"US election may hinder 'open skies'"

Wednesday, November 29, 2006

US election may hinder 'open skies' 
Ireland - RTE


Efforts to free up transatlantic air services have hit a stalemate with
recent US elections expected to make it more difficult to push through new
airline ownership laws needed to secure an 'open skies' deal, a US transport
official said today. 

'We are at a crossroads. The recent election in the US may well make it more
difficult to move forward with the proposed investment rule,' Paul Gretch,
director of office of international aviation at the US Department of
Transport told a conference in London. 

Democrats won control of the House and Senate on November 7 in elections,
which is expected to strengthen congressional opposition to moves to ease
restrictions on foreign investment in US airlines.
 
The European Commission reiterated it was up to the US to make the next move
to resolve a deadlock in negotiations on an 'open skies' deal between Europe
and the US. 

'At the moment the ball is very much in the US court. We recognise
politically it is a very sensitive process,' European Commission Air
Transport Directorate David Batchelor told The Future of Air Transport
conference in London. 

Negotiations between the European Commission and Washington have stalled.
Brussels is waiting for the US to back rules that would ease restrictions on
foreign control of US carriers, which US lawmakers have opposed. 

The Bush administration in August delayed a plan to ease limits on foreign
investment in US airlines under pressure from Congress, a decision which
jeopardised talks with Europe on removing competitive barriers to
transatlantic air service.

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