EU-U.S. Agreement Opens Up Transatlantic Aviation
April 1, 2008 // Published as a news service by IHS
The new air transport agreement between the European Union (EU) and the United States, which allows European airlines to fly without restrictions from any point in the EU to any point in the U.S., took effect on March 30.
"This marks the start of a new era in transatlantic aviation. This agreement will bring more competition and cheaper flights to the U.S.," said Jacques Barrot, vice president of the European Commission (EC) in charge of transports.
"A fully Open Aviation Area between the EU and the U.S. must remain our objective," added Barrot.
The agreement is the most ambitious air services deal ever negotiated. The two biggest aviation markets, encompassing 60% of world traffic, will cooperate closer in all fields of aviation policy. In May 2008, the EC will engage in second-stage negotiations with the U.S.
For the first time, all EU airlines can operate direct flights to the U.S. from anywhere in Europe and not just from their home country. The agreement removes all restrictions on routes, prices, or the number of weekly flights. Many airlines plan to start increasing the number of flights and destinations. For example, flights between London-Heathrow and the U.S. will increase about 20% compared to April 2007.
With about 50 million annual passengers between the EU and the U.S., the agreement covers by far the biggest international air transport market. The removal of all market access restrictions will stimulate competition. Prices for transatlantic flights are expected to fall, with the resulting benefits for consumers reaching €12 billion over the first five years. The agreement could also lead to the creation of 80,000 jobs on both sides of the Atlantic.
In addition, the agreement establishes closer cooperation between the EU and the U.S. and tackles new challenges, such as security and the environment. This will facilitate the operations for airlines and airports and reduce hassle for passengers.
This cooperation is already delivering tangible results - for example, in the field of environment. The Atlantic Interoperability Initiative to Reduce Emissions (AIRE) is a joint project to reduce the environmental impact of transatlantic flights. Greener transatlantic flights will reduce aviation emissions per flight.
Building on the success of the European internal aviation market, this agreement is an important first step towards the normalisation of the international aviation industry.
The ultimate objective of the EU is to create a transatlantic Open Aviation Area: a single air transport market between the EU and the U.S., with free flows of investment and no restrictions on air services, including access to the domestic markets of both parties.
The agreement was signed on April 30, 2007 at the EU-U.S. Transatlantic Summit in Washington. It replaces 21 bilateral agreements between EU member states and the U.S.
Source: European Commission.