Today, the European Union and the United States of America agreed on the opening of negotiations for an overall agreement on air transport liberalization. The conclusions adopted note that the leaders of the United States of America and the European Union "are pleased to announce their agreement to begin comprehensive air service negotiations in early Autumn following the early June decision of the EU Council to approve a negotiating mandate for the Commission. This is an historic opportunity to build upon the framework of existing agreements with the goal of maximizing benefits for consumers, airlines, and communities on both sides of the Atlantic. The United States and the European Union will work together in a spirit of cooperation to develop a mutually beneficial approach to this crucial economic sector in a globalised economy." "An aviation agreement between the EU and US would set the model for the rest of the world – these negotiations provide an opportunity to achieve fundamental reform of this sector that we should not waste," said European Commission vice-president Loyola de Palacio.

On 5th June, the Transport Council gave the Commission its long-awaited mandate to negotiate a comprehensive air services agreement with the United States. This will allow the Commission to negotiate with the US in order: (i) to redress the legal problems in existing bilateral agreements between the US and Member States identified by the Court of Justice in its rulings in November 2002; and (ii) to establish an open aviation market comprising the American and European markets, including the removal of restrictions on foreign investment in each other’s airlines.

In the eyes of the European Commission, an OAA would essentially create a free trade area for air transport between the EU and US. This would produce a more competitive market than today, generating greater choice of services and lower fares for air travellers. It would give EU and US airlines complete freedom to serve any pair of airports in the EU and US – EU airlines are currently only able to operate between their own Member State and the US destinations. Relaxing restrictions on ownership and control would also make it easier for EU and US airlines to enter into mergers and take-overs with each other.

A report by US consultants, The Brattle Group, has estimated that an EU/US Open Aviation Area would generate upwards of 17 million extra passengers a year, consumer benefits of at least $5 billion a year, and would boost employment on both sides of the Atlantic.

"We welcome and are encouraged by the US Administration’s proposals to bring foreign investment restrictions in line with those in the EU, and hope that they are successful. This would provide a good basis for the EU and US then to move further on foreign investment in the context of an Open Aviation Area (OAA), with the aim of putting aviation on the same footing as other industries," explained Loyola de Palacio.