Mr. Filip Cornelis:

I thank the Chairman and the committee for inviting the European Commission to provide information on the circumstances facing the aviation sector in the context of Covid-19. We have seen in Europe, including Ireland, and throughout the world that since the outbreak of the pandemic, transport has suffered a dramatic reduction in traffic. Aviation, particularly international aviation, was hit first and very hard. I might quote a few figures for Europe. The number of flights contracted by almost 90% in April, while in June, it remained 80% below the levels of 2019. Over the summer, we recorded a slight but brief recovery, and even then, the number of flights in Europe did not reach more than 50% of last year's traffic levels in August.

Since August, there has again been an aggravation of the circumstances. In its most recent comprehensive assessment, Eurocontrol reported a 57% reduction in the number of flights year on year for the month of October and expects it to deteriorate further. I recommend to the committee the information provided by Eurocontrol, which is very helpful for policymakers throughout Europe. Broadly speaking, traffic, as we enter the final phase of the year, will be less than half that of last year. In terms of the number of passengers travelling, we are in the order of only one quarter of the normal number of passengers.

This has a significant impact on the performance of the sector. It is estimated that the losses, or the combined revenue forgone by airlines, airports and air navigation service providers, will be of the order of €100 billion this year. These figures are dramatic but do not reflect the total impact. We should add the impact on related sectors, such as aircraft manufacturing and maintenance, and those such as tourism that depend on air travel. It is clear that the crisis is completely dwarfing downturns of the past that resulted from external shocks, whether 9/11, the severe acute respiratory syndrome, SARS, epidemic or the 2008 financial crisis. The low traffic we have been experiencing for the better part of this year is clearly not sustainable, despite the efforts to cut costs in the sector. We can expect, if circumstances continue, market exits, redundancies and job losses to multiply as airlines and airports scale back to survive this crisis.

This is a sector that employs, directly and indirectly, some 12 million people in Europe and is contributing more than €700 billion to European GDP, not to mention its impact on social and economic cohesion, in the broader sense of that word, throughout the EU.

I wish to outline the response we have tried to give at the European Commission and EU level. First, immediately after the start of the outbreak, we took a number of steps to ensure regulatory relief for the aviation sector and address key issues, including the introduction of a waiver of the use-it-or-lose-it rule for airport slots. We published guidelines on air cargo in order to maintain the flow of cargo by air. We published guidelines on passenger rights and guidance on the possibility of introducing temporary public service obligations. Most recently, we have extended the waiver of the airport slot use-it-or-lose-it rule for the winter season 2020-21. We also worked with the European Union Aviation Safety Agency, EASA, and the European Centre for Disease Prevention and Control, ECDC, to devise an aviation health and safety protocol. This protocol, which was jointly published by the two agencies in May 2020, set out measures to ensure the health and safety of passengers and crew during all stages of an air journey. Both passengers and the industry, as well as many member states, have welcomed and implemented those guidelines. Some member states have even made them mandatory. The health and safety protocol will be updated as we go forward on the basis of experience of, and increasing insight into, the nature of transmission of the coronavirus.

We have also put in place a temporary framework for state aid to assist member states to support businesses, particularly formerly healthy businesses, to weather the storm. This framework has been used by a number of member states to provide targeted support to a significant number of airlines, including the Lufthansa Group, Air France-KLM, EasyJet and others, to airports in Germany, Belgium and other member states, and to promote connectivity measures such as the scheme put in place by Cyprus. Taking into account the prolongation of the crisis, the state aid temporary framework has just been extended until the middle of next year. In addition, the provisions on recapitalisation aid are extended until September next year. The Commission continues to constantly review the situation and adapt measures where needed going forward.

In regard to travel within and outside the EU, the Commission has advocated a harmonised easing of border restrictions following the first wave of lockdowns in the spring. Back in June, we initiated a harmonised easing of border restrictions between member states in order to restore freedom of movement within the EU, as much as possible, while continuing to protect public health. This remains a top priority for the Commission and we are working continuously with member states and the German Presidency to co-ordinate action on travel within the EU. On 13 October, the European Council adopted a recommendation on a co-ordinated approach to the restriction of freedom of movement in response to Covid-19. This was based on a Commission proposal that sought to address some of the confusion that was caused by different systems and different approaches by member states to classifying regions in Europe, a confusion which has contributed, in turn, to a reduction in travel, including air travel, within Europe.

In the case of travel outside Europe, following a proposal from the Commission before the summer, the Council adopted a recommendation on the gradual lifting of temporary restrictions on non-essential travel into the EU. Based on the criteria and conditions set out in that recommendation, which was adopted on 30 June, member states were advised to gradually lift travel restrictions at external borders for residents of specified third countries, the list of which is regularly updated. The latest update was done on 22 October.

Testing of travellers is a topic that has been very much under attention in recent weeks. On 18 September, the Commission published a set of recommendations for a common approach to Covid-19 testing in the EU. The recommendations set out concrete actions to support member states in the planning and organisation of testing efforts during different stages of the pandemic and mapping out the different testing regimes currently in place and their underlying criteria. I will highlight the recommendations that are of particular relevance to aviation. Any travel restrictions put in place must be well co-ordinated among countries, proportionate, non-discriminatory and should focus on what is necessary for the protection of public health. Where tests are required for travellers wishing to cross national borders, this should be seen as a special category of testing that, because it involves cross-border travel, requires agreement on common criteria and the necessary preconditions and tools needed for mutual recognition of test results. To prevent the reintroduction of the virus into countries or subnational regions that have achieved a sustained control of Covid-19, consideration may be given to targeted testing and follow-up of individuals coming from other areas within the same country or other countries that have higher transmission levels. Where countries decide to implement travel restrictions, it is recommended that testing of symptomatic travellers directly upon their return be a priority. The recommendations were endorsed by the EU Health Security Committee, which brings member states together in an attempt to streamline national approaches and ensure more coherent Covid-19 testing strategies across the EU, including those applying to travellers.

Freedom of movement and the single aviation market are key achievements of European integration. They have brought us closer together as Europeans and have driven forward the European economy. We believe that restoring full freedom of movement can be done while, at the same time, protecting public health. Clearly, a more co-ordinated approach is needed among EU member states while also respecting that public health remains a national policy competence. There is no contradiction between the two. To achieve our objective of restoring freedom of movement, we must support health and safety measures in the aviation sector through effective mitigating measures that are science-based, risk-based and limited to what is strictly necessary for containing the pandemic. The Commission will continue to advocate strongly for those principles to be at the heart of a co-ordinated response to Covid-19. I thank the committee for inviting me to this exchange of views and I look forward to our discussion.