Open Skies Treaty Dead, notes Israel Rafalovich

Brussels

The negotiations between the United States and the European Union, on the liberalisation of air traffic between the two continents, was killed when the United States withdrew it plan, after stiff facing opposition in the American Congress to give foreign investors more management control of American airlines.

The American Congress rejected a move to raise the twenty-five percent ceiling on voting rights by foreign investors in 2003 and it seems to be that the new Democratic majority in the Congress is unwilling to move on this issue.

Critics in the U.S. Congress said that more involvement by foreign investors in the operation of American airlines raises national security concerns and such changes will be outside the American Department of Transportation jurisdiction.

The American decision puts a big question mark on the future negotiations between the United States and the European Union to draft a new treaty that will govern air travel between the two continents. Despite this, new talks on the treaty were set for early 2007, in Brussels.

The Open Skies aviation treaty would have allowed airlines of both blocs to fly wherever they want, between European cities and the United States and charge any price they want.

Mr. Jacques Barrot, vice president of the European Commission and the Commissioner in charge of Transport, expressed, in a written statement, his disappointment over the American decision.

For over two decades the airline industry, on the two continents have sought to find a way to replace the 1944 Chicago Convention which governs this industry.

Should the European Union and the United States fail to reach an agreement, this will move the airline industry to further distance the possibility of putting it on a similar standing as other industries.

In such a case scenario, it will require the European Commission to resume legal proceedings against European Union member states over the existing bilateral agreements with the United States that have been ruled by the European Court of Justice as illegal.

Israel Rafalovich
U.N. OBSERVER & International Report