Business | Aviation
EU and US seal open skies deal
European Union transport ministers unanimously backed a landmark agreement with the United States yesterday that will throw open transatlantic air travel to more competition and drive down fares.
- Reuters
- Published: 00:00 March 23, 2007
Brussels: European Union transport ministers unanimously backed a landmark agreement with the United States yesterday that will throw open transatlantic air travel to more competition and drive down fares.
But the 27 ministers, at Britain's request, decided on a five-month delay in implementing the deal so it will take effect on March 30, 2008 instead of October this year.
German Transport Minister Wolfgang Tiefensee, who chaired the talks, hailed a "breakthrough" that would give a boost to transatlantic relations and benefit consumers and airlines.
The "open skies" agreement will allow EU airlines to fly from any city in the 27-nation bloc to any city in the United States and vice versa, replacing highly restrictive bilateral arrangements dating back to World War II.
Boost
EU Transport Commissioner Jacques Barrot forecast the deal would boost transatlantic flights by 50 per cent over five years and he expected it to trigger takeovers among European airlines.
European member states would be able to withdraw benefits of the agreement from US airlines if Washington did not agree by 2010 to allow foreign airlines to buy control of US carriers, he said.
"The deal is of great political and economic importance," Barrot told reporters. "I am delighted to have piloted this agreement to its destination with all passengers still on board."
Proponents say "open skies" would boost competition, increase flight frequencies, reduce fares and create jobs on both sides of the Atlantic.
US welcomes landmark agreement
The US welcomed the backing of EU transport ministers for the pact, saying it was historic and would benefit consumers.
"The historic decision will bring new and valuable benefits to air travellers and communities on both sides of the Atlantic," Transportation Secretary Mary Peters said.
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