NYTimes.com Article: Europeans Reach Accord on Airspace

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Europeans Reach Accord on Airspace

December 11, 2003
 By PAUL MELLER





BRUSSELS, Dec. 10 - Representatives of the 15 European
Union nations and the European Parliament have hammered out
an agreement to create a single air-traffic space.

The deal, struck late Tuesday night, is a big step toward
replacing the existing patchwork of airspaces based on the
15 sovereign borders with a more practical series of
cross-border blocks of airspace.

This "single sky'' plan promises safer, cheaper and more
punctual journeys, European officials said.

"We have reached a milestone in European transport
policy,'' said the European Union commissioner for
transport and energy, Loyola de Palacio, after the
agreement Tuesday night.

Martin Borghetto, an aviation analyst with Morgan Stanley
in London, said the agreement was "a first step in the
right direction" to creating a single aviation market for
the European Union.

The plan will also pave the way for greater coordination
between civil and military airspaces. Flights that are
currently forced to go around cordoned-off military
airspaces may, for example, be able to fly through such
zones if they are not being used for military purposes,
thus saving fuel and time.

The main obstacle to an agreement had been the reluctance
of national governments to give up sovereignty of the
airspace above their countries. On Tuesday, negotiators
agreed to allow the national governments a veto power over
the new airspace blocks that touch their borders.

The package of laws on airspace is not expected to take
effect until the end of next year at the earliest. And it
is subject to approval by the full European Parliament and
a formal meeting of national government ministers.

The European Commission started work on a single-sky
proposal four years ago, but the European airline industry
has been pushing for such an initiative since the late
1980's.

British Airways, Europe's largest airline, welcomed the
agreement. "It will free up airspace, reduce congestion and
therefore lead to lower costs," said Steve Double of
British Airways.

The commission estimates that the agreement may result in
savings of $1.6 billion to $2.3 billion through more
efficient use of flights and jet fuel.

"Beyond that, delays and excessively long flight paths
followed by aircraft harm the environment,'' the commission
said in a statement. "Fuel consumption and gas emissions
could be cut by 5 percent."

Industry analysts predict that air traffic over Europe will
double by 2020. Reorganizing how flights are managed is
essential for safety, the commission said.

"Air-traffic control in Europe is among the safest in the
world, but it is not organized equally rigorously in every
state,'' the commission said.

The commission says the new system will involve fewer, but
larger and better-coordinated air-traffic control centers.
Britain's controller, National Air Traffic Services,
estimates that the effort will lead to reducing the number
of air-traffic control centers to 12 to 20 from the current
65.

Once adopted, the new laws governing airspace will apply
across 25 countries when the European Union expands. A
European Commission spokesman, Gilles Gantelet, said it was
inevitable that countries like Switzerland and Norway,
which will remain outside the union for the foreseeable
future, will participate in the new regime.

Both Switzerland and Norway participated in the discussions
that led to the single-sky project, he said, but the new
rules are not included in existing bilateral agreements
between these countries and the European Union.

"A single sky above 25 countries with a hole in the middle
where Switzerland is situated is not likely to happen," he
said.

Mr. Borghetto, the aviation analyst with Morgan Stanley,
noted that the move to unify control of the skies above
Europe would not have any direct effect on the
consolidation that is needed among European airlines, but
would ultimately help reduce barriers to potential
ownership of airlines.

Toward that end of greater consolidation and cooperation,
the European Commission on Wednesday approved a six-year
alliance between British Airways and Spain's national
airline, Iberia.

http://www.nytimes.com/2003/12/11/business/worldbusiness/11sky.html?ex=1072176688&ei=1&en=7e6d22627fb9393a


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