REGIONAL COOPERATION AND ECONOMIC INTEGRATION

PART IV:
2012), and 9% lower in the year 2016. Air freight volumes are also expected to shrink in
both 2008 and 2009. However, a more rapid recovery in line with world trade is anticipated
with a return to 6%+ growth by 2010. (www.iata.org/economics).
Financially, the world’s airlines saw a huge recession over 2008, based on substantial
growth in fuel prices (+36%) which turned the net profit for the year 2007 (12.9 billion
USD) in 8.5 billion USD of loss with real option to reach 16-17 billion USD for the year
2008. (Pearce 2009: 2,4).
In different scenarios for airline alliancing and mergers most likely scenario emphasizes
elements of slowly lessening regulation, more joint venture and niche carriers, steady
growth of demand, national identity guarded and gradually less government interference.
(Kleymann, B. and Seristö, H. 2004:195). Consequently, it can be concluded that the
Southeast European countries have real necessity and opportunity of positioning for
the PSO implementation, although the strategy of expansion towards this region in air
transportation is already evident in presence of solid air carriers of Central Europe, like
Austria Airlines, Malev, CSA, AlItalia.
5.
PSO model in the region
European Union Council of Ministers in 2004 authorized the European Commission to start
negotiations with eight southeast European partners (Albania, Bosnia and Herzegovina,
Bulgaria, Croatia, the former Yugoslav Republic of Macedonia, Romania, Serbia and
Montenegro and the U.N. Mission in Kosovo) on a European ECAA 2 agreement. The
objective was to integrate the EU’s neighbors in the Southeast Europe into the EU’s internal
aviation market, with open market access and full application of the EC 3 aviation law.
The negotiations opened in March 2005 with a multilateral high-level meeting, at which
all negotiating parties expressed support for reaching an ECAA agreement as quickly as
possible. In order to give the ECAA partners time to prepare for the full application of EC
aviation law, the EU developed a country-specific gradual approach: Once ECAA partners
have fully implemented EC aviation law the ECAA airlines will have open access to the
EU market. The transitional arrangements were negotiated in October and November 2005
with each ECAA partner individually. After only nine months of negotiations, the text of
the ECAA agreement was agreed upon by all parties in December 2005.
The outcome of these negotiations constitutes significant and valuable progress. The level of
regulatory convergence is unprecedented, as all partners have agreed to align their national
aviation legislation to the complete aviation acquis of the community. Harmonized rules
in Europe will create a common, free and safe air transport market, which can be a driving
force for other sectors and contribute to the development of the whole region, benefiting
consumers and industry alike. This is major step forward where air transport will play a key
role in creating impetus for the political and economic integration of Europe.
2 Common Aviation Area
3 European Commission
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