Open Skies Is a Closed Book for UK Operators
Tuesday 13 March 2007
In a debate today on the EU-US open skies deal, the Conservative Party fully supported negotiations between the EU and the US on the basis that the air transport markets are opened fairly. Timothy Kirkhope MEP, Conservative Leader in the European Parliament, said that the 'open skies' air transport agreement did not achieve this. He stated that not only would the current proposals harm UK business, but they would have a detrimental impact on EU businesses as well.
"What is on the table now will give US companies a substantial share in our unregulated market, while EU companies will be left to fight for the scraps of the US regulated market. The Commission should be fighting for reciprocal agreements on ownership rights. In the current deal, US interests can own up to 49% of the voting stock of an EU airline, whereas EU interests can only own up to 25% voting stock of a US airline. Is this fair and open? In a word, No.
"According to the European Court of Justice, any transatlantic negotiations should honour Member State bi-lateral agreements (such as Bermuda II), which this agreement fails to do. The Commission, in seeking to harmonise its policy, has (again) not taken into account the differences that can exist between Member States.
"What we are calling for on this matter is action, not more dialogue. The Commission has championed the fact that the two sides have agreed to go back to the table in three months, but there are no firm commitments from the US to take action on this issue.
"In short, we are against this agreement, as it does not provide an open and fair market."
ENDS
