Issues Still Remain, To Be Ironed Out Next Year

Fulfilling agreements made earlier this year between the United States and the European Union, on Monday the two sides signed a landmark "open skies" agreement significantly easing restrictions on transatlantic flights.

"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. "Also, better access to American destinations means European visitors will bring new business to our local communities."

Reuters reports the new agreement -- which supplants many restrictions in place since the post-WWII era -- allows airlines on both sides of the pond unprecedented access to new routes connecting any city in the US with a city within the 27-nation EU bloc.

As Aero-News has reported, most of the attention since the initial, tentative pact was announced in March has focused on opening new routes for US carriers to London's Heathrow Airport -- which is already near capacity. As part of the deal formalized Monday, officials in the UK won a six-month delay in allowing US airlines to compete fully for slots at Heathrow.

The deal has been criticized as lopsided by some European airline officials -- because in its first phase, it allows US airlines to fly between cities in Europe -- but won't offer Europe's airlines the same opportunity in the US.

Proponents of the deal respond European carriers may actually reap most of the benefits under Open Skies, at least to start. Several carriers within the EU -- including Virgin Atlantic, Aer Lingus, and low-cost carrier Ryanair -- have announced plans to pursue new routes to the US. Others -- such as Air France-KLM, Lufthansa and British Airways are mulling over their plans.

"Already, the European airline industry is feeling its effects in a positive way, with plans for new services and signs of a much more flexible and dynamic approach to airline investment among European carriers," said Jacques Barrot, vice president of the European Commission.

Additional benefits for US carriers may have to wait until a second stage of talks begin in mid-2008, when negotiators will meet once again to discuss topics that failed to win agreement the first time around -- including a loosening of restrictions on foreign ownership of US carriers.

FMI: www.dot.gov, www.eu.int