The proposed changes to a 2008 EU regulation deal broadly with the hours pilots and flight crews can work. The results cap three years of studies by the European Aviation Safety Agency (EASA), which was under pressure from struggling airlines for flexibility and trade unions for tougher limits on duty hours.

EADS and BAE are in talks to create what would be the world's largest defence company. But their efforts have become snagged on differences over control between France and Germany while there are also political concerns about jobs.

German Defence Minister Thomas de Maiziere joined France in pressing the companies to seek an extension of a 10 October deadline set by the UK to reach a deal in order to give politicians more room to bridge differences.

Kallas’ ‘New horizons for EU aviation’ proposals come as Europe’s passenger airlines are struggling amid an economic slump, fierce price competition and skyrocketing jet fuel prices.

“The European aviation industry has been hard hit by recession and if that was not enough, global aviation is changing rapidly,” said Kallas, who is in charge of transport at the European Commission. “Half of the world’s new traffic during the 20 years will to, from or within the Asia-Pacific region.”

The EU's claim came one day after the US Trade Representative's office said it had complied with a ruling by a World Trade Organisation dispute panel that found Boeing had benefited from illegal payments. The United States had until 23 September to comply.

"We had expected that the US would have finally complied in good faith with its international commitments and would have abided by the WTO rulings that clearly condemned US subsidies to Boeing", EU Trade Commissioner Karel De Gucht said in a statement.

But for now, they are staying focused on the bottom line. “We can imagine a world [by 2030] where the majority of cars will be plugged in, and some form of hybridisation will be the dominant technology,” Ayoul Grouvel, head of Peugeot electric vehicles projects, told EurActiv.

Increased demand from transport, which currently accounts for one-fifth of global final energy consumption, is expected to make up all future growth in oil use worldwide, the IEA predicted in a two reports published on Wednesday (19 September).

The reports did, however, identify a “massive potential” to reduce demand for transport fuel even if the number of cars were to double by 2050.

“I think the European Commission should design a series of measures which can promote the vision they have for a big growth of electric cars,” Ayoul Grouvel said in an exclusive interview with EurActiv.

“It could be authorisation for a new tax level, or a more general electric vehicle policy for Europe,” he added, noting that industry subsidies currently operated unevenly across the EU.

“I think there’s a lot of work to be done,” he said.

He was speaking as the European Commission issued a transport and technology communication calling for EU governments to “break away from conventional thinking” in the paradigm shift to alternative propulsion systems, and embrace “new financial instruments to increase the leverage of public budgets”.