airmail
31st Jan 2002, 20:03
Taken from the BBC News Website
A series of air travel liberalisation agreements between individual European Union countries and the US are illegal, according to a preliminary ruling from the most senior advisor to the European Court of Justice (ECJ).
If followed by the full court later this year, the ruling would reinforce the European Commission's right to negotiate 'open skies' pacts with non-EU countries on behalf of all 15 EU governments.
The Commission argues that this would help EU airlines to strike a better deal, while also accelerating much-needed consolidation within the European air travel sector.
The ECJ follows preliminary rulings in 80% of cases, a spokeswoman for the court said.
Five-year court battle
Eight EU countries - Austria, Belgium, Denmark, Finland, Germany, Luxembourg, Sweden and the UK - have signed open skies agreements or other one-to-one aviation deals with the US.
The arrangements give these countries' airlines lucrative access to US airports, and guarantee landing rights in Europe for some US carriers in return.
In 1998, the Commission challenged these pacts in court, claiming that they put European airlines which have not negotiated similar agreements at an unfair disadvantage.
The Commission also argued that by limiting European airlines' right to operate in EU countries other than their own, the bilateral pacts break EU laws outlawing discrimination against foreign firms.
Uncertain outcome
The future of these agreements in the event of a final ruling in favour of the Commission is unclear, but changes are highly likely.
"If (the preliminary ruling) is confirmed, we will need to review the bilaterals in a community perspective," said a Commission spokesman on Thursday.
The Commission is also expected to use a final judgment in its favour to push for the removal of legal barriers preventing European airlines from offering flights to the US from EU countries other than their own.
This would step up competition in the European air travel market.
Many of the bilateral deals specify that reciprocal landing rights apply only to carriers based in the two signatory countries.
Earlier this month, open skies talks between the UK and the US were shelved after British Airways and American Airlines, the two main airlines concerned, said conditions imposed by the US Department of Transport were too tough.
A series of air travel liberalisation agreements between individual European Union countries and the US are illegal, according to a preliminary ruling from the most senior advisor to the European Court of Justice (ECJ).
If followed by the full court later this year, the ruling would reinforce the European Commission's right to negotiate 'open skies' pacts with non-EU countries on behalf of all 15 EU governments.
The Commission argues that this would help EU airlines to strike a better deal, while also accelerating much-needed consolidation within the European air travel sector.
The ECJ follows preliminary rulings in 80% of cases, a spokeswoman for the court said.
Five-year court battle
Eight EU countries - Austria, Belgium, Denmark, Finland, Germany, Luxembourg, Sweden and the UK - have signed open skies agreements or other one-to-one aviation deals with the US.
The arrangements give these countries' airlines lucrative access to US airports, and guarantee landing rights in Europe for some US carriers in return.
In 1998, the Commission challenged these pacts in court, claiming that they put European airlines which have not negotiated similar agreements at an unfair disadvantage.
The Commission also argued that by limiting European airlines' right to operate in EU countries other than their own, the bilateral pacts break EU laws outlawing discrimination against foreign firms.
Uncertain outcome
The future of these agreements in the event of a final ruling in favour of the Commission is unclear, but changes are highly likely.
"If (the preliminary ruling) is confirmed, we will need to review the bilaterals in a community perspective," said a Commission spokesman on Thursday.
The Commission is also expected to use a final judgment in its favour to push for the removal of legal barriers preventing European airlines from offering flights to the US from EU countries other than their own.
This would step up competition in the European air travel market.
Many of the bilateral deals specify that reciprocal landing rights apply only to carriers based in the two signatory countries.
Earlier this month, open skies talks between the UK and the US were shelved after British Airways and American Airlines, the two main airlines concerned, said conditions imposed by the US Department of Transport were too tough.