By Henrietta Billings - 20th February 2004
EU and US negotiators concluded a third round of 'positive' air talks, aimed at reaching an 'open skies' deal over Trans-Atlantic air space.
EU officials said they were positive about the outcome of the meeting in Washington on Thursday, although they admitted no concrete progress was made.
"The main problems are still there, but the discussions are ongoing and we are confident that we will make progress."
"We may not get everything that we want but we will make progress".
Talks over liberalising the EU-US air market began after Europe's highest court in Luxembourg ruled that the bi-lateral agreements agreed between some individual member states and the US broke EU law.
Under a so-called "single skies" agreement, any EU or US airline could fly to any point on either side of the Atlantic with the freedom to provide services relating to traffic rights and routes, slots and fares, standards of safety and aviation security.
The most sensitive areas of current negotiations include ownership questions, opening up US internal routes to EU carriers, and night flights.
Under European law non EU ownership restrictions are limited to 49 per cent, and Brussels wants Washington to relax its rules on foreign ownership which are capped at 25 per cent.
The US delegation put forward proposals for an initial agreement on the liberalisation issue, which would be subject to a Congressional vote.
They also proposed further liberalising the market - including the possibility of both sides moving beyond the 49 per cent limit.
But in a statement the EU delegation said the proposals "fell considerably short" of its hopes of establishing an Open Aviation Area.
Both sides said progress had been made in clarifying the scope for establishing improved co-operation in the field of competition.
Airline, airport, and worker representatives also attended the meeting.
The two sides are expected to meet again in the last week of March.
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