This paper offers sectoral evidence in support of the argument that a partial transference of sovereignty has occurred within the EU with the gradual shift in regulatory authority from national capitals to Brussels. This transfer of policy competence is evident even in politically sensitive areas such as civil aviation. However, whilst Europe's supranational institutions have gained in de jure power, they often remain lacking in de facto authority. Democratic legitimacy ensures that nation-states retain real authority in areas such as air transport. This authority is nonetheless being steadily challenged by Brussels and a genuine balance of power is emerging. This has been evident in the development of air transport liberalisation, where a Commission-led coalition of interests ensured that deregulation occurred – despite the resistance of several influential national governments. State aid regulation has been more contentious, with EU rulings frequently encountering resistance from governments seeking to preserve perceived national interests.