ABSTRACT
The regulation of European airlines is now relatively straightforward, at least in respect of intra-EC routes. Safety regulation continues much as it always has, but following the adoption of the Third Stage Package (Third Package) of European Council Regulations, the economic regulation applying to EC routes is arguably the most liberal in the world. From the beginning of this year (1984), airlines established in the EC and owned and controlled by EC nationals, require only a single Operating Licence, granted by a competent national authority, to fly on most domestic and European routes. Full access to member-states’ domestic markets will be permitted by 1997. In addition, the distinction between scheduled and charter flights has been removed, and EC airlines are now free to charge whatever fares they wish on intra-EC flights without any need for prior approval (although there are regulatory safeguards regarding excessively high fares and fares which are predatory).
