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US, EU ink 'open skies' pact
US, EU ink 'open skies' pact
Tuesday May 01, 2007
The United States and European Union formally signed an "open skies" accord Monday aimed at opening up more competition in transatlantic aviation.
The agreement, the fruit of several years of negotiations, will take effect next March 30 and will eliminate most limitations on US and EU airlines' ability to fly between the two continents.
"With this agreement, the honeymoon in Paris, the business trip to Dublin, and family reunion in Naples will be cheaper, easier, and within the reach of more Americans than ever before," said US Transportation Secretary Mary Peters after the pact was signed on the sidelines of a US-EU summit in Washington.
"Also, better access to American destinations means European visitors will bring new business to our local communities."
"This agreement is both a centerpiece for today's reinvigorated transatlantic relationship and a big step forward in international aviation," said EU Commission Vice President and Transportation Commissioner Jacques Barrot.
Both sides hold out the promise of cheaper airfares and more choice for passengers under the hard-fought agreement.
The European Union estimates it could generate more than 26 million extra passengers over the next five years and create 80,000 new jobs in the EU and United States combined.
Under the draft agreement, any EU carrier would be able to fly from anywhere in the bloc to any point in the United States and vice versa. But EU airlines will still not be able to operate domestic US routes.
Unanimous EU agreement on the deal was possible only after ministers overcame British reservations about competition out of Heathrow, by delaying the date of application to the end of March 2008.
The agreement also lift restrictions on EU carriers buying big stakes in US airlines, although their voting rights in a US carrier would remain capped at 25 percent, to the chagrin of Britain.
EU officials said their "ultimate objective" is to go even further by creating an "Open Aviation Area" -- a single air transport market between the EU and the US "in which investment can flow freely and in which European and US airlines can provide air services without any restriction," according to an EU statement.
The EU said negotiations for the next phase of deregulation would start no later than May 30, 2008.
AFP
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