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EU & US 'Open skies' deal is delayed

The 'open skies' deal, introduced with the aim of lifting flight restrictions between the EU and the US,  is being further delayed due to resistance from UK airline carriers.

The deal proposes to allow flights from anywhere in the EU to fly to anywhere in the US, without any pricing or capacity restrictions. This would enable airlines to set their own fares freely, though it raises concerns as to what is free and fair competition. At present, only four airlines; British Airways, Virgin Atlantic, United Airlines and American Airlines are able to fly between the US and Heathrow airport.

British Airways and Virgin Atlantic are concerned they will lose out on landing and take-off slots at Heathrow as a result of the deal, and have therefore not yet agreed to it. What's more, lawyers have shown that the UK has the right to veto the deal, which may well be an option to be pursued.

Normally, majority voting decides transport issues within the European Union. However, the "open skies" deal, would require approval from all 27 EU-member states according to the European Council, which represents EU ministers.

The EU transport minister will be encouraging member states to back the agreement. However, this will be seen when transport ministers meet on 22nd March this year to discuss the issue.

If the deal receives agreement, then the transatlantic air market will open up and passengers would benefit from airline competition driving prices down on long-haul flights eg. London to New York, and greater choice.

An estimated 26 million passengers more would be flying per year on transatlantic flights between the two largest aviation markets in the world if the deal gets the go-ahead.

However, concerns have been raised over the terms of the deal which appear to favour US airlines, by allowing them to fly between European airports. However, European carriers would not be granted the same privilage to fly domestically within the US.

Furthermore, the deal would mean increased flights which would be a detriment to the environment and all the schemes in place to help reduce CO2 emissions.


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T. Loaiza Editorial


08/03/2007


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