EU-Philippines Agreement on Air Services

SUMMARY OF:

Agreement between the EU and the Philippines on certain aspects of air services

Decision (EU) 2018/2003 — signing, on behalf of the EU, and provisional application of the agreement between the EU and the Philippines on certain aspects of air services

Decision (EU) 2019/825 — conclusion on behalf of the EU of the agreement between the EU and the Philippines on certain aspects of air services

WHAT IS THE AIM OF THE AGREEMENT AND THE DECISIONS?

Certain aspects of previous bilateral agreements on air services between individual EU countries and the Philippines were contrary to EU law. The agreement brings them in line with EU law, in particular as regards:

traffic rights
safety
taxation of aviation fuel
competition rules.

The 2016 decision approves the agreement for signing and applies it provisionally on behalf of the EU. The 2019 decision officially concludes the agreement on behalf of the EU.

KEY POINTS

Traffic rights and designation and authorisation of air carriers

The previous bilateral agreements on air services with the Philippines involved Belgium, Czechia, Denmark, Germany, Greece, Luxembourg, Hungary, Austria, Poland and Sweden. The terms of this EU-wide agreement supersede the corresponding rules (individually referenced in the annexes) on the following:

designation of an air carrier by an EU country;
authorisation and permissions granted by the Philippines;
refusal, revocation, suspension or limitation of the authorisations or permissions of the air carrier.

When an EU country designates an air carrier, the Philippines will grant the appropriate authorisations and permissions with minimal delay, provided that:

the carrier is established in the EU country and has an operating licence under Regulation (EC) No 1008/2008 (see summary);
the EU country issuing the licence carries out regulatory controls and the relevant aeronautical authority is clearly identified;
the air carrier is at least majority-owned and effectively controlled by EU countries (or Iceland, Liechtenstein, Norway or Switzerland) or their nationals.

The Philippines may refuse, revoke, suspend or limit the authorisations or permissions if these conditions are not met, or if the air carrier would be circumventing restrictions on the traffic rights imposed by another, already authorised bilateral agreement.

In exercising these rights, the Philippines must not discriminate between air carriers on the grounds of nationality.

Safety

If an EU country designates an air carrier which is regulated by another EU country, safety standards apply equally.

Taxation of aviation fuel

Nothing in the pre-existing bilateral agreements (as listed in the annex) prevents an EU country from imposing, on a non-discriminatory basis, taxes, levies, duties, fees or charges on fuel supplied in its territory for use in an aircraft from a designated Philippines air carrier operating entirely within the EU.

Compatibility with competition rules

Nothing in the pre-existing bilateral agreements (as listed in the annex) requires or favours any agreement, decisions or practices which:

prevent, distort or restrict competition;
reinforce the effects of any such agreement, decision or practice; or
delegate private companies to take measures preventing, distorting or restricting competition.

Any parts of pre-existing agreements that are incompatible with these competition rules will not be applied.

Revision or amendment

The parties may, at any time, revise or amend this agreement by mutual consent.

DATE OF ENTRY INTO FORCE

The agreement has provisionally applied since 20 September 2016. It entered into force on 14 May 2019.

BACKGROUND

The agreement is part of the EU’s External Aviation Policy as a companion to the Aviation Strategy for Europe.

MAIN DOCUMENTS

Agreement between the European Union and the Government of the Republic of the Philippines on certain aspects of air services (OJ L 322, 18.12.2018, pp. 3-11)

Council Decision (EU) 2018/2003 of 20 September 2016 on the signing, on behalf of the Union, and provisional application of the Agreement between the European Union and the Government of the Republic of the Philippines on certain aspects of air services (OJ L 322, 18.12.2018, pp. 1-2)

Council Decision (EU) 2019/825 of 14 May 2019 on the conclusion on behalf of the Union of the Agreement between the European Union and the Government of the Republic of the Philippines on certain aspects of air services (OJ L 137, 23.5.2019, pp. 1-2)