EU-US Open Skies – second stage negotiations

15. july 2010 22:50 | Regulations

by Tom Jules

The EU-US Open Skies agreement is an air transportation agreement between the European Union and the United States to allow for more open air travel between the two. In the past, airlines have been restricted in flying to and from the European Union and the United States. But, under the EU-US Open Skies airlines from the European Union and the United States are allowed to fly between any points in the EU and the US. European airlines believe they got the short end of the stick as US airlines are allowed to “cabotage” in the EU, while airlines in the EU are not allowed to do that in the US.

 


Cabotage rights are the rights of an airline from one country to operate domestic flights in another country. For example, airlines from the United States are allowed to fly to London, England, pick up passengers and transport them to Manchester, England, while, according to the EU-US Open Skies, an airline from the European Union cannot arrive in New York, pick up passengers and transport them to Los Angeles. This has not gone well with European airlines.

The EU-US Open Skies first stage agreement became effective March 30, 2008 and is thought to be one of the most important agreement that has been signed in the air service industry.

 

Second stage negotiation

Eight rounds of negotiation for the second stage Open Skies agreement was needed before the preliminary agreement was signed in end of March, 2010. The new agreement is built largely on the first stage agreement that was signed in March of 2008. The main focus of the Open Skies agreement is to increase co-operation, decrease barriers and synchronize the regulatory environment between the European Union and the United states.

The main issues that the second stage agreement is to solve are:

-    Reduce red tape and duplication of researches by recognition of each other´s regulations.

-   Consolidated security measures by promoting maximum reliance on each other´s security actions.

-   Further opening each other airspaces and allow for access of each other airlines.

-   Co-operation between the European Union and the United States on environmental issues. That will ensure compatability and eliminate duplication between many environmental issues/ actions such as the trading schemes in the EU and the US. A detailed plan wasn´t made, rather a broad framework was agreed. Noise reduction, more efficient fuel systems and air traffic management was also addressed.

-   Consolidate legal right of aviation employees and standardize labour quality.

 

The European Union is hoping that the United States will ease its regulation on foreign ownership of airlines in the US. Currently, companies from the EU are only allowed 25 percent ownership in US airlines, while US companies can hold a 49 percent ownership in airlines from the EU. 

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