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Europe Daily Bulletin No. 8714
Contents Publication in full By article 19 / 33
GENERAL NEWS / (eu) eu/united states/open skies

Talks continue on Tuesday

Brussels, 27/05/2004 (Agence Europe) - The US administration forwarded part of its proposals to the European Commission last Friday with a view to guaranteeing European airlines better access to the US market. Europeans expect the rest of the American proposals by Tuesday of next week when negotiators Michel Ayral, Director General at the DG Transport and Energy, and John Byerly, US Deputy Under-Secretary for Transport, will pursue discussion during a video conference. It is hoped an air agreement will be concluded by the EU/US Summit of 26 June.

During the last round of talks, mid-May, Europeans did not return from Washington totally satisfied but were sufficiently optimistic about the possibility of reaching an agreement by the Summit (EUROPE of 18 May, p;11). Since then, the Commission has been expecting an American "counter-proposal" aimed at guaranteeing better access to European airlines, after Washington had refused European proposals (including cabotage). According to sources familiar with the issue, the Americans are said to have proposed an alternative to "co-chairing": a European airline should have the right to conclude a contract with an American airline in order, for example, to have one of its planes to ensure a link (transport of goods or passengers) on US territory. Even if, in this hypothesis, the European airline does not sell its "own" seats to its customers (which is the case in co-chairing), this would give it the possibility to have its customers travel over American territory in the context of a transatlantic flight. Europeans are still waiting for the American proposals on "wet-leasing" and on the commitments that they are ready to take to liberalise their market more in the context of a second phase of negotiations. Once all these elements are in hand, the Commission will be able to judge the American counter-proposal as a whole, with a view to the video-conference on Tuesday. The Transport Council on 10 and 11 June will be informed. If the results are finally to the satisfaction of Member States and the Commission, the EU and the United States could sign an agreement by 26 June.

According to The Financial Times, leaders of the European aviation industry are seeking an urgent meeting with Loyola de Palacio, the European Transport Commissioner. Several organisations complain in a joint letter that the Commission failed to inform them about crucial recent developments in negotiations. The Association of European Airlines (AEA) is said to be criticising the outcome of negotiations. According to sources familiar with the dossier, the Commission organised several meetings with the sector throughout the talks (the last on 27 May), in order to keep it constantly informed.

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