The USA is eager to pursue more breakthroughs during the second stage of Open Skies negotiations with the European Union, US deputy assistant secretary of state for transportation affairs John Byerly told the International Aviation Club in Washington DC in late April
There is no predetermined outcome to the second-stage negotiations. Rather, they will address areas of "priority interest" to one or both sides, such as further liberalisation of traffic rights, additional foreign investment opportunities, and the effect of environmental measures and infrastructure constraints on the exercise of traffic rights.
This doesn't mean that a second-stage agreement will contain provisions on each of these issues, but we will discuss them all. The pact speaks of "developing the next stage expeditiously" and calls for a review of the progress we've made not later than 18 months after talks begin.
Some in Europe have suggested that the USA will have no reason, no incentive to pursue second-stage negotiations. Nothing, in my view, could be further from the truth. It is accurate to say that the USA has achieved the goal of traditional Open Skies with all the member states of the EU, but that's a huge step forward, not some clever foxtrot to the side. It would be mistaken for our European friends and, more important, tragic for American stakeholders, to view the agreement as all that our country would want to achieve.
Let me explain why. International aviation is in a period of extraordinary change. To those who think that the demise of Pan Am and TWA the emergence of alliances like Star, SkyTeam, and oneworld the explosive growth of aviation in India and China and the appearance of players like Emirates, JetBlue Airways, and Ryanair are enough excitement for a generation, I say, we haven't seen anything yet. The inexorable economic forces that are creating a global economy won't bypass civil aviation. Carriers that are prepared for change - and postured to take advantage of what's new, what's challenging, and what was previously unthinkable - will be the winners. And countries that create an environment in which flexibility, creativity, and entrepreneurial endeavour are rewarded will stand a much better chance of seeing their airlines and economies thrive. For example, compare Singapore Airlines with some other former leading Asian carriers study the contrasting histories of LAN Chile and Varig look at what a change in government policy has meant for aviation in India or witness how others in the Arab world are now trying to catch up with Dubai.
These observations don't mean that the traditional concerns of aviation are irrelevant. Far from it. We must continue to care about safety, about the vital role that civil aviation plays in the USA's national defence, and about security. Indeed, after 11 September 2001, we have no choice but to think long and hard about the homeland security dimension of international as well as domestic air service. Our goal in second-stage negotiations should be to guard these vital interests while eliminating unnecessary burdens on airlines, passengers, and shippers.
Winners and losers
As in any economic sector, there will be winners and losers. That's a necessary consequence of the model of vigorous competition that we endorse and that consumers rightfully demand. Will we in America ensure that our airlines, together with their employees and the communities they serve, have the best possible chance to thrive in the global aviation markets of the future? This is the question that will be posed in the second-stage of negotiations.
I won't presume to suggest at this time where to strike the balance on any particular issue, whether it's seventh freedoms, investment, slots, night curfews, or the complexities of Fly America. What's clear, however, is that we will do ourselves a disservice if we do not fairly assess decades-old policies to determine if they serve our long-term interests.
The second-stage negotiations will challenge us to work hard across the executive and legislative branches, between government and industry, and across the dividing lines of management and labour to analyse, evaluate, and recalibrate. If we undertake this effort in good faith, in the same spirit of teamwork that made the first-stage agreement with the EU possible, we can secure for America's civil aviation sector, for our airlines, our workers, and our airports and communities, the best possible prospects for the future.
Source: Airline Business
