NYTimes.com Article: Europeans Told to Avoid U.S. Accords on Airlines

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Europeans Told to Avoid U.S. Accords on Airlines

January 30, 2003
By THOMAS FULLER
International Herald Tribune






BRUSSELS, Jan. 29 - The European Union warned the
governments of its 15 member nations today that it would
take legal action against any of them that make individual
"open skies" airline agreements with the United States.

The move is the latest effort by the European Commission,
the union's executive body, to do for air transportation
what it has done for years with merchandise trade:
negotiate collectively.

In a confidential and blunt letter to the 15 nations'
ambassadors in Brussels, François Lamoureux, director
general for transportation at the commission, said, "Member
states should not engage in negotiations with the U.S. on a
unilateral basis." Otherwise, he said, the commission "will
have no alternative" but to take them to court. A copy of
the letter was obtained by The International Herald
Tribune.

"Open skies" agreements give permission for airlines to fly
between countries. Existing agreements between the United
States and 11 European nations have drawn criticism for
being one-sided, restricting the European carriers from
carrying passengers between points in America while the
American carriers are free to fly between points in Europe.


A European court struck down the existing agreements in
November, saying that they violated the union's principle
of equal treatment for all members in trade relations.
American officials have been mounting a stepped-up campaign
since then to replace the old agreements with new ones,
offering more attractive terms. "I am writing to caution
your governments against entertaining any such approach
from the United States," Mr. Lamoureux wrote to the member
ambassadors.

The European Commission has argued that the agreements have
blocked the consolidation of the European airline industry
by creating obstacles for cross-border mergers.

The United States has offered to remove ownership
restrictions and otherwise modify the agreements to pass
muster with the European courts, according to John R.
Byerly, deputy assistant secretary of state for
transportation affairs.

Mr. Lamoureux, in his letter, described these concessions
as "minimalist proposals." But there were signs that some
European Union members preferred new bilateral deals rather
than bargaining collectively through the union.

http://www.nytimes.com/2003/01/30/business/worldbusiness/30JETS.html?ex=1044936198&ei=1&en=a9abbfc7c977f05b



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