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Annual report of the CAA

OPEN SKIES JUDGEMENTS

During 2004 the management of international aviation relations continued to be influenced by the Open Skies judgements handed down by the EU Court in November 2002. These verdicts declared that certain provisions contained in traditional air transport agreements were contrary to EU legislation.

A free market has been created for air transport within the EU but aircraft flying outside the EU are usually subject to the conditions of traditional air transport contracts. A fundamental problem with these conditions is that another contracting state may refuse to allow a company to fly if it is not primarily owned and under the supervision of a Finnish national. This does not provide the same opportunities for airlines from other EU states as it does for Finnish owned firms and thus runs counter to EU principles. Finland, in common with other EU states, must do everything it can to change aviation agreements signed with third countries.

A regulation came into force within the EU in July 2004 on how air services agreements should be negotiated and implemented. The purpose of the regulation is to ensure that EU legislation is properly taken into account in such negotiations.