Victim of open skies

By Administrator |

Irish Minister for Transport Martin Cullen was unable to initiate a discussion on the EU?s aviation security regulations yesterday as his planned intervention fell victim to a very full agenda at the 'Open Skies' meeting

of 27 EU transport ministers.

While the European Travel Retail Council (ETRC) lobbyists Hume Brophy Communications said they were obviously disappointed, spokesman Conor Foley said they were still very pleased that there was strong support for resolving the issue in marginal and initial discussions at the meeting from the Danes, Greeks and several other member states.

He said the next two crucial dates will now be the April 30 EU-US Summit and the next Transport Council meeting scheduled for June 5-6.

Meanwhile, European Union transport ministers unanimously backed the ‘open skies’ aviation deal with the US which is supposed to ease restrictions on travel between Europe and the US, although EU ministers agreed to a request from the UK that plans to implement the deal should be delayed until March 2008.

At the same time, EU Transport Commissioner Jacques Barrot warned that the agreement could collapse if the US did not act to allow foreign airlines more investment in the sector – the chief concern behind the UK's call for delayed implementation.

The UK had raised concerns that open skies reform does not go far enough on US airline ownership rights while the US is continuing to insist on limiting foreign owners to no more than 25% of a US airline's voting rights.

The EU said consumers would see a total of up to $16bn in economic benefits as a result of the deal, as increased competition brings down air fares. Officials said the agreement could generate 26m more airline passengers over the next five years, and create up to 80,000 new jobs in the EU and US.

Under the original open skies plan, any EU-based airline will be allowed to fly from any city within the EU to any city in the US, and vice versa – although EU carriers will not be allowed the same rights on domestic routes within the US.

The agreement is set to be signed during the EU-US Summit on April 30, although not everyone is happy. British Airways believes that that the deal has given away landing slot rights at important airports such as Heathrow with no guarantees from the US in return and it has called on the UK government to stand by its promise to withdraw traffic rights if the US does not deliver further liberalisation by 2010.

Meanwhile, Airports Council International Europe said it welcomed the development. Olivier Jankovec, Director General said: ‘I am pleased of the EU Transport Council?s decision today. This is an important step which will open new opportunities and bring valuable economic benefits for airports around Europe, particularly for those which have yet to benefit from route liberalisation with the US, such as Spain and Ireland. However, we must not stop here. What Europe and America must achieve next is full and effective liberalisation and compatibility of regulatory frameworks’.

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