But EU Approval Still On Hold

India's government has approved a landmark deal with the United States that allows US officials to assist in modernizing Indian airports, as the aviation sector in that country continues to boom.

Under the agreement, the US will provide help with policies, procedures, operations and training at airports across India. It's similar to an agreement the US has with more than 100 countries worldwide -- except in this case, the Indian government wants FAA help on technical and managerial matters as well.

And speaking of other governments that have agreed to similar "Open Skies" policies with the US, there is a notable holdout: the European Union, whose agreement -- approved months ago -- continues to be in a holding pattern as authorities with the EU and the US hash out rules allowing European companies a greater say in managing US airlines.

"It's in their hands," EU transportation spokesman Stefaan de Rynck, told the New York Times. "We're still hoping for meaningful change."

As Aero-News has reported, under current regulations foreign companies can own only 25 percent of a US airline -- and can have little to no role in actually running them. The Bush administration is aiming to change that, acting on the measure unilaterally -- without approval from Congress.

However, that rule change -- and, therefore, the Open Skies agreement -- is on hold now because of strong political opposition here at home. Unions representing US airline workers say they want the proposed rules rewritten to limit foreign influence on wage and benefit negotiations.

Some lawmakers also oppose the agreement, saying the Bush administration is doing without a vote what should rightfully be mandated by Congress.

Now, the Department of Transportation says it could be several more weeks before the management rule change takes effect -- as the administration reportedly waits for the political heat to die down.

FMI: www.eu.int