CIVIL AVIATION (AIR FARES) REGULATIONS

CIVIL AVIATION (AIR FARES)

SUBSIDIARY LEGISLATION 499.27

CIVIL AVIATION (AIR FARES) REGULATIONS

1st May, 2004

LEGAL NOTICE 77 of 2004.

The title of these regulations is the Civil Aviation (Air

Fares) Regulations.

In these regulations, unless the context otherwise requires -

"Agreement" means an agreement between groups of States to

which Malta is a party, reciprocally granting to citizens of such

States or their dependants the right to enter, remain and reside in

and leave the country of such States, to move freely within such

States for such period as may be established in the agreement and

to work or establish, provide or receive services therein; and

"Agreement State" shall be construed accordingly;

"air fares" means the prices to be paid by passengers to air

carriers or their agents for the carriage of them and for the carriage

of their baggage on air services and any conditions under which

those prices apply, including remuneration and conditions offered

to agency and other auxiliary services;

"a ir se r v ic e" m ean s a f l ig h t o r s er ies o f f li g h ts car r y i n g

passengers, cargo and, or mail for remuneration and, or hire;

"air transport undertaking" means a person whose business

includes the carriage by air of passengers or cargo for hire or

reward;

"basic fare" means the lowest fully flexible fare, available on a

one way and return basis, which is offered for sale at least to the

same extent as that of any other fully flexible fare offered on the

same air service;

"cargo rates" means the prices to be paid for the carriage of cargo

and the conditions under which those prices apply, including

remuneration and conditions offered to agency and other auxiliary

services;

"charter fares" means the prices to be paid by passengers to

charterers for services which constitute or include their carriage

and the carriage of their baggage on air services and any conditions

under which those prices apply, including remuneration and

conditions offered to agency and other auxiliary services;

"Director" means the Director of Civil Aviation and, to the extent

of the authority given, any person so authorised in that behalf by

the Director;

"seat rates" means the prices to be paid by charterers to air

transport undertakings for the carriage on air services of the

charterer on its customers and their baggage and any conditions

under which those prices apply, including remuneration and

conditions offered to agency and other auxiliary services;

CIVIL AVIATION (AIR FARES)

"standard cargo rates" means the rates which the air transport

undertaking would normally quote including the availability of

normal discounts.

(1) Air transport undertakings of Agreement States

operating scheduled air services to and from Malta shall set air

fares without requiring any approval from the Director.

(2) Air fares set by virtue of subregulation (1) shall not be

required to be filed with the Director more than twenty-four hours,

including a working day, before the air fares come into effect,

except in the case of matching an existent fare for which no more

than prior notification is required.

(3) An air fare may be available for sale and carriage as long as

it is not withdrawn in accordance with regulation 4.

(4) All air transport undertakings of Agreement States

operating in Malta shall inform the general public, on request, of all

air fares and standard cargo rates.

(1) Subject to the provisions of this regulation, the

Director may decide, at any moment

(a) to withdraw a basic fare which, taking into account the

whole fare structure for the route in question and other

relevant factors including the competitive market

situation, is excessively high to the disadvantage of

users in relation to the long term fully-allocated

relevant costs of the air carrier, including a

satisfactory return on capital;

(b) to stop, in a non-discriminatory way, further fare

decreases in a market, whether on a route or a group of

routes, when market forces have led to sustained

downward development of air fares deviating

significantly from ordinary seasonal pricing

movements and resulting in widespread losses among

all air carriers concerned for the air services

concerned, taking into account the long term fully

allocated relevant costs of the air transport

undertakings.

(2) A decision taken pursuant to subregulation (1) shall be

notified with reasons to the relevant authorities of the other

A g r e e m e n t St a t e s i n v o l v e d a s w e l l a s t o t h e a i r t r a n s p o r t

undertakings concerned.

(3) If within fourteen days of the date of receiving notification

no relevant authority of any Agreement State concerned has

notified disagreement stating its reasons, the Director may instruct

the air transport undertaking concerned to withdraw the basic fare

or to abstain from further fare decreases, as appropriate.

(4) In the case of disagreement, the Director may consult the

relevant authority of the Agreement State involved to review the

situation.

CIVIL AVIATION (AIR FARES)

Charter fares and seat and cargo rates charged by air

transport undertakings of Agreement States shall be set by free

agreement between the parties to the contract of carriage.

(1) Where a permission granted under article 9 of the Civil

Aviation Act to an air transport undertaking of a non-Agreement

State contains a tariff provision, the operator or charterer of the

aircraft concerned shall file with the Director the tariff which it

proposes to apply on flights to which the said permission relates

and the Director shall consider the proposed tariff and may, if he

thinks fit, approve or disapprove it.

(2) For the purposes of this regulation, "tariff provision" means

a condition as to any of the following matters

(a) the price to be charged for the carriage of passengers,

baggage or cargo on flights to which a permission

granted under article 9 of the Civil Aviation Act

relates;

(b) any additional goods, services or other benefits to be

provided in connection with such carriage;

(c) the prices, if any, to be charged for any such additional

goods, services or benefits; and

(d) the commission, or rates of commission, to be paid in

relation to the carriage of passengers, baggage or

cargo;

and includes any condition as to the applicability of any such price,

the provision of any such goods, services or benefits or the

payment of any such commission or of commission at any such

rate.