The Principal Purpose Test

The Principal Purpose Test

Tuesday, 11 March 2014

The role of the Principal Purpose Test is to determine whether the principal purpose of a cross-border service is to carry passengers between stations located in different Member States, as opposed to entering a domestic passenger market.

CER expresses a preference for a simple test based only on projected annual revenue and/or traffic volume shares, with the test result dependent only on whether the relevant shares exceed reasonable pre-determined and published thresholds. Other variables collected by the regulatory body should have the main purpose of facilitating the estimates of revenue and/or traffic volume shares.