In the run up to a meeting of European transport ministers at the end of March which is expected to produce the framework for a transatlantic open skies deal, Brussels has commissioned a report showing the benefits of such an agreement.
Ministers are expected to hand the European Commission (EC) a mandate to negotiate a deal with authorities in Washington when they meet in Athens on 29 March, in the wake of a European Court ruling that has declared illegal the nationality clauses within existing bilaterals.
The report from the Washington-based Brattle Group argues that these agreements are anti-competitive and says there will be substantial economic benefits, including:
an extra 11 million passengers per year, a jump of 24%; a boost to intra-European traffic of 35.7 million passengers, up 14%; the creation of $5.2 billion in consumer benefits through lower fares and increased travel; an increase in economic output in related industries by $3.6 billion to $8.1 billion.Dorothy Robyn, senior consultant at The Brattle Group, says: "It is time to listen to the voice of efficiency…passengers would benefit from lower fares and expanded service options. Airlines would gain as well." With many transatlantic carriers in economic crisis, she adds that the agreement should be "a no-brainer".
COLIN BAKER LONDON
Source: Airline Business
