More freedom in the skies

A pretty important event just took place in Brussels,that could boost the number of air travellers from 50 to 76 million during the next 5 years over the Atlantic Ocean. Following 3 years of tough negotiations, Brussels and Washington have signed a preliminary agreement to liberalise the transatlantic skies, which account for almost 60% of the worldwide air traffic.

This “open sky” agreement will make it possible for European airlines to more easily access to the over protected American market. With such an agreement, for example, British Airways could connect London to Washington, and further continue to Toronto. And Northwest Airlines could fly from Minneapolis to Amsterdam, then proceed to Warsaw.

Still, a final agreement has to be reached on March 22, to be signed by all 27 member states. If ratified, such will be consequential in the history of air transport as it could build as much as 80 000 new employments on both sides of the Atlantic, and would mean for the consumers a global cost economy of Eu 12 billion.

Basically, it will become impossible for the U.S. Authorities to limit to 50%, as it is the case today, a simple participation (with no voting rights) to the equity of national airlines. And reciprocally for European states. Also, European companies will have access to U.S. National commercial programs such as Fly America (reserved to U.S. civil servants in Washington). And past, present or future bilateral agreements arranged between the U.S.A. and third party countries will be extended to holding airlines: With such clause, a company like Lufthansa, now owning Swiss, would benefit from air rights concluded between Switzerland and the U.S.A.

Now, let us hope that participating states will not succumb to the everlasting temptation of discreetly setting up side arrangements that would somehow reinstate local protections, an everlasting sport on both sides of the water…

Pierre de Fermor (with P. Avril).