WAS GEORGIAN PARLAMENT INVOLVED IN INTERNATIONALE SCANDAL?

EKA LOMIDZE

On February 27 the Parliament of Georgia passed law on Problems of air transport that led to a difference of opinions.

To expert’s mind, the six-clause provision gives serious grounds for concern as it opposes principal requirements of international relations and main principles of democracy limiting free market rules in aviation area.
According to one clause of the provision, civil aircraft administration of Georgia has no right to issue a temporary license to the air companies that make regular flights to Georgia. This resolution means that no company except Airzena would make flights in the direction of Europe, as British and Turkish airlines have a temporary license.
This provision was lobbied by Entrepreneurs in the Parliament. Interested countries might take the similar measure with respect to domestic companies. We can just imagine what a predicament Airzena would find itself in. Experts say after this provision Airzena has enjoyed hothouse conditions. If Airzena faced the same situation in England, Israel, Czech republic, Austria and Greece where it makes flights to, the company would, in fact, lose its functions.
To experts’ mind, the provision of 27 February might lead to international scandal through the intrusion of diplomatic channels and we would be forced to change it. IATA (International Air Transport Association) and IACO (International Aviation Civil Organisation) statues were patently disregarded by the Georgian Parliament.
If Airzena were granted monopolistic rights in compliance with the Parliament’s provision, this would violate principles of market economy leading to artificial barriers for other companies and non-competitive environment in the country. One might receive the impression that the national company is lobbied by the state This is considered a “norm” for Airzena. Head of public relations service of the air company said: I think, state should lobby the national company, as is the case in all developed countries.
Zviad Mukbaniani, author of the provision, thinks that the provision will not cause deterioration of Georgia’s relations with foreign countries though Georgia being a member-country of European Council will not be able to avoid the scandal. Broad report about Georgia will be made in September. Membership of Georgia in European Union will depend on this report. If responsibilities undertaken by us are not estimated positively, Georgia will find itself in a difficult situation. Therefore, in this stage we should try to avoid international scandals.
Armaz Tavadze, head of state antimonopoly service of Georgia, refrains from commentaries. He says provisions and international agreements should be recalled from both Foreign Affairs Ministry and the Parliament. Proceeding from the specifics of the sphere, the issue of international bilateral regulation should be revised. Based on the analysis of all this information, antimonopoly service will have particular position. “State can lobby a certain branch only without breaking any norms ” – said Tavadze.
Yet, chairman of economic committee of Georgia Demur Giorkhilidze says: The purpose of the provision is that air transport of Georgia and foreign companies should be based on complete parity relations without limiting foreign companies. Parity implies opportunities of the Georgian party.
The provision does not contradict the agreement between Georgia and Turkey on air transport flights and it does not contradict the paraffin agreement with the British party. We mean that such private economic subjects as British and Turkish airlines should find basics of parity relations with private Georgian companies. Thus, a particular subject can have his own considerations. However, the provision did not only envisage for the limitation of a certain party (no limitation is possible as there are government provisions), but preservation of parity and specular rights of both parties.
The status of air flagman transportation of Georgia is a legal position of national air carrier determined by an appropriate provision. This provision regulates international aviation market of Georgia and provokes real competitive environment to foreign air carriers. As a rule, the function of air carrier are regular flights between Georgia and foreign countries.
The wide public of Georgia does not know that the court deprived air company Airzena from the status of national flagman because it did not make any internal flights. It is also noteworthy that Airzena offers discounts 30% and free of charge tickets to Parliament members and other high-rank officials. Yet, this contradicts the public law on disparity of interests in public service and corruption (chapter I, article 5).