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April 13th, 2021

The Open Skies Transatlantic Agreement Was Approved In

Norway and Iceland joined the agreement in 2011. It`s time to listen to the voice of efficiency. The current restrictions are costing consumers and airlines considerable costs. Open airspace would enable EU and US airlines to effectively organise themselves to offer combined domestic and international air services in the Europe-US market. Passengers would benefit from lower fares and increased service opportunities. Airlines would also benefit. Faced with the economic stalemate of many transatlantic airlines, regulatory reform that helps producers and consumers should not be a pipe dream. In addition to the typical scope of bilateral air services agreements, the EU-US Air Services Agreement has created a modern legal framework to promote safe, affordable, cost-effective and competitive air transport. This strong cooperation framework enables the EU and the US to meet new challenges in the areas of security, security, environment and climate, competition policy and business. The AIR Services Agreement between the EU and the US also guarantees recognition of the EU name (equal access to all EU air carriers) and thus provides legal certainty to the transatlantic market, given the requirements of the European Court of Justice rulings on open skies.

Third, the removal of the four undeered agreements would result in an increase in passenger traffic. Current bilateral agreements between the United States and the United Kingdom, Greece, Ireland and Spain limit the amount of transatlantic travel. In order to assess the impact of replacing these restrictive bilateral agreements with open airspace, we calculated the impact of the “open skies” agreements between the United States and other EU countries in the 1990s, which replaced equally restrictive agreements. Our analysis – the first rigorous assessment of the impact of the open skies agreements – shows that, overall, these agreements have resulted in a 10% increase in the number of transatlantic passengers. By extrapolation, we calculated that the removal of restrictive bilateral agreements would result in a benefit of at least 2.2 million passengers per year, mainly on U.S.-U.K. routes, and an increase in consumer profits from $600 billion to $1.5 billion per year. This is an estimate of the lower limits, as it is based on the effects of bilateral open skies agreements and the adoption of open airspace would lead to even greater liberalization. America`s open skies policy goes hand in hand with the globalization of airlines.

With airlines` unlimited access to our partners` markets and the right to fly all intermediate points and crossing points, open-air agreements offer maximum flexibility for airline alliances. The signing of the EU-US Air Transport Agreement in 2007 was a watershed moment in the air relations between the two regions, which brought together the world`s two largest air transport markets and connects more than 800 million people on both sides of the Atlantic. In 2010, a protocol amending the original agreement (called the “second phase agreement”) was signed, which significantly improved market access and regulatory cooperation. In 2011, Norway and Iceland`s accession to the EU-US Air Services Agreement was two states fully integrated into the European internal aviation market. Secondly, better coordination on interline transatlantic routes would lead to lower fares.

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