Günter Endres/LONDON

Court proceedings begun at the European Court of Justice in Luxembourg last week could lead to a fundamental change in Europe's negotiating position on international air service agreements.

The European Commission is suing eight European Union countries whose individual bilateral agreements, particularly with the USA, it contends are discriminatory and distort the single European market.

The Commission is hoping that it will be given a mandate from member states to negotiate international air service agreements and other aviation matters on behalf of the whole of the EU. The move would also advance its plan to engage the USA in detailed discussions for the formation of a transatlantic common aviation area which would foster international airline consolidation and which is supported by the Association of European Airlines.

The EC argues that, under present US open skies deals, the US market remains closed to European airlines, while US carriers have been given virtually unlimited access to Europe. Another sticking point is the continued refusal by the US authorities to allow foreign ownership of its airlines.

However, the eight countries - Austria, Belgium, Denmark, Finland, Germany, Luxembourg, Sweden and the UK (the UK has only concluded a regional open skies agreement with the USA) refuse to be bullied into submission. In a well-co-ordinated response, they contend that they have every right to negotiate bilaterally to secure all possible benefits for their national carriers. They also dispute the EC's assertion that their agreements with the USA discriminate against other EU states.

While the USA is keeping a close watch on proceedings in Luxembourg, US transportation secretary Norman Mineta has taken some of the sting out of the transatlantic battle by stating in a speech to the Global Air & Space 2001 forum in Arlington, Virginia, that the USA is ready to negotiate an open skies agreement with the European Union, once the Commission receives "a broad aviation negotiating mandate from its member states".

The EC's head of economic regulation and air transport agreements, Frederik Sorensen, believes the court will come down in favour of the Commission. "The thought is that the Commission will win, but the process thereafter could be lengthy," Sorensen said recently. The court ruling is due in July.

Source: Flight International