Commission launches infringement proceedings against Malta on groundhandling at MIA

The European rules on the refuelling of aircraft are not being complied with at Malta International Airport, the Commissino said after it sent a reasoned opinion to the Maltese government, the second stage in the EU's infringement proceedings. If there is no satisfactory reply within two months, the Commission may refer the matter to the European Court of Justice.

Under Council Directive 96/67/EC, the European Union opened up the groundhandling services market at airports to competition, which includes the checking-in of passengers, baggage handling and the refuelling of aircraft.

However, the Directive allows Member States to limit the opening-up of the market to a maximum number of suppliers for four categories of groundhandling. These categories are: ramp handling (marshalling aircraft, loading and unloading food and beverages, etc.), baggage handling, freight and mail handling and fuel and oil handling.

The Commission said the rules transposing this directive in Malta provide for a limitation on the opening-up of the market to two suppliers, as well as the launching of a European call for tender for their selection. Moreover, the conditions under which the two suppliers were selected are not fully in conformity with the Directive.

In addition, the Maltese authorities did not organise an independent verification of the separation of accounts even though one of the two suppliers of fuel handling services is also the manager of the storage and fuel supply facilities. “The first consequence of the incorrect application of the Directive is the lack of effective competition for the supply of fuel at the airport of Luqa-Malta, which results in possible additional costs to airline companies which may then be passed on to passengers.”

In a statement, the government said that back in April 2003, the Malta International Airport launched an EU-wide tender for the provision of groundhandling services at Malta International Airport (MIA).

“The delay in having two suppliers for groundhandling provision of fuel and oil airside, has been caused by a dispute between the two successful bidders due to a failure to come to an agreement on the fee to be charged by the incumbent user for the use of the storage and fuel supply facilities, which are also managed by the incumbent user. This issue is currently the subject of a legal dispute between the two selected bidders.

“While Malta will react to the Reasoned Opinion within the timeframe established by the Commission, Malta confirms that at no point has it prevented an airport user from having, in respect of each category of groundhandling service subject to restriction, an effective choice between at least two suppliers of groundhandling services.”