The international express sector looks set to benefit strongly from the now-approved Open Skiesagreement between the European Union and the USA that is due to go into force in March 2008. The
launch was put back six months at the UK’s request.The long-awaited deal paves the way for a boom in transatlantic passenger flights, and thusadditional bellyhold capacity for express shipments, as well as additional freighter servicesbetween the world’s two largest trading blocs.
Under the agreement that was approved by EU transport ministers yesterday, passengerairlines, which frequently carry express shipments as belly freight, will be free to operatebetween any EU and US airports, as well as continue flights to “beyond” destinations in othercountries. This removes the previous patchwork of bilateral agreements between EU states and theUSA.
Moreover, under so-called “seventh freedom” traffic rights, EU airlines will be able tooperate cargo flights from the USA to third countries without having to fly first from the EU tothe USA. US cargo airlines will not have any additional seven freedom rights.
But the restrictions on foreign ownership of US airlines, including a cap of 25% votingequity, and on the right to operate domestic US flights remain in place. The EU aims to overcomethese obstacles in further negotiations towards an “Open Aviation Area” over the next fewyears.
The International Air Transport Association (IATA) welcomed the EU approval of the US-EU openskies agreement but stressed it remained necessary to modernise the “archaic ownership rules” inthe aviation sector. The Association of European Airlines said the agreement was “a step in theright direction” on the path towards “a true EU-US Open Aviation Area”. The Air TransportAssociation (ATA), representing US-based airlines, also welcomed the agreement.
