Julian Moxon/paris
France and the USA have finally signed a bilateral air transport accord, opening the way for codesharing alliances between French and US carriers, although it is short of the open skies agreement originally sought by the USA.
The deal provides for a five year transition to fully liberalised open skies, a compromise between the three years demanded by the USAand nine requested by France.
Fifth freedom beyond rights are limited, although a US negotiator says that the trend towards codesharing alliances makes such beyond right freedoms "increasingly unnecessary".
Increased liberalisation in the cargo market, however, allows for immediate unlimited services between France and the USA as well as extensive fifth freedom rights. This has been welcomed as a "significant step" by FedEx, which is now free to develop and expand its $250 million hub at Paris Charles de Gaulle airport.
The bilateral allows for a 40% increase in services by French and US carriers in the period leading up to 2002, by which time 68 weekly flights from each side of the Atlantic will have been added to the 148 now permitted. During the transition period, US airlines will be able to add nine daily services to the current cap of 21, to bring them to the same level as French airlines.
After 2002, carriers will be free to increase capacity, but will have to abide by the terms of the agreement providing for "high level government arbitration" in cases of perceived unfair competition.
The immediate benefactor is Air France, which promises "vigorous growth" in services to the USA through its codesharing alliances with Delta Air Lines and Continental Airlines. British Airways' French subsidiary Air Liberté will also move on its planned codesharing agreement with American Airlines.
The deal provides initially for three codesharing partnerships with third countries, but with restrictions being dropped by the year 2002.
Source: Flight International
