ATW Daily News

Open skies passes with nod to UK concerns

Friday March 23, 2007

Although unable to slow the momentum toward unanimous passage of the recently negotiated open skies agreement between the EU and US, UK Transport Secretary Douglas Alexander nevertheless salvaged a couple of concessions during yesterday's vote by the EU's Transport, Telecommunications and Energy Council that established open skies and opened London Heathrow to competition.

Taking care to indicate that the new accord constitutes just the "first stage" of a "comprehensive air services agreement," the Council yesterday announced that the pact will take effect on March 30, 2008, rather than Oct. 28 of this year, thus coinciding with the planned opening of LHR's Terminal 5. "The Commission was asked to secure agreement of the US to confirm their agreement to reflect this," the Council said.

In addition, the Council established that if a Stage 2 open skies accord, likely addressing foreign control of US airlines and cabotage, is not reached by 2010, then any EU state "may notify to the Commission which traffic rights in relation to its own territory it wishes to suspend" subject to certain conditions. EC VP-Transport Jacques Barrot warned last week that the EU had the leverage required to force further negotiations (ATWOnline, March 14).

The US Dept. of Transportation did not comment on the new provisions but issued a statement from Secretary Mary Peters, who called the Council's vote "historic" and said, "Tearing down regulatory barriers. . .gives our airline industry more opportunities to compete, innovate and thrive" and the US "look[s] forward to the positive effects this agreement will bring. . .for years to come."

Barrot offered subtle thanks to the UK, saying he was "delighted to have piloted this agreement to its destination with all passengers still on board." He said the EU will enter the "next phase of negotiations with the US in a strong position" and that a second stage will "deliver greater freedom for investors in aviation, even closer cooperation between the two sides and a healthier air transport industry in general."

The agreement is scheduled to be signed at an EU-US summit in Washington on April 30.

by Brian Straus

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