation of aviation fuel, a matter which has been harmonised by Council Directive 2003/96/EC restructuring the Community framework for the taxation of energy products and electricity, and in particular Article 14 (2) thereof. Article 5 (Pricing) resolves conflicts between the existing bilateral air services agreements and Council Regulation No 2409/92 on fares and rates for air services which prohibits third country carriers from being price leaders on air services for carriage wholly within the Community. Article 6 brings provisions in bilateral agreements which are clearly anti-competitive (obligatory commercial agreements between airlines) in line with EU competition law.