By Henrietta Billings - 14th May 2004
After week long talks aimed at striking an aviation deal on "open skies", EU and US negotiators remain at loggerheads over the key issue of market access.
Washington is digging its heels in over an EU request to allow European carriers to fly US domestic routes - a practice known as "cabotage".
Brussels has repeatedly said any interim deal that might be signed at the EU-US summit in June must include some form of market access, and a clear commitment to a further second phase of liberalisation.
Speaking after the talks ended on Friday, top US negotiator John Byerly told journalists that he was still optimistic about a reaching a deal by June.
He said Washington would present a refined offer on cabotage next week, a proposal that would give European airlines access to the market with passengers and cargo "without overstepping" existing US laws, Dow Jones reports.
One option under consideration is to grant European carriers "freight forwarder status", but he gave no further details.
It remains to be seen whether or not this will be enough to satisfy the European side.
EU transport chief Loyola de Palacio has said that if no satisfactory deal is reached, she will ask national governments to tear up their existing bi-lateral open-skies treaties
Under a so-called "open 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.
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