US-Europe officials fail to reach deal to boost air travel
The US and the European Union will miss a June deadline on a transatlantic aviation deal that could boost air travel and lower passenger rates, according to officials.
It was hoped the two entities could reach a deal before the end of March to cope with heavier summer traffic. A so-called “open skies” agreement would allow US and European airlines to fly virtually wherever they wanted and make changes.
“Authorities on both sides say the deal is badly needed,” said the Associated Press.
Under the present agreement, European airlines can only fly to the US from airports based in their own countries.
Because of this so-called nationality clause, European airlines risk losing US landing rights if they merge. That has helped lead to fragmentation and inefficiency in the European market, according to aviation officials.
Current US restrictions that allow only 25% of all voting stock to be held by foreigners are one sticking point. Europeans are reportedly waiting to see whether US rules in that area will change.
Both sides sniped at each other.
John Byerly, US Deputy Assistant Secretary for Transportation Affairs, blamed the Europeans for the stalemate. He criticized the number of airlines that an use London Heathrow as “despicable” and a “30-year abomination,” reporters said.
The latest schedule calls for talks this summer and a hoped-for agreement by the end of the year.
Report by David Wilkening
David
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