EU to approve open-skies deal
Updated March 21, 2007 9:16:26 AM
Bruce Barnard / The JOURNAL of COMMERCE ONLINE
LONDON -- Great Britain has reportedly decided not to veto a landmark aviation pact between the European Union and the United States that will open up the $18 billion trans-Atlantic cargo and passenger market to greater competition.
London has signaled it won’t block the planned open-skies deal when EU transport ministers vote in Brussels Thursday, but wants to delay its implementation at London Heathrow airport, a key cargo gateway.
Britain also wants the EU to agree to automatically cancel concessions under the accord if Washington doesn’t agree by mid-2010 to allow European airlines to acquire control of U.S. carriers. The U.S. currently only allows foreign investors to own up to 25 percent of the voting stock of its airlines.
Britain, which is isolated in the 27-nation EU, has indicated that could yet change its position tomorrow if it does not win concessions on these two key issues.
As a result, the European Commission, the EU’s executive which negotiated the accord, is said to have prepared a procedure whereby it could be passed by a qualified majority vote if ministers cannot reach unanimity.
The accord would scrap current traffic rights based on carriers’ nationality and allow European and U.S. passenger and cargo
airlines to fly between any points in the 27 EU nations and the United States.
Washington on Tuesday made a minor concession by lifting its ban on plans by Virgin Atlantic to set up a domestic low cost carrier, Virgin America.
Updated March 21, 2007 9:16:26 AM
Bruce Barnard / The JOURNAL of COMMERCE ONLINE
LONDON -- Great Britain has reportedly decided not to veto a landmark aviation pact between the European Union and the United States that will open up the $18 billion trans-Atlantic cargo and passenger market to greater competition.
London has signaled it won’t block the planned open-skies deal when EU transport ministers vote in Brussels Thursday, but wants to delay its implementation at London Heathrow airport, a key cargo gateway.
Britain also wants the EU to agree to automatically cancel concessions under the accord if Washington doesn’t agree by mid-2010 to allow European airlines to acquire control of U.S. carriers. The U.S. currently only allows foreign investors to own up to 25 percent of the voting stock of its airlines.
Britain, which is isolated in the 27-nation EU, has indicated that could yet change its position tomorrow if it does not win concessions on these two key issues.
As a result, the European Commission, the EU’s executive which negotiated the accord, is said to have prepared a procedure whereby it could be passed by a qualified majority vote if ministers cannot reach unanimity.
The accord would scrap current traffic rights based on carriers’ nationality and allow European and U.S. passenger and cargo
airlines to fly between any points in the 27 EU nations and the United States.
Washington on Tuesday made a minor concession by lifting its ban on plans by Virgin Atlantic to set up a domestic low cost carrier, Virgin America.
