Air Law CO-PUBLICATION WITH ANT N SAKKOULAS PUBLISHERS GREECE At the end of 2002 the third package has been in force for ten years. It was therefore a good moment to review the record in terms of compliance and problems which have been encountered. Competition Law continues to play an important role in the airline sector and topical issues include frequent flyer programmes, the response by traditional airlines to law-cost airlines and arrangements between low-cost airlines and airports. For the last few years state aid to airlines had been a dormant issues, but it is now back in earnest - in connection with the very different responses of the EU and the US to the events of 11 September, the similar but different fates of Sabena and Swissair and the opening of a Commission investigation into Olympic Airways. Passenger rights remains a subject high on the commission's agenda, and its proposal for a regulation on compensation for denied boarding and flight delays and cancellation is exciting strong opposition from airlines. All these subjects were covered in the Association's annual conference for 2002 in Stockholm, and in some cases from a particular Scandinavian point of view. General developments in the Nordic and the Baltic regions have also been discussed, particularly in view of the expected imminent special aviation arrangements between the Baltic states and the EU.

1998 had seen further efforts by the European Commission to reduce the number of natural monopolies in the air transport market. The Council of the EU discussed a directive aimed at regulating airport practices by limiting the level of charges, putting an end to unfair practices and improving transparency for users. At the same time, the Commission set conditions on airline alliances after having carried out investigations into several alliances between EU and US carriers. Another significant issue in 1998 has been the review of conditions of carriage and tickets in consultation with the Commission and with consumer organisations, as well as the proposal for a revision of Regulation No. 895/91 regarding denied boarding compensation. Also in high profile during 1998 has been the proposal for a multilateral treaty between the EU and Eastern European countries regarding the adoption of the air law regime of the EU and EU competition law, which would create a common European aviation area. These various developments have provided the principal topics for discussion at the Association's annual conference for 1998. The Association is grateful to Austrian Airlines Osterreichische Luftverkehrs AG and Bank Austria Aktiengesellschaft for their generous contribution towards the cost of the seminar.

In 1999 liberalization of the air transport market in the EC has continued to have many positive results. As with US deregulation in 1978, it is clearly leading to growing consolidation, principally by way of alliances, and the Commission's ongoing investigation of the transatlantic airline alliances continues to dominate the agenda. For all its positive results, there is some question as to whether liberalization has been achieved at the cost of a deterioration in public service, despite the scope left by the 1992 third package for public service obligations. With the increased competition resulting from liberalization, airlines have come under pressure to cut costs. A prime target has been distribution costs, assisted by developments in technology. This is leading to differences in the relationship between airlines and travel agents and in the role of agents. In its communication on the European airline industry adopted in May 1999, the Commission made it clear that the completion of the single market in air transport with a genuine external dimension, particularly involving the US, is a priority. All these topical issues have been discussed at the Association's annual conference for 1999. The Association is grateful to TAP for its generous assistance with air travel to and from Lisbon.

These papers represent the chief topics of discussion at the European Air Law Association's annual conference for 1997 in Madrid. These include the last remaining qualifications for a fully liberalised EC air transport market, and increasing signs that liberalisation is stimulating structural changes and producing significant benefits for passengers. The text discusses the focus of regulatory attention moving from liberalisation to safety matters, with initiatives in the field of foreign safety oversight, the reformation of Eurocontrol and the creation of a single European aviation safety authority. Also included are EC and US issues regarding transatlantic airline alliances (particularly British Airways/American Airlines) and the Commission's reaction to the Boeing/McDonnell Douglas merger.

At the end of 2002 the third package has been in force for ten years. It as therefore a good moment to review the record in terms of compliance and problems which have been encountered. Competition Law continues to play an important role in the airline sector and topical issues include frequent flyer programs, the response by traditional airlines to law-cost airlines and arrangements between low-cost airlines and airports. For the last few years state aid to airlines had been a dormant issue, but it is now back in earnest - in connection with the very different responses of the EU and the US to the events of 11 September, the similar but different fates of Sabena and Swissair and the opening of a Commission investigation into Olympic Airways. Passenger rights remains a subject high on the commission's agenda, and its proposal for a regulation on compensation for denied boarding and flight delays and cancellation is exciting strong opposition from airlines. All these subjects were covered in the Association's annual conference for 2002 in Stockholm, and in some cases from a particular Scandinavian point of view. General developments in the Nordic and the Baltic regions have also been discussed particularly in view of the expected imminent special aviation arrangements between the Baltic States and the EU.

The continued implementation of the competition rules of the EC Treaty and the provisions of the third package of aviation liberalization measures of 1 January 1993 remain of great importance to the Community's aviation industry. 1994 has seen important activity on access to Community air routes (such as the Orly airport cases), ground handling, state aids and code sharing. These subjects, and others, are examined in the Association's annual conference for 1994, with a round table session on access to air routes in particular. In addition, in view of the conference's location in Amsterdam, there will be a particular Dutch perspective on certain current issues.