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Thursday, 31 January, 2002, 11:57 GMT
EU court clouds 'open skies'
European Court of Justice in session
The ECJ is to deliver a final ruling later this year
A series of air travel liberalisation agreements between individual European Union countries and the US are illegal, according to the Advocate General of the European Court of Justice (ECJ), its most senior adviser.


If (the advice) is confirmed, we will need to review the bilaterals in a community perspective

European Commission spokesman
If this so-called "opinion" is followed by the full court later this year, the advice would reinforce the European Commission's right to negotiate 'open skies' pacts with non-EU countries on behalf of all 15 EU governments.

The Commission argues that this would help EU airlines to strike a better deal, while also accelerating much-needed consolidation within the European air travel sector.

The ECJ follows the Advocate General's advice in 80% of cases, a spokeswoman for the court said.

Five-year court battle

Eight EU countries - Austria, Belgium, Denmark, Finland, Germany, Luxembourg, Sweden and the UK - have signed open skies agreements or other one-to-one aviation deals with the US.

The arrangements give these countries' airlines lucrative access to US airports, and guarantee landing rights in Europe for some US carriers in return.

In 1998, the Commission challenged these pacts in court, claiming that they put European airlines which have not negotiated similar agreements at an unfair disadvantage.

The Commission also argued that by limiting European airlines' right to operate in EU countries other than their own, the bilateral pacts break EU laws outlawing discrimination against foreign firms.

Uncertain outcome

The future of these agreements in the event of a final ruling in favour of the Commission is unclear, but changes are highly likely.

"If [the opinion] is confirmed, we will need to review the bilaterals in a community perspective," said a Commission spokesman on Thursday.

The Commission is expected to use a final judgment in its favour to push for the removal of legal barriers preventing European airlines from offering flights to the US from EU countries other than their own.

This would step up competition in the European air travel market.

Many of the bilateral deals specify that reciprocal landing rights apply only to carriers based in the two signatory countries.

Earlier this month, open skies talks between the UK and the US were shelved after British Airways and American Airlines, the two main airlines concerned, said conditions imposed by the US Department of Transport were too tough.

 WATCH/LISTEN
 ON THIS STORY
News image Dr Robert Wolfger, Austrian Airways
discusses what the European Commission decision could mean
News image The BBC's Chris Morris
"A final verdict is expected in the next few months"
See also:

20 Sep 01 | Business
What now for British Airways?
08 May 01 | Business
EU fights for 'open skies'
28 Jan 02 | Business
Europe decides on 'Open Skies'
22 Oct 01 | Business
UK resumes US 'open skies' talks
25 Jan 02 | Business
BA rules out airline deal
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