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US-EU ink air pact: tentative transatlantic aviation deal faces obstacles.

Article Excerpt
The United States and European Union last month tentatively agreed to a regulatory framework for a new, liberalized air transport agreement. Years in the making, the deal could lead to significantly wider market access for airlines on both sides of the Atlantic, but complications in the transatlantic airline sector could derail its approval.

The deal "would authorize every E.U. and every U.S. airline to fly between every city in the European Union and every city in the United States," the U.S. Department of State said.

As early as October 2006, the first-stage agreement would eliminate restrictions on routes and flight frequencies, and grant "unlimited rights to fly beyond the E.U. and U.S. to points in third countries."

Under those terms, more airlines from both sides theoretically would compete at London Heathrow Airport, a privilege now enjoyed only by American Airlines, British Airways, United Airlines and Virgin Atlantic Airways.

U.S. Transportation Secretary Norman Mineta hailed "the text of a first-step agreement" as an "historic opportunity to increase travel, reduce fares, expand commerce and bring two continents closer together than ever before."

As the biggest achievement thus far...

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