EU Aviation Scene: Major Developments December 2008 to July 2009

This article gives an overview of the major developments on the EU aviation scene between 1 December 2008 and 31 July 2009. In particular: - During the period under review, the European Commission ('the Commission') adopted decisions in the Iberia/Vueling/ Clickair, Lufthansa/Sabena, Lufthansa/British Midland and KLM/Martinair merger cases and indicated its intention to clear Lufthansa's acquisition of Austrian Airlines subject to the latest version of the remedy package proposed by the parties. The Commission has continued its investigation into the alliance arrangement between Air Canada, Continental Airlines, Lufthansa and United Airlines, as well as the proposed alliance between American Airlines, British Airways and Iberia and has opened formal proceedings in both cases. - There have been major developments in the State aid field during the period under review. The European Court of First Instance (CFI) annulled the Commission's decision in the Charleroi airport case, while the European Court of Justice (ECJ) adopted a judgment imposing a fine on Greece for continued failure to recover illegal State aid granted to Olympic. The Commission adopted a number of decisions relating to aid granted to airports and opened a formal investigation into the Austrian Government's proposed aid and restructuring plan for Austrian Airlines. - There were also a number of noteworthy regulatory developments during the period under review. The ECJ adopted two judgments dealing with issues relating to the interpretation and application of Regulation 261/2004 on compensation and assistance in the event of denied boarding, cancellation and long delay. In addition, a number of important legislative measures were adopted in the field of aviation security, airport charges and slots. - Finally, with regard to the EU external aviation policy, the EU and Canada concluded an important aviation agreement providing for the staged creation of an open aviation area between the two partners. There were also further developments regarding the negotiation or conclusion of horizontal air services agreements with third countries.