[Article] Open Skies delay a set-back for Aer Lingus

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from here

Following the introduction of new security procedures at airports, there was another setback for Aer Lingus today in advance of its privatisation in September, with news that the publication of some of the decisions in the Open Skies agreement have been postponed.

Airline watchers say this delay is bad for Aer Lingus - expansion in the US is seen as a key part of its future success and this may put pressure on its potential share price as the airline privatises.

New long haul routes under new 'Open Skies' rules could create significant growth opportunities for the airline.

It's hoped 'Open Skies' will boost air travel and lower passenger fares. It would bring together the world's two largest aviation markets, Europe and the US -60% of global air traffic.

This would allow EU and US airlines to be more flexible with both their fares and timetables.

Under the present bilateral pacts, European airlines can fly to any US airport but only from airports located in their home country.

The main sticking point in 'Open Skies' is foreign ownership of US airlines.

The European Union wants Washington to relax foreign ownership rules that limit investments in US airlines to 25% of the capital, while the EU has a higher ceiling of 49%.

Meanwhile, Aer Lingus said earlier today that most of the missing baggage from its flights from Heathrow have now been returned to its owners.

Earlier the airline said it had seen a significant increase in the number of lost luggage items attributable to the security alert at Heathrow Airport after police last Thursday said they had foiled a plot to bomb airliners between Britain and the US.

300 items of luggage went missing on flights between Dublin, Cork and Shannon airports and Heathrow on Sunday while a similar number was lost on Monday. On a typical Sunday, Aer Lingus says it could have 50 reports of missing luggage.