PURPOSE: to conclude, on behalf of the European Union, the Agreement on the creation of a Common Aviation Area between the Republic of Armenia, of the one part, and the European Union and its Member States, of the other part.

ROLE OF THE EUROPEAN PARLIAMENT: Council may adopt the act only if Parliament has given its consent to the act.

BACKGROUND: as authorised by the Council on 7 December 2015, the Commission negotiated the Agreement on the establishment of a Common Aviation Area between Armenia, on the one hand, and the European Union and its Member States, on the other.

The negotiating directives set out the general objective of negotiating a comprehensive air transport agreement with the aim of gradually and reciprocally opening market access and ensuring regulatory convergence and effective implementation of Union requirements and standards.

In accordance with the negotiating directives, a draft agreement with Armenia was initialled by both parties on 24 November 2017.

The conclusion of a Common Aviation Area Agreement with Armenia is an important element in the development of the Union external aviation policy and a crucial component of the Union neighbourhood policy and the creation of a wider European Common Aviation Area.

CONTENT: the Commission proposes that the Council decide to approve, on behalf of the Union, the Agreement on the creation of a Common Aviation Area between the Republic of Armenia, of the one part, and the European Union and its Member States, of the other part.

The aim of the agreement is to create a Common Aviation Area between the Parties based on gradual market opening, liberalisation of ownership and control of air carriers, fair and equal conditions of competition, non-discrimination and common rules, in particular in the fields of safety, security, air traffic management, social and environmental aspects.

The agreement aims in particular at:

- gradual market opening in terms of access to routes and capacity on a reciprocal basis;

- ensuring regulatory convergence and effective compliance by Armenia with EU aviation related legislation; and

- non-discrimination and level playing field for economic operators.

The agreement provides for the simultaneous extension of its terms to all 27 Member States, applying the same rules without discrimination and in the interest of all EU air carriers, regardless of their nationality. These carriers will be able to operate freely from any point in the European Union to any point in Armenia, which is currently not the case.

The agreement guarantees all EU air carriers access to commercial opportunities, such as ground handling, code-sharing and intermodality, and the possibility to price freely.

A Joint Committee will be established to discuss matters relating to the implementation of the agreement.