Civil aviation initially played no part in the common transport policy. Air services between the member
states were regulated by bilateral agreements. Regulatory developments and changes have contributed
towards the creation of a single aviation market within the European Union. As a result of the 1944
Chicago conference and the 1919 Paris convention before it, the principle of sovereignty over air space
has given countries the right to regulate air services to, from and within their countries. In 197445 the
European court of justice ruled that the Treaty of Rome competition rules applied to air transport. In
1975 the Commission recommended the establishment of a European market in aviation. The Commission’s
memorandum46 called for a liberalisation of the bilateral restrictions and a review of state
subsidies. In 1984 the Commissions second47 memorandum on air transport recommended for further
measures. The final moves towards the single European aviation market came in effect on 1 January
199348 as a result of the third package of measures.