Brussels, 25/03/2010 (Agence Europe) - On Thursday 25 March, EU and US delegations came to a preliminary agreement to finalise the second-stage Open Skies aviation agreement. The compromise found at the end of the eighth round of negotiations will allow reciprocal liberalisation of ownership and control of airline companies. In other words, the United States has agreed to waive restrictions to foreign investment, which will nonetheless require changes to be made in US legislation. The compromise, however, does not guarantee that air carriers have the right to cabotage (the possibility of operating between two points within the United States). The agreement also provides for full liberalisation of transatlantic air routes, authorises “wet leasing” (the hiring of an aircraft with crew) and strengthens regulatory cooperation and the harmonisation of security/safety norms and environmental standards. This should bring estimated profits of around €12 billion in terms of economic proceeds and growth of 26 million in passenger terms. After the fashion of the same kind of agreement sealed with Canada, the agreement provides for a package of measures that will enter into effect after reform of the US system for ownership and control of airlines, in exchange for clarification of European rules on noise pollution. The draft agreement is due to be presented by Commissioner Siim Kallas at the Transport Council in June.
Investment and control. The United States has agreed to liberalise its system of ownership and control of airlines (which currently stipulates that foreign ownership of US airlines is limited to 25% of voting rights) so that European investors may acquire a majority stake in US airlines. This liberalisation will be reciprocal (US investors being able to acquire European companies) but only once the reform has been approved by Congress. In exchange, and once the reform is adopted, the United States will gain access to the seventh freedom right for freight and passengers (possibility for the US carrier to operate flights between the member states of the EU and a third country without necessarily having to land in the United States). By way of example, an American transporter could operate a direct freight or passenger flight linking Frankfurt to Mexico. On the subject of the environment, the United States has gained clarification of the European rules relating to restrictions imposed on flights due to the noise pollution they cause. The EU will not amend its legislation currently in force but airports wishing to impose restrictions should notify the American party of restrictive measures envisaged, with 150 days' notice. On the other hand, the agreement would do away with the restrictions imposed on airlines from non-EU countries but under majority control by EU investors. Thus, an airline established in Jordan but belonging to a European carrier will have the same rights as Community carriers. European airlines will then also benefit from the seventh freedom right in aviation. A declaration attached to the text of the agreement puts both parties under an obligation to ensure coherence and to avoid duplication in their emissions trading systems (ETS), as well as to cooperation at the international level (within the ICAO framework) with regard to green technologies and the impact that aviation has on climate change. Other provisions of the agreement ensure that Europeans have: - access to the Fly America programme (EU airlines may sell their tickets to US government contractors and will benefit from partial access to the transport services of members of the US government); - mutual recognition of regulatory decisions; - cooperation between competition authorities; - respect of social rights and security cooperation (coordinated responses to new threats and consultation before the introduction of new safety measures). (A.By./transl.jl)