Repercussions of the failed EU-US aviation liberalisation talks now include legal action against some European Union (EU) states to compel them to renounce their bilateral pacts with the USA.
The European Commission (EC) has decided to bring a case against The Netherlands and also started proceedings to bring France, Italy and Portugal in line, and sent formal warnings to eight other countries, including the UK and Germany, over their failure to comply with the 2002 ruling by the European Court of Justice (ECJ) that outlawed nationality clauses in bilaterals.
Although the action is being taken against the member states, the aim is clearly to put pressure on the USA after open skies talks between Brussels and Washington broke down in June. Key member states, notably the UK, rejected the idea of a limited deal that would have opened up London Heathrow to US carriers with only limited concessions in return. However, observers point out that Brussels must be careful not to upset the member states as it needs their co-operation to secure a deal.
The EU-US talks have not been helped by the distraction of the looming US elections, which has meant that Washington has been less than enthusiastic in going for a comprehensive deal.
Some European states, notably The Netherlands, were in favour of a more limited deal and the leading US negotiator, the State Department's John Byerly, says: "My personal view is that the opposition of some member states and airlines to a first-step agreement had little to do with the sufficiency of the US offer and much more to do with relationships within Europe itself." Byerly told a Washington audience recently that a deal was scuttled by "individual carriers' private opposition to a first-step deal - one that works to their commercial disadvantage". But Byerly says that if individual member "states come knocking, we will definitely answer the door".
The actions would have no immediate impact because the bilaterals have a notice period of 12 months, but the US Mission to the EU warned: "Termination of those agreements would call into question the legal basis for the airline alliances that have brought so many benefits to the transatlantic aviation marketplace." n
DAVID FIELD WASHINGTON AND COLIN BAKER LONDON
Source: Airline Business
