Wednesday October 15, 2008
US State Dept. Deputy Assistant Secretary for Transportation Affairs John Byerly once again warned that the liberalization of present rules on airline ownership and control, as sought by the European Commission as part of second-phase EU-US open skies negotiations, will be a "tough case" although he said the US is not totally against it. "We have an open mind, but it cannot be an easy thing to do," he said in Kuala Lumpur.
He called for a proactive approach from Europe and asked it to present its case in compelling terms. "They will have to deal with what are perceived negatives" of liberalizing those rules, he advised. Those negatives include strong opposition from American labor and the issue of effective reciprocity. "Is the German government ready to let Lufthansa be taken over by a US carrier? An Air France KLM proposal to take control of Alitalia is essentially thwarted by the Italian government who says it does not want foreign control of its national carrier," he said. "That's fine, but how do we explain to the US Congress if we were to advocate for changing our laws that American investors will be able to buy Alitalia? This is not an easy question."
Byerly, who is the chief negotiator for the US in the EU-US open skies talks, reiterated the necessity to attack the "global spiderweb of bilateral restrictions" and confirmed his office has drafted a template for a multilateral agreement. "It is a 'discussion draft' of a multilateral agreement on international investment in airlines," he said, stressing he hopes it will set the stage for an "open" exploration of ideas on investment liberalization and the issue of nationality clauses found in many air services agreements. "We are seeking as many ideas and input as possible," he said. "A judgment as to whether the US would itself sign a multilateral agreement, and under what conditions, must be reserved until we have further developed the concept and explored others' view."
by Cathy Buyck
ATWOnline
US State Dept. Deputy Assistant Secretary for Transportation Affairs John Byerly once again warned that the liberalization of present rules on airline ownership and control, as sought by the European Commission as part of second-phase EU-US open skies negotiations, will be a "tough case" although he said the US is not totally against it. "We have an open mind, but it cannot be an easy thing to do," he said in Kuala Lumpur.
He called for a proactive approach from Europe and asked it to present its case in compelling terms. "They will have to deal with what are perceived negatives" of liberalizing those rules, he advised. Those negatives include strong opposition from American labor and the issue of effective reciprocity. "Is the German government ready to let Lufthansa be taken over by a US carrier? An Air France KLM proposal to take control of Alitalia is essentially thwarted by the Italian government who says it does not want foreign control of its national carrier," he said. "That's fine, but how do we explain to the US Congress if we were to advocate for changing our laws that American investors will be able to buy Alitalia? This is not an easy question."
Byerly, who is the chief negotiator for the US in the EU-US open skies talks, reiterated the necessity to attack the "global spiderweb of bilateral restrictions" and confirmed his office has drafted a template for a multilateral agreement. "It is a 'discussion draft' of a multilateral agreement on international investment in airlines," he said, stressing he hopes it will set the stage for an "open" exploration of ideas on investment liberalization and the issue of nationality clauses found in many air services agreements. "We are seeking as many ideas and input as possible," he said. "A judgment as to whether the US would itself sign a multilateral agreement, and under what conditions, must be reserved until we have further developed the concept and explored others' view."
by Cathy Buyck
ATWOnline