By Martin Banks - 20th March 2007
The UK is reportedly ready to drop its opposition to the proposed open skies deal between the EU and the US.
Diplomats in Brussels said the move comes in the face of overwhelming support for the agreement from other European countries.
In theory, the British government, which is in a minority of one on the issue, could veto the deal when EU transport ministers meet on Thursday.
The European commission, which brokered the deal with the Bush administration, and Germany, current holder of the EU presidency, are pressing for a consensus among the 27 ministers.
German chancellor Angela Merkel wants it formally endorsed at an EU-US summit she will chair on 30 April.
But diplomats suggest they could push for a majority vote if the UK threatened to wield its veto.
All of the other 26 EU countries, including 11 whose airlines cannot fly directly to the US, support the agreement.
Under current rules, only four airlines – British Airways, Virgin Atlantic and the US-based United and American – can operate on the lucrative route between New York’s JFK airport and London’s Heathrow.
The draft deal, which would open up the transatlantic market, would allow other US carriers to offer flights to Europe but does not give EU carriers reciprocal rights.
Earlier this month, British transport minister Douglas Alexander said “there remains work to be done” on the agreement and warned that a level playing field was needed.
But diplomats now say the UK could withdraw its opposition if it was satisfied that the issue of foreign investment in US airlines could be re-negotiated at a later date.
"Negotiations are continuing and they are at a crucial stage," said a UK government source.
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