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EU backing for 'open skies' deal | EU backing for 'open skies' deal |
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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 | 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. | 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 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. | The US had insisted on limiting any foreign company from owning more than 25% of a US airline's voting rights. |
Tough choices | Tough 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. |
Q&A: Open skies deal | Q&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. | 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. |
HAVE YOUR SAY This is a poor decision for the UK, our airlines gain nothing in America Ray Cork, Derby Send us your comments | |
"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." | "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. |