EU Commission seeks control over airline pacts

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EU Commission seeks control over airline pacts

BRUSSELS (Reuters) =97 The European Commission is set to make a fresh grab=
=20
for control over international aviation pacts on Wednesday, asking for=20
powers to negotiate all such deals on behalf of EU member states. According=
=20
to documents obtained by Reuters, the European Union's executive arm will=20
tell the bloc's 15 member states they must drop the idea of "national" air=
=20
carriers and give all EU airlines equal rights to fly to and from their=20
airports. "We identify our main priority to be to obtain the recognition of=
=20
'Community carriers' by third countries and thereby to unblock=20
consolidation within the (EU) airline industry by removing existing=20
provisions that discriminate on the basis of nationality," an internal=20
Commission memo said. At their weekly meeting on Wednesday, the top EU=20
officials are likely formally to issue both a request to renegotiate=20
aviation pacts on behalf of EU states =97 a task that would take years =97=
 and=20
rules on how governments should act in the interim. Governments have so far=
=20
been reluctant to relinquish the right to negotiate with non-EU countries,=
=20
but a landmark ruling in the European Court of Justice last November found=
=20
parts of existing bilateral deals with the United States broke EU law.=20
Since then, the Commission has told EU governments to give up those=20
agreements and allow it to renegotiate with Washington a single pact=20
covering the entire EU, a proposal that is still being considered by=20
national governments. In its latest move, the Commission goes further,=20
saying it should eventually renegotiate all existing aviation pacts, so=20
they no longer discriminate between EU carriers on the grounds of=20
nationality and, instead, recognise EU-owned carriers.

CONSOLIDATION BLOCK
The Commission says the current system of bilateral pacts is preventing the=
=20
creation of a true single European aviation market and stopping much needed=
=20
consolidation. Aviation pacts' "nationality clauses" complicated merger=20
plans between British Airways and KLM in 1998. The talks were eventually=20
aborted amid uncertainty over whether the new carrier could keep its flying=
=20
rights in both countries. During the several years it would take years to=20
renegotiate the hundreds of pacts EU states have, to remedy the nationality=
=20
issue, the Commission wants EU governments to promise not to make any more=
=20
restrictive deals.
They would have to inform Brussels when they intend to negotiate flying=20
rights with foreign governments, and submit the results so it can check=20
they comply with EU law. Any new bilateral deals should not favour certain=
=20
airlines over other EU carriers that may want to operate on the routes=20
concerned, the Commission's draft proposal says.


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