Transport Commissioner Wants More Access to US Domestic Market

A current U.S. offer on opening airline markets is insufficient and more talks are needed, EU transport ministers said, adding that a deal may not be possible this year. The EU wants the United States to further ease ownership limits and give EU carriers more access to U.S. routes. For Washington, a key goal is having more carriers operating out of Europe's busiest airport, Heathrow in London.

"The presidency recognizes that it would not be able to conclude an agreement this year," said Irish Transport Minister Seamus Brennan, whose country holds the rotating presidency of the EU and who chaired a meeting of EU transport ministers. They urged the European Commission, the executive arm of the EU, which is negotiating the deal, to ask for further U.S. concessions in another round of talks due on March 29. European Transport Commissioner Loyola de Palacio said a deal might be possible this year, but Washington had to improve its offer on access to its domestic market. She welcomed an offer to ease restrictions on ownership limits.

A U.S. proposal would allow EU investors to own up to 49 percent voting stock in a U.S. carrier, up from 25 percent. But Europe also wants permission for its airlines to offer flights within the United States, something the administration and Congress are not willing to consider. De Palacio said a two-phase deal could be struck, under which the United States first eased ownership restrictions and gave some access to the U.S. domestic market. It would then commit to a second round of talks by a certain date with specific further liberalizing measures on the table.

Br itain is particularly concerned about the talks as it accounts for a major share of the EU-U.S. air market. Transport Secretary Alistair Darling told reporters the current U.S. offer was insufficient. "The offer is balanced and is not acceptable to us and therefore should not be acceptable to the other (EU) member states," he said. He said Britain backed a fully liberalized EU-U.S. air market, but ruled out concessions just to get a quick agreement.

"The general feeling (among EU ministers) is that it may take some time to negotiate something," he added.

De Palacio said she did not want the talks to drag out too long. EU states that have their own bilateral deals with Washington may have to cancel them, she said. The talks began after an EU court ruled that bilateral agreements broke European rules that create a single internal market in the bloc.

FMI: http://europa.eu.int