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EU backing for 'open skies' deal EU backing for 'open skies' deal
(10 minutes later)
European Union (EU) transport ministers have unanimously backed an "open skies" aviation deal with the US aimed at liberalising transatlantic air travel.European Union (EU) transport ministers have unanimously backed an "open skies" aviation deal with the US aimed at liberalising transatlantic air travel.
The deal, which has been criticised by some UK airlines, eases restrictions on travel between Europe and the US.The deal, which has been criticised by some UK airlines, eases restrictions on travel between Europe and the US.
Supporters say open skies reform will boost competition between airlines and lead to lower air fares.Supporters say open skies reform will boost competition between airlines and lead to lower air fares.
The deal will also challenge British Airways' dominance at Heathrow airport, Europe's busiest hub.The deal will also challenge British Airways' dominance at Heathrow airport, Europe's busiest hub.
EU Transport Commissioner Jacques Barrot described the deal as one of "great political and economic importance." EU Transport Commissioner Jacques Barrot described the deal as one of "great political and economic importance".
It doesn't enable full liberalisation, it doesn't open up US markets so that European and British carriers can operate from one city to another Paul Charles, Virgin Atlantic
"The fact that everyone in the Council (of transport ministers) has been able to welcome the outcome is to be commended," he said."The fact that everyone in the Council (of transport ministers) has been able to welcome the outcome is to be commended," he said.
However, at Britain's request, EU ministers agreed to delay plans to implement the deal from October this year to March 2008.
The UK had raised concerns that open skies reform did not go far enough on US airline ownership rights.
The US had insisted on limiting any foreign company from owning more than 25% of a US airline's voting rights.
Tough choicesTough choices
The EU said consumers would see a total of up to $16bn (£8.1bn) in economic benefits as a result of the deal, as increased competition brings down air fares.The EU said consumers would see a total of up to $16bn (£8.1bn) in economic benefits as a result of the deal, as increased competition brings down air fares.
Under the 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.
Q&A: Open skies dealQ&A: Open skies deal
Under the 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.
But while US airlines would gain free access to European airports, EU carriers would not be allowed the same rights on domestic routes within the US.But while US airlines would gain free access to European airports, EU carriers would not be allowed the same rights on domestic routes within the US.
Paul Charles of Virgin Atlantic, said the deal did not go far enough.Paul Charles of Virgin Atlantic, said the deal did not go far enough.
"It doesn't enable full liberalisation, it doesn't open up US markets so that European and British carriers can operate from one city to another - that's where the British government should be pushing things today." "It doesn't enable full liberalisation, it doesn't open up US markets so that European and British carriers can operate from one city to another."
Negotiating the deal was a drawn-out, four-year process, and the breakthrough was only reached weeks ago.Negotiating the deal was a drawn-out, four-year process, and the breakthrough was only reached weeks ago.
Among the effects of the deal would be an increase in the number of airlines using London's busy Heathrow airport.Among the effects of the deal would be an increase in the number of airlines using London's busy Heathrow airport.
BA, Virgin, American Airlines and United Airlines currently dominate transatlantic services from Heathrow.BA, Virgin, American Airlines and United Airlines currently dominate transatlantic services from Heathrow.