Open Skies & Aviation Services

The U.S. Department of Transportation (DOT) and the European Commission launched on March 18 a new joint research project aimed at deepening their understanding of how alliances have affected competition in transatlantic markets and the potential impact of the new U.S.-EU Air Transport Open Skies Agreement set to begin this month. The U.S.-EU Air Transport Agreement, which will for the first time allow EU and U.S. airlines to serve any route between Europe and the United States, calls for developing a common understanding of trends in the airline industry in order to promote compatible approaches on competition issues. The Commission and DOT will interview airlines, travel agents, industry analysts, and consumer groups, as well as perform quantitative analysis on air traffic data. The research project will ultimately enable the Commission and DOT to develop a common understanding of competition in trans-Atlantic markets and to inform public discussions of the future of air transportation.

On March 30, the comprehensive first-stage U.S.-EU Air Transport Agreement signed in April 2007 becomes effective. The Agreement establishes Open Skies between the U.S. and all 27 EU member states— a geographical area accounting for an estimated 60 percent of global air traffic. Under the Agreement, all U.S. and EU airlines may fly between any point in the EU and any point in the U.S. without restrictions on routes, the number of flights, or prices charged. The first-stage of this agreement is the culmination of four years of intense negotiations and demonstrates what Europe and the United States, working together, can accomplish. Second-stage negotiations with the European Union will begin in Ljubljana on May 15, hosted by the Government of Slovenia, which has the EU presidency through June.

U.S. Deputy Assistant Secretary of State John Byerly in Brussels for U.S.-EU talks on a transatlantic air services agreement, January 9, 2007. Photo by Gery Jacobs2008: U.S.-EU Air Transport Agreement Becomes Effective March 30 (Mar 28, 2008) | U.S. Department of Transportation and European Commission Launch Joint Research Project on Airline Alliances and Competition as Part of Open Skies Agreement (Mar 18, 2008)

At the April 30, 2007, U.S.-EU summit in Washington, the United States and the European Union signed a historic agreement to further liberalize air services. The agreement will take effect on March 30, 2008. The first-stage Air Transport Agreement will replace all existing bilateral agreements between the United States and EU member states and establish an Open-Skies Plus framework between the United States and all 27 EU members. Once implemented, every U.S. carrier will be able to fly to every city in the 27 European Union member states and every EU carrier will be able to fly to any city in the United States. “This agreement ushers in an era of unprecedented liberalization for an area that encompasses 60 percent of global civil aviation traffic,” U.S. Secretary of State Condoleezza Rice said during a press conference with EU Commission Vice President and Transportation Commissioner Jacques Barrot to mark the event.

2007: U.S.-European Union Air Transport Agreement (Apr 30, 2007) | U.S., EU Agree To Reduce Regulatory and Trade Barriers (Apr 30, 2007) | U.S, EU to Sign Open Skies Accord (Apr 27, 2007) | United States Hails Aviation Pact with EU as Win for Both Sides (Mar 22, 2007) | Draft Air Services Liberalization Deal Would Benefit U.S., EU (Mar 5, 2007) | U.S.'s Byerly on Turbulent Times : Regulation, Security and Profitability in the Airline Industry (Mar 5, 2007) | U.S., EU Reach Long-Sought Accord To Liberalize Air Traffic (Mar 2, 2007) (U.S. Transportation Secretary Peters' Statement;
European Commission Press Release) | European Commission Press Release: EU and U.S. Launch a New Round of Open Skies Negotiations (Feb 6, 2007) | U.S., EU To Look at Options To Finalize Open Skies Deal (Jan 17, 2007) | U.S.-EU Joint Statement on Air Transport Talks (Jan 11, 2007) | U.S.'s Byerly Reaffirms Commitment to Finalizing Transatlantic Air Services Accord (Jan 9, 2007)

The Bush administration remains committed to a deal with the European Union (EU) on liberalizing the trans-Atlantic aviation market despite a delay in rulemaking on foreign control of U.S. airlines, U.S. officials say. State Department deputy spokesman Tom Casey said August 17 the administration is holding to pledges made by the two sides in June on concluding a U.S.-EU open skies agreement by the end of 2006. A day earlier Jeff Shane, the under secretary of transportation, said the United States remains committed to changing airline investment regulation despite another delay. The EU considers the change critical to its final acceptance of the agreement.

2006: United States Remains Committed to Open Skies Agreement with EU (Dec 6, 2006) (DOT Notice) | U.S.'s Shane Reviews U.S.-EU Open Skies Progress, Aviation Ownership (Sep 12, 2006) | U.S. Remains Committed to Airline Deal with Europe, Officials Say (Aug 17, 2006) | U.S.'s Byerly, EU's Calleja Hope Air Services Accord Can Be Applied by March 2007 (May 11, 2006) | Official Defends Proposal on Foreign Investment in U.S. Airlines (May 9, 2006) | U.S. Revised Proposed Rule on Airlines Might Delay EU Deal (May 4, 2006) | Airline Foreign Control Rule Might Be Delayed, U.S. Official Says (Apr 25, 2006) | U.S. Officials Urge Congress Not To Block Airline Investment Rule (Feb 8, 2006) & Transcripts of Testimony

Delegations representing the European Union and the United States have successfully negotiated the text of a comprehensive first-step air transport agreement, according to a joint statement issued November 18, 2005, in Washington. The agreement will require approval by the EU's Transport Council of Ministers, consisting of the 25 EU Member States. The EU delegation noted that the Council, in making a decision, will take into account the outcome of the rulemaking process recently initiated by the U.S. Department of Transportation to expand opportunities for foreign citizens to invest in and participate in the management of U.S. air carriers.

2005: U.S.-EU Pact Could Revolutionize Air Travel, U.S. Official Says (Dec 9, 2005) | U.S., European Union Reach Tentative Air Transport Pact (Nov 21, 2005) | U.S., EU See "Substantial Progress" in Air Services Negotiations (Nov 1, 2005) | Byerly Discusses Liberalizing the Transatlantic Aviation Market (Oct 14, 2005) | U.S. Determining How to Proceed on Open Skies Talks with EU (Jul 13, 2004)

2004: U.S. Responds to EU Actions on Bilateral Open Skies Accords (Jul 22, 2004) | U.S. Remains Committed to Opening Transatlantic Aviation Markets (Jun 14, 2004)

2003: Byerly Briefs on U.S.-EU Air Services Talks (Oct 3, 2003) | Joint Statement on Transatlantic Aviation Talks (Jun 25, 2003)

2002: U.S. Official Comments on EU "Open Skies" Ruling (Nov 8, 2002)

2001: The Open Skies Treaty, Enhancing Mutual Understanding (Apr 26, 2001)