31.12. 87 Official Journal of the European Communities No L 374/9 COUNCIL REGULATION (EEC) No 3976/87 of 14 December 1987 on the application of Article 85 (3) of the Treaty to certain categories of agreements and concerted practices in the air transport sector THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community and in particular Article 87 thereof, Having regard to the proposal from the Commission (1), Having regard to the opinions of the European Parliament (2), Having' regard to the opinions of the Economic and Social Committee (3), Whereas Council Regulation (EEC) No 3975/87 (*) lays down the procedure for the application of the rules on competition to undertakings in the air transport sector; whereas Regulation No 17 of the Council (%) lays down the procedure for the application of these rules to agreements, decisions and concerted practices other than those directly relating to the provision of air transport services; Whereas Article 85 (1) of the Treaty may be declared inapplicable to certain categories of agreements, decisions and concerted practices which fulfil the conditions contained in Article 85 (3); Whereas common provisions for the application of Article 85 (3) should be adopted by way of Regulation pursuant to Article 87; whereas, according to Article 87 (2) (b), such a Regulation must lay down detailed rules for the application of Article 85 (3), taking into account the need to ensure effective supervision, on the one hand, and to simplify administration to the greatest possible extent, on the other; whereas, according to Article 87 (2) (d), such a Regulation is required to define the respective functions of the Comission and of the Court of Justice; Whereas the air transport sector has to date been governed by a network of international agreements, bilateral- agreement between States and bilateral and multilateral (') OJ No C 182, 9.7. 1984, p. 3. (?) OJ No C 262, 14. 10. 1985, p. 44; OJ No C 190, 20. 7. 1987, p. 182 and O] No C 345, 21.12.1987. ' (?) OJ No C 303, 25. 11. 1985, p. 31 and OJ No C 333, 29. 12. 1986, p. 27. (*) See page 1 of this Official Journal. (*) OJ No 13, 21. 2. 1962, p. 204/62. agreements between air carriers; whereas the changes required to this international regulatory system to ensure increased competition should be effected gradually so as to provide time for the air-transport sector to adapt; Whereas the Commission should be enabled for this reason to declare by way of Regulation that the provisions of Article 85(1) do not apply to certain categories of agreements  between undertakings, decisions by associations of undertakings and concerted practices; Whereas it should be laid down under what -specific conditions and in what circumstances the Commission may exercise such powers in close and constant liaison with the competent authorities of the Member States; Whereas it is desirable, in particular, that block exemptions be granted for certain categories of agreements, decisions and concerted practices; whereas these exemptions should be granted for a limited period during which air carriers can adapt to a more competitive environment; whereas the Commission, in close liaison with the Member States, should be able to define precisely the scope of these exemptions and the conditions attached to them; Whereas there can be no exemption if the conditions set out in Article 85(3) are not satisfied; whereas the Commission should therefore have power to take the appropriate measures where an agreement proves to have effects incompatible with Article 85 (3); whereas the Commission should consequently be able first to address recommendations to the parties and then to take decisions; - Whereas this Regulation does not prejudge the application of Article 90 of the Treaty; Whereas the Heads of State and Government, at their meeting in June 1986, agreed that the internal market in air transport should be completed by 1992 in pursuance of Community actions leading to the strengthening of its economic and social cohesion; whereas the provisions of this Regulation, together with those of Council Directive 87/601/EEC of 14 December 1987 on fares for scheduled air services between Member States (¢) and those of Council Decision 87/602/EEC of 14 December 1987 (°) See p. 12 of this Official Journal,