We seek to explain the transfer of competence to govern, from national
to supranational authorities, in air transport. We ask two questions.
First, how and why did air transport come on to the European legislat
ive agenda? Second, why did member state governments agree to divest t
hemselves of control at the national level? In responding to these que
stions, we at times focus on the Council of Ministers, and therefore o
n intergovernmental stages of the legislative process. Such a focus, h
owever, need not entail adopting intergovernmentaIist theories of inte
gration. On the contrary, our case study broadly supports theoretical
arguments developed by Stone Sweet and Sandholtz (1997), and corrobora
tes recent research on the origins and evolution of supranational gove
rnance. We find that the intensity of transnational exchange and the p
ro-integrative behaviour of the European Community's (EC's) supranatio
nal organizations not only generated the context in which intergovernm
ental bargaining took place, but provoked the emergence of supranation
al governance.