Explanatory note

These Regulations amend the Civil Aviation (Route Charges for Navigation Services) Regulations 1989 as follows–

The European Currency Unit replaces the United States dollar as from 1st January 1990 for the purposes of payment and calculation of the charge payable to the Eurocontrol Organisation as agreed between the Member State of Eurocontrol (regulations 2(1), (2) and (3)).

For the purpose of calculating the charges specified in regulations 6 and 7 of the principal Regulations the rate of exchange of the ECU to a national currency shall in cases where the Commission of the European Communities has established the average monthly rate of exchange of the ECU to a national currency be that rate of exchange, which is published in the Commission`s Official Journal (Information and Notices). In cases where the Commission of the European Communities has not established the average monthly rate of exchange of the ECU to a national currency, the relevant rate of exchange is to be calculated by reference to the rates of exchange between the ECU and the United States dollar and between the national currency and the United States dollar established by the International Monetary Fund and published in the Fund`s International Financial Statistics (regulation 2(4)). Both publications can be inspected at the Civil Aviation Authority Central Library, CAA House, 45-59 Kingsway, London WC2B 6TE.

New rates and transatlantic tariffs are introduced reflecting forecasts of costs and traffic for 1990 and taking into account the balance of over and under recoveries of revenue as compared with costs experienced by the countries participating in the Eurocontrol charging system in 1988 (regulation 2(5) and Schedule 1).

The unit rates in ECUs set out in Schedule 1 and the amount of the charges in ECUs set out in Schedule 2 are calculated by reference to the costs of provision of en-route navigation services in the participating countries in the Eurocontrol charges system, the amount of the traffic using each country`s airspace and the relationship of each country`s currency to the ECU over a period agreed by Ministers of the participating countries. The interaction of these elements varies in each country. In calculating the revised charges the average of the exchange rates between the ECU and the currencies of the participating countries obtaining in the month of July 1989 have been used. Malta which became a Member State of Eurocontrol in 1989 is included for the first time.

The unit rates for Austria, Belgium, Federal Republic of Germany, Grand Duchy of Luxembourg, Ireland, Netherlands and Switzerland have decreased by an average of 15.0 per cent and for Portugal (Santa Maria) by 4.6 per cent. The unit rates for France, Greece, Portugal (Mainland), Spain (Mainland) and Turkey have increased on average by 29.4 per cent and for Spain (Canaries) by 37.9 per cent. The unit rate for the United Kingdom has increased by 39.7 per cent. These variations are not comparable as some countries are repaying in 1990 large sums over recovered in previous years.