Negotiations on cabotage and ownership rights form phase two of treaty, but are likely to prove difficult to agree
European transport ministers meeting in Brussels last week agreed to support the toughly negotiated open skies airline treaty with the USA, but the UK is warning that if the timetable for phase two of the liberalisation process is not met by the end of 2010, current restrictions on US carriers could be reimposed.
UK airlines have welcomed the move, and secretary of state for transport Douglas Alexander says the deal is a victory for consumers, but adds: "We have secured, in effect, now not simply a commitment from the Americans to talk, but an obligation on the Americans to act in relation to stage two."
The transport minister is demanding that the USA reduces its restrictions on foreign ownership of US carriers and allows European airlines to fly routes in the USA.
The agreement "means that the Commission will engage with the US immediately, and second stage negotiations will begin by the end of the year", he adds.
Douglas's threat to scupper the accord in 2010 if there is no agreement on the second phase of open skies is serious.
"I hope very much that this will not be necessary," he says. "But this sends a very clear signal to the USA that we are serious about making early progress to a second-stage deal."
Negotiations for the second part of the accord are expected to prove difficult, as the US administration, no matter who holds the balance of power in the White House and Congress, will be loath to relent on its position over cabotage and ownership rights.
Source: Flight International
