Importance of Air Transport Sector in Economic and Social Development of South East Europe

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1 INFORMATION NOTE WORKSHOP Roundtable Discussion Importance of Air Transport Sector in Economic and Social Development of South East Europe Sarajevo, 11 February 2010 Organised and hosted by the Regional Cooperation Council Secretariat (RCC Secretariat) The workshop is intended to assess the present and possible future contribution of air transport services, as an infrastructural connectivity network, and its potential in fostering advanced economic and social development and cooperation in the South East Europe (SEE). It will bring together representatives of the national authorities and relevant organisations of the RCC members from SEE and representatives from aviation industry to discuss the potential of air transport services in the SEE. South East Europe has one of the highest growth rates in air traffic of any region in Europe. Air transport connections to hubs in the EU (VIE, MUC, ZRH MXP, BUD) are generally satisfactory but connections between the individual capitals and major cities of SEE are underdeveloped and represent a barrier for fast and convenient travel it can often take up to 7 hours to travel between capital cities. It would seem that such poor or non-existent connections between capital cities such as Athens, Belgrade, Bucharest, Podgorica, Sarajevo, Skopje, Sofia, Tirana and Zagreb represent a significant loss of business opportunity and also hamper more rapid economic integration with the EU. RCC members from SEE are parties to the European Common Aviation Area Agreement (ECAA) the objective of which is to integrate the EU s neighbors in South East Europe in the EU's internal aviation market consisting of 27 EU Member States as well as Norway and Iceland. The ECAA Agreement was signed on 6 June The eight South East European partners agreed to the full application of the European Community s aviation law (Community acquis). Once ECAA partners fully implement the EC s aviation acquis, ECAA airlines will have open access to the enlarged European single market in aviation. The ECAA agreement will therefore create new market opportunities due to an integrated aviation market of 36 countries and more than 500

2 million people. At the same time, the agreement will lead to equally high standards in term of safety and security across Europe, through the uniform application of rules. The present air transport market involving the EU and the eight South East European partners is today characterised by a number of bilateral agreements between the countries and EU Member States. These bilateral agreements will be replaced in whole or in part by the ECAA Agreement and the remaining parts cannot be in conflict with the air transport policy defined by the ECAA. Because of its specific nature, both from a public and a commercial point of view, it must be underlined that safety has to be a vital element of any air transport policy. The European Union s air transport policy implemented through the ECAA Agreement is a policy for the whole of the air transport sector, composed primarily of air carriers, airports and air traffic control (ATC) services. This policy has been defined by looking first at the needs of the sector itself, and secondly but most importantly, to the needs of the whole society, as in many ways air transport is essential for the fabric of a modern well functioning society, such as for trade and tourism. As such, it presents opportunities and challenges to airlines and other interested parties in the region to take advantage of this liberalized market and improve air connectivity in the SEE region. Workshop on the present and possible future contribution of air transport services, as an infrastructural network, and its potential in fostering advanced economic and social development and cooperation in SEE is intended to consider: What are the reasons of undeveloped air transport market in the region? What are the criteria necessary for improved connections between the capital cities and major cities in SEE? What are the consumers needs for more convenient travel and flexible travel choices? How to create business opportunities for companies supplying goods and services to airlines? How could this contribute to the integration of the countries of SEE into the common market? What are the possible incentives to ensure that intra-regional air transport as an infrastructure network contribute to more advanced economic and social development in SEE? It is expected that the workshop s comprehensive and dynamic discussion regarding the feasibility of and potential for improved air connectivity in the SEE region could result in concrete conclusions to be put on the agenda of the RCC aiming to determine future policy and measures for implementation. Participants would come from transport ministries and aeronautical authorities, chambers of commerce, airlines, airports, business associations and others from the RCC members from SEE

3 Draft Agenda WORKSHOP Roundtable Discussion Importance of Air Transport Sector in Economic and Social Development of South East Europe Thursday, 11 February 2010 Regional Cooperation Council Secretariat Trg Bosne i Hercegovine 1/V Sarajevo Registration & Coffee Welcome and Opening remarks Mr. Hido Biščević, Secretary General, Regional Cooperation Council Mr. Johan Hesse, Head of Section, Delegation of the European Union to Bosnia and Herzegovina on behalf of Troika (EU/EC/EC) Session I Contribution and Possibilities of Air Transport in the Economic and Social Development in South East Europe Regional goals and role of transport links and connectivity in achieving the economic and social development of SEE Ms. Amna Redzepagic, Expert on Infrastructure, Regional Cooperation Council Status of Air Transport Infrastructure and Air Links in the SEE, Obstacles and Challenges for Development Mr. Mirko Tatalovic, Executive Manager, Croatia Airlines Company The European Common Aviation Area (ECAA) Agreement and its History and Future from the European Commission s Perspective

4 Mr. Máté Gergely, European Commission, Directorate General for Energy and Transport, Unit F1: Internal Market, Air Transport Agreements and Multilateral Relations Implementation of the ECAA Agreement - Experience of the member States Ms. Milena Micic, Legal Advisor for International Cooperation, Directorate of Civil Aviation of Bosnia and Herzegovina Mr. Miro Cvijin, ECAA Focal point, Directorate General for Civil Aviation of the Republic of Croatia Mr. Renato Brkanovic, Deputy General Director, Civil Aviation Agency of Montenegro Ms.Veti Georgijevska, Aviation Standards Advisor, Civil Aviation Agency of The Former Yugoslav Republic of Macedonia Mr. Dritan Gjonbalaj, Director General, Civil Aviation Authority of UNMIK/Kosovo under UNSCR 1244/ LUNCH Hosted by the RCC Secretariat Session II Development of Air Connectivity Opportunities and Incentives for Faster Integration of South East Europe Value Chain in Aviation Obstacle for Competitiveness and Faster Development of Air Transport Mr. David Hendersen, Manager Information, Association of the European Airlines (AEA) Implementation of the Public Service Obligation Arrangements French Experience Mrs. Carine Donzel, Deputy Office Manager, Direction of Air Transport, General Directorate of Civil Aviation of France Airports: Evolving business models & social and economic impact Mr. Gérard Borel, General Counsel, Airport Council International Europe (ACI)

5 COFFEE BREAK Discussion and Identification of Options for Improvement of Intra-Regional Air Transport in South East Europe and Creation of Air Services as a Prerequisite for More Advanced Economic and Social Development in the SEE Representatives of the Transport Ministries and aeronautical authorities, chambers of commerce and industry of the RCC members from SEE shall express their views and opinions on: Could the establishment of missing air connections bring added value to economical and social development in the SEE? Would it be valuable to explore and determine the consumers needs for better air mobility and criteria for air services between the capitals and major cities in the SEE? Would it be worth exploring costs and benefits of possible improvement of air connections in the SEE? Could an aviation project be initiated by the RCC Secretariat for further exploration of possibilities for improvement of intra-regional air services in the SEE? Moderator: Amna Redzepagic, RCC Secretariat Conclusions of the Workshop

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