The French Government, current holder of the presidency of the European Union (EU), is pushing for Brussels to be granted permission to negotiate with the US on traffic rights. Paris wants the proposal to be put to the council of ministers by the end of the year.

The UK and France have in the past held out against granting Brussels these powers, which are seen as a necessary precursor to discussions on a transatlantic common aviation area (TCAA). This was largely out of a desire to protect the key London Heathrow and Paris Charles de Gaulle hubs.

There appears to have been an about turn in Paris at least. London, however, is still wary of letting Brussels decide the future of its Heathrow trump card, Europe's key transatlantic gateway. The UK position was described by aviation consultant Rigas Doganis as "completely short sighted".

There have been informal talks between Brussels and Washington on the subject of a TCAA in recent months, including discussions with the US Department of Defense, which is worried that its ability to requisition US aircraft to ferry US troops around the world would be put at risk.

Speaking at a recent forum on open skies in London, Delta Air Lines general manager finance and planning for the Atlantic region, David Bishko, noted that, "the further impact of open skies will be marginal," given the fact that most EU states already have agreements with the US in place. Bishko noted, however, that "there is still one large hole - London."

David Batchelor, head of international aviation policy at the UK's civil aviation authority, says under the current arrangement, "the EU is limited to bilateral corridors. US carriers have a much greater degree of flexibility." Competition in the US is being steadily reduced, he says, which may make foreign competiton more palatible to the authorities in Washington.

One option being discussed is bringing aviation within the framework of the World Trade Organisation (WTO). However, Batchelor believes "this is clearly a long way ahead." If the French run out of time on TCAA - its presidency is due to run out at the end of the year - new incumbant Sweden is said to be ready to pick up the baton.

Source: Airline Business