Office of Public Sector Information

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations make provision to comply with article 5 of Regulation 847/2004 of the European Parliament and Council on the negotiation and implementation of air service agreements between Member States and third countries (OJ No L157, 30.04.2004, p.7). Article 5 of that regulation provides that a Member State shall ensure a distribution of traffic rights among eligible Community air carriers on the basis of a non-discriminatory and transparent procedure. These regulations set out the regime for distributing these traffic rights where scarce capacity exists.

Provision is made for definitions (regulation 2) and consequential amendments to secondary legislation (regulation 3). Regulation 4 places a duty on the Secretary of State to notify the CAA when she considers that scarce capacity will arise within 6 months.

Regulation 5 makes provision for the situation where scarce capacity no longer exists and regulation 6 sets out the scope of regulations 7 to 24. Regulation 7 places a restriction of using an aircraft for the carriage for reward of passengers or cargo on a capacity constrained route, without the qualifying carrier holding a scarce capacity allocation certificate.

Regulation 8 prescribes the function of allocating scarce capacity as a function of the CCA and regulation 9 sets out the duties to which the CAA must have regard when allocating scarce capacity. Regulation 10 contains the requirements which the applicant must fulfil when applying for a scarce capacity allocation certificate and places notification requirements on the CAA.

Provision is made in regulation 11 for revoking or varying a scarce capacity allocation certificate without application being made and regulation 12 makes provision for the making of an objection or representation in respect of an application for a scarce capacity allocation certificate. Regulation 13 states who has a right to be heard at a hearing and regulation 14 deals with preliminary hearings.

Regulation 15 contains notice provisions relating to the hearing which the CAA must comply with and what information they must provide in connection with the hearing. Regulation 16 sets out the procedure which must be followed at the hearing.

Regulation 17 requires the CAA to act with due speed when deciding whether to grant, refuse to grant, revoke or vary a scarce capacity allocation certificate and when notifying the applicant of their decision. Regulation 18 contains notice provisions and regulation 19 sets out requirements on the form of the scarce capacity allocation certificate and how long it shall remain in force.

Regulations 20 to 23 are enforcement provisions. Regulation 20 provides that the regulations will be enforced by the CAA and regulation 21 empowers the CAA to serve a direction detaining an aircraft if it has reason to believe that it will be used in contravention of regulation 7. Regulation 22 makes it an offence to contravene regulation 7, or a direction under regulation 21. Regulation 23 makes provision for offences by a body corporate.

These Regulations are made under powers contained in the Civil Aviation Act 1982, except in their application to regulation 7 (restrictions on the carriage for reward) and the provisions relating to the CAA's functions (regulation 9) and to offences (regulations 22 and 23) where the power is provided by section 2(2) of the European Communities Act 1972.

A full regulatory impact assessment has not been provided for this instrument as no impact on the private or voluntary sectors is foreseen.