EU transport ministers approve 'open-skies' deal with US

Mumbai: European Union transport ministers have endorsed a landmark agreement with the United States that will throw open transatlantic air travel to more competition and thereby reduce fares substantially.

The "open-skies" pact will allow European airlines to fly from anywhere in the European Union to any point in the US without restrictions on pricing and capacity and vice versa.

"I am delighted to have piloted this agreement to its destination with all passengers still on board," EU transport minister Jacques Barrot said.

German transport minister Wolfgang Tiefensee, who chaired the talks, hailed it as a "breakthrough" that would give a boost to transatlantic relations and benefit consumers and airlines.
But the implementation of the pact will come five months later, as requested by Britain, and will take effect on March 30, 2008 instead of October this year. The EU countries will also be able to ask to "suspend" the deal from the end of 2009 if they are unhappy with progress in future transatlantic air negotiations.
These concessions are aimed at addressing concern from the U.K. that the deal could hurt British Airways Plc.

British Airways and Virgin Atlantic - are allowed to fly routes between the US and Heathrow, which is the world's busiest airport by passenger numbers.