European negotiators are increasingly confident that a newly installed team at the US Department of Transportation will consider contentious ownership issues and finalise a liberal open skies deal by year-end.
Talks on concluding an air services agreement between the USA and the European Union broke down in the middle of last year as politicians on both sides focused on election campaigns. The USA had been pressing for a quick deal replacing national bilaterals with one EU-wide deal. But Europe rejected it, saying it did little to open the US market. EU negotiators say they have received "positive signals" from the DoT negotiating team, hinting further liberalisation will be acceptable to a post-election Congress.
US lawmakers have been lobbied by airline groups to move on the issue of foreign ownership, in a bid to stimulate the market. The US Business Travel Coalition last week called for a more deregulated industry, amid fears of "major network airline failures" in 2005.
A senior European airline source close to the negotiations says the USA has kicked around tentative proposals that include restrictions on route networks and investment activities. Senior European airline sources say any proposal that breaches the 50% "dam" would be welcome.
Source: Flight International
