|
|
|
EU-US open skies deal finally wrapped up
By Volker K. Thomalla
The cost of flights between the USA and the European Union will very likely come under pressure from 2008. The reason for this is the new air travel deal between the United States and the EU, which is intended to create more competition on transatlantic flights and should be signed in the next few weeks. The sought-after competition will come, as from 1 January EU airlines will be allowed to fly to US airports from any airport in the European Union. Conversely, US airlines will now be at liberty to carry passengers from the USA to any airport in the EU. On top of this, they will be allowed to continue their flights to other airports within the EU and to pick up new passengers at the intermediate stop. But European airlines will not be able to do the same in the USA. The US Congress has to approve the open skies agreement, and this it would not do if the American airlines had not been granted special rights.
When it comes to ownership rights, the Europeans have once again lost out. Whereas American companies are allowed to acquire up to 49 percent of the shares of European airlines, the Americans were not prepared to allow foreign companies to own more than 25% of a US airline’s voting rights. This is far from equality. Despite the imbalance, the Europeans do not feel hard done by, even though this is precisely the impression which comes to mind. The EU Commission, which was leading the negotiations, is assuming that 80,000 new jobs will be created in Europe as a result of the extra traffic generated. Moreover, it is argued, the tougher competition will lead to lower prices, which will benefit the consumer.
The American airlines are not the only ones to welcome the new deal, but the German Airports Association (ADV) is also pleased with the outcome of the negotiations. “The annual benefit to Germany is of the order of two billion euros,” calculates Ralph Beisel, Chief Executive Director of the ADV. According to the ADV, the USA was by far the most important market in intercontinental traffic for the German airports, with an annual passenger volume of 4.5 million. Beisel is therefore calling for the agreement to be ratified and implemented quickly. The European airlines have either been guarded in their comments on the agreement or else they have not commented at all, as they do not want to alienate the US authorities.
Social Democrat MEP and transport expert Ulrich Stockmann welcomed the deal, but was a lot less euphoric about it than the ADV. His comments were pragmatic: “Better this solution than none. Naturally this compromise also has its downside. If we don’t implement this agreement, we will not be able to negotiate a better deal in a few years’ time either.” Sometimes, it seems to me, it is better to be grateful for the thin sparrow in one’s hand than to hanker after the fat pigeon on the roof.
From FLUG REVUE 5/2007
|
|
|
|
|