European Commission launched (14-Mar-2011) infringement procedures against several member states and is actively assessing the compliance with EU law of the remaining member states' bilateral aviation agreements with Russia. The Commission is concerned that these agreements may hinder competition, breach EU rules on freedom of establishment and provide a basis for Siberian overflight charges which may be illegal. EU airlines are also obliged to pay Siberian overflight charges for routes to many Asian destinations. With respect to Siberian overflight charges, EU carriers are de facto forced into agreements with their competitor, Aeroflot. In 2008 alone, EU carriers paid around USD420 million, most of it directly to Aeroflot. [more]
EU reviewing infringements concerning bilateral aviation agreements with Russia
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Mongolia’s international market has not grown in the past four years due, in part, to protective policies. In the latest examples of protectionism, Mongolia has refused to allow Kazakhstan’s Air Astana to launch flights and has not approved more capacity for Turkish Airways that is needed for new nonstop flights from Istanbul.
The Mongolian market has huge potential, and increased tourism would have an overall economic benefit far greater than the negative impact on the government owned MIAT Mongolian Airlines from increased competition. With the new airport about to open, it is even more crucial for Mongolia to liberalise – not only by opening up to all interested foreign airlines, but also by ending MIAT’s monopoly on ground handling services and making sure the airport’s charges are low enough to support new flights.
Ukraine: traffic recovery prompts Ryanair to join Wizz Air in LCC growth. Ukraine Int'l also expands
Two announcements by leading LCCs in quick succession may mark a significant development in Ukraine's aviation market. One came on 13-Mar-2016 from Wizz Air, the largest low cost airline in Eastern/Central Europe; the other on 15-Mar-2016 from Ryanair, the largest LCC (and largest airline) in all Europe.
Both expect opportunity in Ukraine's very low levels of air travel and low LCC seat share. Wizz Air, already Ukraine's leading low cost airline, will add four more new routes in summer 2017, to the four previously announced. Ryanair will enter Ukraine with 11 routes, adding competitive tension to the emerging low fares market there. The battle between the two for supremacy in Eastern/Central Europe opens up a new front.
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