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Azerbaijan and EU plan to create common aviation area

06 September 2011 08:31 (UTC +04:00)

This would imply a gradual opening of markets and also that the country gradually implement the EU’s regulations. "The strategic location at the crossroads of Europe and Asia make Azerbaijan an obvious candidate for a common aviation area agreement with the EU. In January 2011, the Azeri authorities expressed their interest in negotiating a common aviation area agreement with the EU," said the Commission in a communication issued on August 30.

Priority areas would be market opening, freedom of establishment, equal conditions of competition and common rules in the areas of aviation safety, aviation security, air traffic management, social conditions and environmental protection.

According to the Commission, demand for air travel between the EU and Azerbaijan exceeds supply. The result is a market in which fares are held artificially high and leisure travel is suppressed. An increase in competition could lead to a drop in fares and could thus benefit passengers. An impact study carried out by the Commission estimates the economic benefit of such a common aviation area agreement at around â‚¬44.2 million during the first five years after liberalization (mainly due to increased connectivity, lower air fares, increased air travel and associated economic activity). An EU-Azerbaijan agreement would create new market opportunities for air carriers in the EU.

The Commission notes that some EU air carriers have expressed interest in operating additional services or starting new services to Baku, if the present capacity restrictions would be lifted. Such an agreement could also facilitate the integration of Azeri carriers into existing alliances of EU air carriers.