EU, US launch second round of ‘Open Skies’ talks

EU and US negotiators opened the next round of ‘Open Skies’ negotiations yesterday (15 May), with Europeans focusing on lowering investment hurdles and access restrictions for EU carriers in the US, moves heavily opposed by the US Congress.

The discussions build on an agreement that came into force at the end of March after four years of tense negotiations, allowing carriers to access any US city from any point in the EU and vice versa. 

But despite the positive developments in terms of allowing transatlantic passengers more choice and the possibility of cheaper tickets, several hurdles remain, notably the restrictions imposed by Congress on EU carriers investing in American airlines. 

The new pact has lifted restrictions on EU carriers buying majority stakes in US airlines but their voting rights remain capped at 25 percent. On the other hand, US airlines will be able to hold voting rights of up to 49 percent in European carriers. The Commission has already warned that this figure could be scaled back to 25 percent if there is no progress in the negotiations on further liberalisation. 

The UK is leading the critics of the earlier agreement, warning that it would exercise its right to terminate the ‘Open Skies’  accord if the US did not lower its barriers during the current talks. 

Indeed, if this second stage fails to produce results, elements of the first phase could be re-opened under a review scheduled for November 2010, the Commission said. 

US Special Envoy to the EU Boyden Gray said a lot of work would need to be put into persuading Congress not to block the deal amid fears of possible takeovers of US airlines. 

“I don’t think it’s impossible to do at all but it will take generating public support in the United States and that is do-able but is not easy,” Gray said. 

European airline operators also want the US to lower access restrictions for EU carriers, saying the current deal offered more advantages to US airlines operating within the EU. For example, US airlines can fly from New York to London, where they can pick up passengers and fly on to another European destination, whereas EU airlines are not able to operate domestic American routes. 

The US surprised EU negotiators earlier this week by saying it would seek a wider deal by pledging to drop access restrictions for airlines from more than 60 nations, AP reports. 

Read more with Euractiv

Commission targets 'rip-off' air ticket sites

One in three consumers using websites to book an airline ticket is still "confused" and being "misled and sometimes ripped off," lamented EU Consumer Commissioner Meglena Kuneva, threatening legal action if they fail to clean up their act.