Air travel in the European Union and the United States accounts for about 60 per cent of the world’s air traffic. On 30 March, the so-called “Open Skies” agreement between the European Union and the United States entered into force. This agreement, described by the Commissioner for Transport Jacques Barrot as one of great political and economic importance, is aimed at reducing restrictions on air travel between the two parties.

In essence, this arrangement allows any airline based in the EU to fly from any city within the Union to any city in the United States and vice-versa. This had not been previously the case. Heathrow Airport, for example, was restricted to only four airline carriers for transatlantic flights. From the end of March, the possibility is that there shall be a better choice, and carrier names had long been mentioned as having an interest in the use of this route. Other rights being granted by the agreement include the right to fly across each other’s territory without landing and the right to make stops in the territory for non-traffic purposes.

The importance of consumer protection, although specifics are quite vague, is also being affirmed within the agreement. It is worthy to note that last year witnessed a certain degree of lobbying in the United States to have an Airline Passenger Bill of Rights passed through Congress.

This would have introduced a set of federal rights to empower their current voluntary guidelines and also do away with fragmented State laws. The European Union, as is quite well known, already has this kind of legislation in place.

From a European perspective, the “Open Skies” agreement builds on our internal market for aviation which provides open access to all routes within the Union, for all EU airlines with the relevant operating licence.

Around 50 million passengers make transatlantic flights each year. According to forecasts provided by the European Commission, this development is expected to bring about economic benefits amounting to billions of euros, an increase of 26 million passengers and around 80,000 new jobs over a five-year period. It does not mean that some may not feel a pinch. Airlines that are currently in a more privileged position expect stiffer competition.

The arrangement had originally been expected to enter into force last October, however on a request from the UK, also partly due to the fact that Heathrow airport shall become very attractive for more airlines, it was postponed to last month to provide some leeway.

Issues regarding airline ownership and environmental measures are also treated.

This agreement lays the path for the next phase to continue increasing this industry’s liberalisation. The EU’s aim is to establish an Open Aviation Area, based on the single market concept, where investment may move freely and EU and US airlines may provide unrestricted air services that include access to the lucrative domestic markets. Negotiations on these issues are expected to start by May.

Julian Micallef is Civil Society Coordinator at Forum Malta fl-Ewropa