US Seeks New Air Accord With EU By June

BRUSSELS (AFX) - US authorities hope to broker a deal with the EU to liberalise the aviation industry by the end of June, despite the retraction of key criteria from its proposals last December, said a US government Brussels-based representative.

'We come back to Brussels this week to demonstrate the firm engagement of the (US) administration to conclude a global agreement on air transport between the US and the EU,' said John Byerly, assistant-secretary to the US state department for transport.

'We would like to do that as quickly as possible, certainly during the German presidency to the EU which ends on June 30,' he added.

Byerly is in Brussels with a US government and industry delegation for new talks with EU counterparts tomorrow and Thursday.

Last year, the administration withdrew its plan to give foreign investors more management control of US airlines.

The 'open skies' aviation pact would allow European and US airlines to fly wherever they want between European cities and the US and charge whatever they want.

Those in favour hope such a deal would increase air travel, lower air fares, create jobs and boost investment in US carriers.

Labour unions, some airlines and their allies in congress fear it would cost US jobs and allow foreign investors, even foreign governments, control over an industry critical to national security.

afp/sz/jfr

Copyright AFX News Limited 2006. All rights reserved.

The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.

News stories provided by third parties are not edited by "Site Publication" staff. For suggestions and comments, please click the Contact link at the bottom of this page.