Brussels, 20/01/2010 (Agence Europe) - Talks on the second stage of the “Open Skies” agreement aimed at liberalising air transport between the United States and the EU are making progress. The two delegations will meet for the second time this year on 15 and 17 February in Madrid. Administrative issues, cooperation with a view to reducing polluting emissions from aviation, as well as safety and security cooperation have already been settled. The most difficult issues, however, remain outstanding. These include ownership (growth of investment), traffic rights and the environment (restrictions unilaterally imposed by some airports on night flights) (EUROPE 9969 and 9910).
Some progress was made during a recent meeting in Washington on 11, 12 and 13 January, when the US administration demonstrated a certain amount of flexibility regarding review of US law on investment, without however committing itself to the date put forward by the European side (2012). The EU, for its part, may envisage reviewing the legislation in question concerning noise, which has long been criticised by the United States, and use to effect the provisions set out in the 2002 directive on noise pollution (authorising introduction of restrictions on a case by case basis but calling for introduction to be preceded by an exact assessment in line with the balanced ICAO approach, and for partners to be consulted). Review of this text is currently foreseen at the end of 2010 and early 2011. It would seem difficult to backpedal and withdraw provisions negotiated for the first stage of the agreement (whereby, failing an agreement during negotiation of the second stage before the buffer date of November this year, parties may under certain conditions renounce what has already been negotiated and agreed). It remains to be seen whether negotiators will reach significant results, especially by negotiating a complete and reciprocal opening of restrictions imposed on investment (and therefore the possibility of reciprocal purchase of airlines). European airlines, which are keen on great investment freedom, are not opposed to the arrival of American capital in Europe. However, according to the AEA (Association of European Airlines), it is first and foremost the United States that has to move further by bringing the level of investment authorised into line with that existing at European level. It should be noted that US law, whose amendment requires endorsement, puts a ceiling on foreign investment at 25% of shares with voting rights, while European legislation authorises acquisition of 49.9% of such shares. According to an AEA spokesman, if both sides were at 50% investment, then it would be possible to speak of total opening. At any rate, the future agreement is expected to provide for administrative cooperation, a cooperation clause on the reduction of polluting emissions, and a system of cooperation on security, safety and traffic control. The EU will also seek to negotiate wet leasing of aircraft (i.e. with the crews) and to obtain more flexible conditions of access to the Fly America programme (which governs VIP flights funded by the US government). Americans believe it is a matter of gaining the “seventh freedom” which guarantees the possibility of operating cargo and passenger flights to third countries without having to begin the flight on American soil. (A.By./transl.jl)