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[Article] Call for EU to give direction on Open Skies

10-01-2007 6:11am

#1

Victor

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http://www.rte.ie/business/2007/0109/openskies.html

Call for EU to give direction on Open Skies
January 09, 2007 17:45

The EU must tell the US how to proceed with a stalled negotiation on an open skies agreement after Washington scrapped a plan to open its airlines to more foreign investment, a senior US negotiator said today.

On the eve of talks with EU Commission officials, John Byerly said the foreign investment plans - a key EU demand - would not be resurrected due to vigorous opposition from both main US political parties and the country's airline industry.

He said the United States was open to adding possible changes to the deal, but would not be drawn on where Washington could compromise.

Last month, the US halted talks over what appears to be an unwillingness to loosen their restrictions on foreign ownership of US-based airlines.

Americans can buy up to 49% of European airlines, but Europeans can buy only a maximum of 25% of a US carrier.

The United States and the EU tentatively penned an 'open skies' deal in November 2005 that aimed to liberalise the transatlantic aviation market and replace bilateral agreements between Washington and some EU countries.

Byerly said Washington was willing to sign the deal as it stood, but noted the EU would not do so without changes to the US law that restricts foreign investment in U.S. airlines.

Aer Lingus, which takes delivery of two new Airbus planes in March and wants to expand its flight schedule to North America, will be waiting to see the outcome when the European Commission meets the US side tomorrow and on Thursday.

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