EU ministers back 'open skies' plan
Friday, March 23, 2007
EUROPEAN UNION transport ministers gave their backing yesterday for plans to expose the transatlantic aviation market to tougher competition under an "open skies" accord, EU officials said.
"I am delighted to have piloted this agreement to its destination with all passengers still on board," EU Transport Minister Jacques Barrot said. "The deal is of great political and economic importance."
The European Commission, which negotiated the deal on the EU's behalf, says consumers will see up to €12 billion (US$16 billion) in economic benefits as increased competition brings downs ticket prices.
The European Union estimates the agreement 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.
It is set to be signed in Washington on April 30 but will now only come into effect in March 2008, instead of October 28 this year, as originally planned, to take into account British objections.
An open skies deal is supposed to replace the patchwork of existing bilateral air transport agreements between EU members and the United States, eight of which the European Court of Justice has ruled are illegal.
Under the draft deal, any EU carrier would be able to fly from anywhere in the bloc to any point in the US and vice versa.
At the start of the meeting in Brussels, it was still uncertain whether Britain would give its go-ahead to the deal, which needed backing from all 27 EU members.
Britain had deep reservations because it would lift restrictions on the number of airlines that can operate profitable transatlantic flights from Heathrow airport outside London.
"This confidence and unity means that the European side enters the next phase of negotiations with the US in a strong position," Barrot said.
AFP
"I am delighted to have piloted this agreement to its destination with all passengers still on board," EU Transport Minister Jacques Barrot said. "The deal is of great political and economic importance."
The European Commission, which negotiated the deal on the EU's behalf, says consumers will see up to €12 billion (US$16 billion) in economic benefits as increased competition brings downs ticket prices.
The European Union estimates the agreement 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.
It is set to be signed in Washington on April 30 but will now only come into effect in March 2008, instead of October 28 this year, as originally planned, to take into account British objections.
An open skies deal is supposed to replace the patchwork of existing bilateral air transport agreements between EU members and the United States, eight of which the European Court of Justice has ruled are illegal.
Under the draft deal, any EU carrier would be able to fly from anywhere in the bloc to any point in the US and vice versa.
At the start of the meeting in Brussels, it was still uncertain whether Britain would give its go-ahead to the deal, which needed backing from all 27 EU members.
Britain had deep reservations because it would lift restrictions on the number of airlines that can operate profitable transatlantic flights from Heathrow airport outside London.
"This confidence and unity means that the European side enters the next phase of negotiations with the US in a strong position," Barrot said.
AFP
2007/3.%20March/23%20Mar/BT23Mar.1.pdf
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