U.S., EU pledge to strike 'open skies' agreement = = = = Wednesday June 25, 4:51 PM EDT = By John Crawley WASHINGTON, June 25 (Reuters) - The United States and Europe pledged on W= ednesday to further liberalize transatlantic aviation, but experts said o= ld obstacles are still prominent despite big changes in how these talks a= re handled overseas. The two sides have been laying the groundwork in recent weeks for formal = negotiations on removing air travel restrictions. Last week, one senior U= =2ES. official held out the prospect of a quick deal on non-contentious i= ssues. Negotiations would then continue on more complex topics. Informal meetings are taking place at the Transportation Department this = week with formal talks to begin in early fall. No specific dates for thos= e negotiations have been announced but the first-round will be held in Wa= shington. = Both sides heralded the benefits of broader air liberalization without me= ntioning some intractable differences, including those that hampered talk= s with Britain in recent years. "Today, we are launching negotiations on a comprehensive air services agr= eement, better known as 'open skies' that will benefit our consumers, our= airlines and our communities, U.S. President George W. Bush said at a Wh= ite House news conference with officials from the European Union. "This will change all the industry of aviation transport, and will provid= e better service, lower price and more choice for the 11 million people w= ho cross the Atlantic every year and even more in the future," Romano Pro= di, president of the EU's executive body, the European Commission, said a= t the same briefing that centered on broad EU-US relations. COURT RULING OPENS WAY The United States had negotiated 19 separate "open skies" agreements with= European nations, including non-EU members. The U.S. government was unab= le to strike comprehensive deals with Britain, Greece, Spain and Ireland.= Some of the 15-member EU states have wanted for years to negotiate a sing= le treaty, but it was not until a European court decision last year opene= d the way for those talks to proceed. Aviation industry consultants and other experts acknowledge that many tou= gh issues remain even though the negotiating landscape has changed and th= at the industry's global financial troubles may weaken some barriers. For instance, the United States believes that some European environmental= regulations that limit flights are too restrictive. Another obstacle has been Britain's refusal to expand access to London's = Heathrow airport beyond the limited number of flights available to only t= wo U.S. airlines. Not only was an "open skies" deal elusive but differenc= es over Heathrow scuttled attempts in recent years by American Airlines (= AMR) and British Airways (BAY) to cement a major marketing alliance. Europeans would like the United States to ease limits on international ow= nership of U.S. carriers, a change that would need approval from Congress= =2E While Transportation Secretary Norman Mineta wants to boost the ceili= ng from 25 percent to 49 percent, some lawmakers are concerned that too m= uch foreign financial influence would challenge U.S. interests. Early agreements could be struck on reducing European red tape for U.S. c= arriers flying overseas routes, standardizing financial and tax procedure= s, and eliminating hurdles for broadening code-share agreements. "Nothing is certain," said Mark Gerchick, an aviation consultant and form= er senior Transportation Department official. "It's going to take time, b= ut it has moved beyond the realm of pure rhetoric." = =A92003 Reuters Limited. = Roger EWROPS