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The regulator's grip

In Europe IATA estimates mis-regulation by national governments costs the industry $5.9 (zł.19.02) billion annually. According to the Open Skies policy and EU regulations, membership states ceded much of the regulatory prerogatives to Brussels, but some countries are still not complying. France, Greece, Italy and Portugal are the main offenders, having signed bilateral air traffic agreements, thus breaching their competences.

The problem are the so-called 'nationality clauses', which allow individual deals to be made with third party countries. The European Commission is starting infringement proceedings and issuing formal notices, while negotiating an overall agreement with the United States. Individual agreements, the Commission says "hinder freedom of competition" and discriminates EU carriers against each other.

"We need modern rules that will allow us the same freedoms that other global businesses take for granted," says Giovanni Bisignani, CEO of IATA, whose members generate 94 percent of the world's air traffic. Airlines want lower taxes and the burden of additional security measures transferred to state budgets. So far the response is reported to be vague. B.K.

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