Breakthrough in EU-US 'open skies' aviation talks[fr][de] 

EU and US trade negotiators on Friday (18 November 2005) reached an agreement  on the 'open skies' package to open up the transatlantic air transport industry. 

The deal, which still needs approval by the EU Council of ministers on 5 December, has been made conditional on the US loosening up rules currently preventing foreign companies from taking more than a 25% stake in US airlines. This could result in fresh cash input for an ailing US airline industry. A former US offer to raise the limits of foreign control to 49% did not satisfy EU demands.

British Airways said it was looking forward to an amendment in US ownership rules. "Right now, the US proposal falls short of the legislative solution that could have delivered a very real transformational change to the restrictive ownership and control rules," said Andrew Cahn, director of government and industry affairs at British Airways. He added he did not expect these to be adopted before March next year. "Once the final rule is published we look forward to assessing its commercial value," said Cahn.

A significant breakthrough in the agreement is the removal of a US requirement that forces EU airlines to operate transatlantic flights departing from their home countries only. Crucially for US companies, access to London's Heathrow airport, Europe's busiest, would be facilitated and current exclusivity deals lifted. At present, only British Airways, United Airlines, American Airlines and Virgin Atlantic are allowed to fly between Heathrow and the US.