The Sky's the Limit for Trans-Atlantic Air Travelers

By John Bruton

Seattle Times, Editorials & Opinion, June 23, 2006

As the European Union's ambassador to the United States, I spend a great deal of my time on planes, either crossing the Atlantic or making my way around this vast country. On such flights, I am often tempted to tap the shoulder of my fellow passenger and ask a simple question: Have you heard of the EU-U.S. Open Aviation agreement?

It seems that few know about this agreement, which could soon become reality, but more should. As the most far-reaching agreement in the history of international aviation, it would mean more flights, more convenient routes and cheaper fares for passengers.

The concept behind this deal is fairly simple. Both the United States and the European Union have deregulated domestic markets and adopted regulatory changes to create greater competition in an aviation industry known for protectionism and state control. Accordingly, it makes sense to take the next logical step and merge the two markets to create an aviation market that would serve nearly 750 million people and 26 countries.

In concrete terms, the Open Aviation agreement, sometimes referred to as Open Skies here in the United States, would allow EU and U.S. airlines to fly between every city in the European Union and every city in the United States. There would be no restrictions on where and when airlines could fly, and ticket prices would reflect full competition.

It sounds so logical that it might surprise my fellow passengers to hear that this is not how things currently work. Instead, we have a set of old, restrictive treaties between individual European countries and the United States that were written in a different protectionist era. These treaties put severe limits on service across the Atlantic. For instance, only two U.S. airlines — American and United — are permitted to use London's Heathrow Airport, and a European airline can fly only out of the country in which it is based.

The Open Aviation agreement would put an end to all those head-scratching rules and competitive restrictions. It would leave decisions up to the airlines rather than governments, allowing flexibility in response to market demands. Governments would still play a role, but it would be focused on ensuring safety and security, protecting the environment and making sure that air carriers on both sides have compatible regulations and adhere to fair-competition rules.

It is estimated that opening trans-Atlantic skies would generate upward of 17 million extra passengers and consumer benefits of more than $5 billion each year. It would boost employment on both sides of the Atlantic, especially in the travel and tourism industry. And, as Boeing has said, a trans-Atlantic open aviation market "will create greater opportunities for the traveling and shipping public, the airlines and even aircraft manufacturers."

With all these benefits in mind, we have worked hard over the past years to make an Open Aviation agreement a reality. We have come close, but we still haven't signed on the dotted line. On the European side, we believe that creating an open aviation market requires more than simply getting rid of operational restrictions — it should also mean opening up for investment in each other's markets, just as we have in so many other areas to our mutual benefit. Why should struggling U.S. airlines be denied the opportunities afforded by greater investment possibilities?

But lately there has been an unfortunate revival of protectionism in the United States, and some are doing their best to stop an Open Aviation agreement from becoming a reality. Fearing foreign investments and influence, the arguments run the gamut from security concerns to potential outsourcing of American jobs.
But at the end of the day, it is very difficult to argue against the advantages that we have seen as a result of free trade and open markets. And it is also difficult to argue against freedom of choice and the many jobs it can create.

I hope common sense and clear thinking will prevail so we can strike an agreement before the end of this year. And next time I ask my fellow passenger about Open Aviation, he might just have heard of it as we managed to implement the deal and it got him a cheap ticket.