Fair competition in air transport
Challenge
The liberalization of the aviation market has created business opportunities for European companies
operating within the EU and fierce competition among airlines to reduce operating costs. This has resulted
in the emergence of new business and employment models.
While new forms of company organization, recruitment practices and terms of employment appear
legitimate and in compliance with current EU regulations, there are examples of EU airlines employing
unfair business practices exploiting unintentional differences in the implementation, application and
administration by Member States of Union regulations. These practices can have a negative effect on fair
competition between the airline companies, social and labour rights, wages, and overall employment
standards within the aviation sector.
Proposal
Steps must be taken at EU-level to secure a level playing field for companies and to ensure acceptable
working conditions for people employed in the European aviation sector. Airlines should compete on
innovation, ualit and p i e athe than on the asis of ule shopping and the e ploitation of loopholes.
Legal certainty must be clearly articulated through provisions that ensure uniform interpretation and
enforcement of the EU regulations on employers and employees in the aviation sector. It should be clear to
employees in which EU Member State they are entitled to inter alia social security, which should moreover
not be subject to frequent changes. There should be a clear and unambiguous definition of the concept of
home base in the sense of employees belonging to one home base only. Furthermore, the working
environment on board aircrafts in the EU should be made subject to uniform, standardized rules and
supervision. Consequently, all aircraft in the EU should be subject to an oversight of the working
environment on board the aircraft.
A way to address these issues could be as amendments to Regulation (EC) No 1008/2008 of the European
Parliament and the Council of 24 September 2008 on common rules for the operation of air services in the
Community.
Background
Air transport regulations have been harmonised within the EU, guaranteeing that all operators, wherever
they are located in the EU, have the same access to the air transport market. However, social protection
and labour law remain primarily a responsibility of the Member States. This means that while all aviation
staff benefit from the protection offered by EU law they may enjoy different rights and levels of protection
depending on the national law that applies to them. This situation can be particularly challenging for
aircrew due to the cross border nature of their jobs.
In March 2019, The European Commission published a report setting out a number of actions to further
strengthen the social agenda in air transport. The report highlights the main opportunities and challenges
faced by aircrews in Europe. It aims to improve legal certainty for aircrews by providing clarifications on
their protection under EU law. Maintaining and promoting high social standards is also a top priority for the
EU's Aviation Strategy and the European Pillar of Social Rights, adopted in 2017, which aims to ensure that
existing social standards are fit for purpose in the 21st century labour market.