- 2 - CHANGES IN THE MAIN RULES GOVERNING COMMUNITY AIRLINES OPERATING LICENCES Prior to 1986 Each Member State decided its own rules for awarding licences. The only rights the national airline of one Member State had in another State were those granted under bilateral agreements concluded between the Member States concerned. As from 1993 Criteria have been agreed for granting licences to national airlines. The requirements laid down by the Community concern: . the place where the company headquarters are established; . who holds the capital and the need for the company to be controlled by nationals of Community Member States; . the airlines' financial capacity; . civil liability insurance; . safety. National airlines have Community sta ...[+++]tus and will benefit from the advantages afforded by Community legislation (freedom to provide services anywhere in the Community). AIR FARES AND AIR CARGO RATES Prior to 1986 Both Member States at either end of a route had to approve a fare before it could be applied on routes between those States (double approval).

Below 30% of the reference fare, the system of double approval applies as to fares which fall within the zones but which do not comply with the con- ditions attaching to those zones.

Such agreements will only be authorized to the extent that they help to ensure regular and reliable air services during less busy periods, safe utilization of airport capacity and airspace, and open procedures for consultations on tariffs.

The same applies to air transport, where the key components of the package of measures geared to opening up the market have either been tabled (air traffic control, cargo, denied boarding, airworthiness standards, slot allocation) or will be within the next few months (flight time limitations, cabotage, double disapproval of fares, recognition of personnel licences, procurement and procedures).