British Transport Official Seeks Further Opening Of Skies

British Transport Secretary Douglas Alexander yesterday emphasized shortcomings in the draft aviation agreement between the European Union and the United States, claiming the accord does not give enough access to European carriers seeking access into U.S. markets. The deal, set for a vote in the EU on March 22, requires unanimous support of all 27 EU countries.

"I do not take lightly the significant economic benefits that would flow from such an agreement," Alexander said of the draft agreement struck last week. "But given past discussions, I also recognize that the deal on the table falls short of providing the kind of access to the U.S. market that a number of EU carriers would like."

Alexander said the deal needs to set forth a level playing field for European and U.S. carriers, since "geographically and economically, the EU and U.S. represent broadly equivalent markets." For example, Alexander noted, a U.S. carrier would be permitted to fly into the U.K. then onward to another EU city like Frankfurt, but a European serving New York would not be permitted to fly onward to San Francisco, for example.

Although Alexander noted that Open Skies could remove some restrictions on routes and frequencies, "we need to go further, because it does nothing to deal with the issue of ownership and control." Alexander said the "ultimate prize" is an aviation market like that in the European Union, "with all restrictions on operations and investment lifted between participating countries."

Alexander, however, said he welcomed the ongoing efforts among negotiators and the improvements that have been made to a failed draft agreement in 2005. Alexander noted that the U.K. is "prepared to end the highly restrictive Bermuda II arrangements, as part of the right multilateral deal—to open our skies, and unlock real benefits for our airlines, our passengers and our economies."

Alexander said the "current political climate in the U.S." likely would not allow a "full, transatlantic, open aviation area in one step," but the U.K. has been "prepared to contemplate a phased approach."