U.S. mulls 'open skies' treaty with EU

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U.S. mulls 'open skies' treaty with EU

BRUSSELS (Reuters) =97 The United States hopes to get a quick, basic deal=20
with the European Union on air traffic rights when talks begin after=20
August, leaving trickier issues for later, a U.S. transport official said=20
on Thursday. The EU's 15 member states want to replace their existing=20
national trans-Atlantic airline rights with a single "open skies" treaty=20
for the whole EU. Washington has said it is in favor, but is hesitant about=
=20
some of the extra demands the Europeans may make. In addition to take-off=20
and landing rights for Atlantic routes, the EU wants to discuss allowing=20
greater foreign ownership of U.S. airlines, the possibility for EU airlines=
=20
to operate domestic U.S. routes and limits on state aid.

The U.S. State Department's person in charge of the negotiations, John=20
Byerly, said the issues which would not require changes to U.S. law would=20
be the quickest to agree. "(We should) look at possibilities for an 'early=
=20
harvest' agreement with both sides deciding that negotiations would of=20
course continue," he told reporters after meeting his counterparts at the=20
European Commission in Brussels. "This would allow near-term benefits for=20
European and American publics and yet keep the door open for further=20
advances." EU governments gave the Commission, the bloc's executive arm, a=
=20
mandate to negotiate a wide-ranging aviation deal with Washington earlier=20
this month, following a court ruling last year that parts of existing=20
bilateral treaties break EU law.

One of the main aims of an EU-wide deal would be to remove the nationality=
=20
clause which currently means that, for example, only French airlines can=20
fly to the United States from France. Aviation experts say this could open=
=20
the way to mergers between airlines from different EU countries which would=
=20
no longer have to worry about losing flying rights if they change=20
nationality. U.S. Transport Secretary Norman Mineta is due to discuss the=20
issue for the first time with EU Transport Commissioner Loyola de Palacio=20
at an EU-U.S. summit in Washington next Wednesday. Substantive talks are=20
due to begin after the August recess. One of the more problematic issues=20
the United States may raise is environmental regulation, Byerly said.=20
Washington is concerned about tough restrictions on night flights at=20
European airports that particularly hit express freight operators

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