US, EU negotiators agree to open skies without Heathrow carve-out
Air Transport World.
Monday November 21, 2005
Negotiators for the EU and US, after five days of talks in Washington, achieved a tentative air services agreement that will provide airlines from the US and EU member states open access to each other's markets "with freedom of pricing and unlimited rights to fly beyond the EU and US to points in third countries," according to a joint statement (see text below).If approved by both sides, the agreement could take effect with the 2006 IATA winter season, which traditionally begins in late October.
The accord, which must pass muster with all 25 members of the EU Council of Transport Ministers--who rejected an earlier agreement in 2003--would open London Heathrow to all US international airlines as well as to all European carriers wishing to fly between the US and London, subject to acquiring slots at the airport. Increased access to Heathrow has been viewed as a key stumbling block to reaching an all-inclusive Transatlantic Open Aviation Area. Under the Bermuda 2 agreement, only two US and two UK airlines are permitted to fly between Heathrow and the US.
"As soon as the agreement applies, every US airline would be legally authorized to fly from any point in the United States to Heathrow [and] to any airport in Europe. By the same measure, every European carrier could fly from Heathrow or any other European airport to any airport in the US. They would have to obtain slots and facilities to do so but the legal prohibitions that exist today would no longer exist," US Deputy Assistant Secretary of State for Transportation Affairs John Byerly told reporters during a conference call.
"There is no carve-out for Heathrow," European Commission Director-Air Transport Daniel Calleja stated. He also emphasized that "when the Council makes its decision, it will take into account the outcome of the rulemaking process recently initiated in the US Dept. of Transportation concerning increasing the opportunities for foreign citizens to invest in and participate in management of US air carriers" (ATWOnline, Nov. 3).
The Council of Transport Ministers is expected to discuss the agreement at its Dec. 6 meeting but is not expected to take a vote until the outcome of DOT's rulemaking is known. Comments on the NPRM are due to DOT Jan. 6 and the department could make its decision final in February.
While Calleja acknowledged that UK opposition could torpedo the agreement, he told reporters: "If the evaluation [by the Council] of the outcome of the procedure in the US is positive, I think there will be a positive decision from the Council of Ministers."
Under Friday's agreement, the US and EU committed to a timetable for another round of talks. Within 60 days of the accord taking effect, "we would commence negotiations for a second-stage agreement," Byerly said.
"This is a first step and we look forward to continuing the process, Calleja stated. "We think we share on both sides the goal of continuing open access to markets to maximize the benefits for the consumers, for the airlines, so what we have agreed is there will be a pre-agenda for the second stage and on the EU side an expectation that we would seek further liberalization and also further cooperation in issues like competition, security."
by Perry Flint
(Sounds like a free for all, dog eat dog guys. Let's have some competition!!).