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Fri, Apr 25, 2014

IJM Obtains A 'Landmark' ECJ Ruling

European Court Of Justice Rules Requirement For Permission To Flights Into Germany Is Contrary To EU Law

The Austrian aviation company International Jet Management GmbH (IJM) has obtained what it is describing as a "landmark" decision from the European Court of Justice that may have major implications for the free movement of air traffic into Germany.  On 18 March 2014, after a legal dispute lasting a total of five years, the European Court of Justice (ECJ) ruled in favor of IJM.  According to the Court, a series of fines levied on IJM were not justified and therefore the requirement to obtain approval for inward flights into Germany must be lifted for the entire industry.   

Prior to the ruling any operator flying into Germany from a non EU country departure point had to apply to the German authorities (three days in advance of the flight) for permission to make an inbound flight and the carrier also had to furnish evidence that no German competitor would conduct the flight (declaration of non-availability).  This was a requirement that IJM - just as many other European air carriers - was in most cases unable to meet, for mere lack of time.  In the absence of such permission, the authority would introduce fines against the carrier.  Charter flights (commercial flights in non-scheduled traffic) from outside the EU (e.g. Moscow or Ankara) to Germany in particular constitute IJM's daily business.  While the requirements were in place IJM was eventually prompted by the German authorities to pay fines amounting up to 2,200 Euros (approx. $3,040 U.S.) per flight due to the lack of permission for inward bound flights.

"For us, this authorization requirement presented an obvious discrimination against competitors from Germany, prohibiting us from exercising our traffic rights," said IJM MD Robert Schmölzer he explains. "It is unacceptable that the activities of a service provider that is established in another Member State and legally provides similar services there, are prevented or rendered less attractive by such restrictions."

In 2009 IJM lodged its first appeal against the penalties. The subsequent legal dispute lasted for several years.  In the autumn of 2011, the Oberlandesgericht Braunschweig finally referred the case to the European Court of Justice (ECJ) for a preliminary ruling.  The fact that seven governments of EU Member States issued statements during the Court proceedings shows how important this case is on a European level.

IJM says the 18th March 2014 ruling by the European Court of Justice (ECJ) in its favor means that the Court delivered a landmark verdict that will further advance the liberalization of European air traffic.

(Image provided by IJM. Pictured: Robert Schmoelzer MD (L) Felix Feller Accountable Manager & Owner)

FMI: www.ijm.at/en

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