Press and Photo Gallery
Timothy Calls for Equitable Liberalisation of Air Transport Market
Brussels, 1 September 2008 -- In a letter to the Financial Times, Timothy Kirkhope MEP, the Conservative Transport Spokesman, has called for the EU to deliver on its promises with regard to air liberalisation. This follows news that British Airways is proposing a merger with American Airlines.
In 2006 negotiations began to liberalise air traffic between the EU and the United States under the so-called "Open Skies" deal. It was heralded as great news for the consumer, and would break up the perceived monopoly under the previous arrangement, Bermuda II. However, during the first round of talks, the Commission effectively caved in to American demands that European carriers would not be allowed to operate within the US domestic market.
In the letter, Mr Kirkhope writes:
"Sir -- The European Commission is justified in probing the proposed link-up between British Airways and American Airlines to ensure the best arrangement for the consumer (Report: EU regulators probe BA’s Iberia/AA plans).
However, it must also realise its failures. The negotiations leading up to the "Open Skies" deal have forced BA's hand. Despite opening up routes between Europe and the US, the deal has not fully opened up the American market to European carriers, leaving our carriers at a significant disadvantage.
BA's merger with American Airlines is simply a reaction to the "Open Skies" deal's inequalities. When negotiating the second phase of the deal, the EU must settle for nothing less than an equitable liberalisation of both markets, which will benefit consumers on both sides of the Atlantic."
Speaking in Brussels, Mr Kirkhope added:
"In the second round of negotiations the Commission should tackle US protectionism head on: it should be fighting for reciprocal agreements on ownership rights."
