LONDON (AFX) - The draft agreement between the EU and US on opening up trans-Atlantic air routes under the so-called "open skies" plan "falls short" on providing reasonable access to the US market for some European operators, said Transport Secretary Douglas Alexander.
Speaking at an aviation conference here, Alexander said he did not "take lightly the significant economic benefits that would flow from such an agreement".
"But given past discussions, I also recognise that the deal on the table falls short of providing the kind of access to the US market that a number of EU carriers would like," he said.
"What we really need is a level playing field so both European and US industries are able to compete fairly with each other. Geographically and economically, the EU and US represent broadly equivalent markets."
Alexander said if a US carrier could operate from New York to London and on to Frankfurt, "but an EU carrier can't operate from London to New York and on to - say - San Francisco, then there remains work to be done".
The European Commission is looking for approval from EU transport ministers when they meet on March 22.
If successful, a final deal could be signed at the EU/US summit in Washington on April 30.
However, the deal is being strongly opposed by two traditional enemies, British Airways and Virgin Atlantic, who have joined forces on this occasion to attack the proposal.
If approved, the deal would give Continental, Delta and Northwest airlines access to Heathrow airport. If that happens, the deal would be in place from Oct 28.
European airlines would be allowed to make trans-Atlantic flights from any nation and not just their home country. However, the worry for many is that the deal favours US carriers, and that UK carriers would have to give up prime-time landing and take-off slots at Heathrow.
Should the deal go through, it is thought BA and Virgin will lose their valuable protected position at Heathrow and expose their most profitable areas of business to stiff competition.
BA confirmed it will lobby on the issue, saying the deal is not good for UK aviation, while Virgin called the agreement a missed opportunity.
"We do not believe this is a good deal for Europe or the UK," a BA spokeswoman told AFX News. "We have reached a dead-end rather than a pathway to a true open aviation area," she said.
In a statement, Virgin Atlantic chief executive Steve Ridgway said: "Both sides in the open skies debate have a real opportunity to create history and agree a long-lasting trans-Atlantic deal which benefits consumers globally, through greater choice and flexibility.
"Such an agreement could act as a template for removing the shackles of regulation on the aviation industry in other markets worldwide," he said.
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