Original scientific paper
Flying on the Edge of Legalities – Safeguarding Fair Competition in European and International Aviation
Dario Klasić
orcid.org/0000-0002-2858-0225
; Institut fűr Luft- und Weltraumrecht, Rechtswissenschaftliche Fakultät, Universität zu Köln, Cologne, Germany
Abstract
There are no international rules of competition. With less state interference, airlines are increasingly seeking unfair advantages through market-distorting business practices. Hence, fair competition is nowadays becoming a hot, crucial topic. The increasing commercial influence of non-European carriers seems to have caused serious concerns in the European Union. The European Commission sanctions infringement of the rules on state aid by EU airlines regardless whether injury actually occurred. There is a presumption that state aid as such distorts the internal market. Consequently, as a matter of principle, state aid – especially on a massive, disruptive scale – is incompatible with fair competition when it comes to third country airlines operating in the EU market. In addition to government support, there are other factors distorting fair competition and the level playing field in the aviation industry, meaning an urgent solution to the problem is needed. An instrument more appropriate and effective than Regulation (EC) 868/2004 needs to be developed to safeguard fair and open competition in the EU’s external aviation relations. Ultimately, as the aviation industry is becoming increasingly global, we should explore the possibility of creating an international, truly global airline regulatory policy covering competition between airlines and an institution which would regulate global airline competition and create a level playing field for all.
Keywords
fair competition; ‘Middle-Eastern 3’; subsidies; unfair advantage; Regulation (EC) 868/2004
Hrčak ID:
157608
URI
Publication date:
29.4.2016.
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