US and European negotiators began a new round of talks today to try to revive an agreement that proponents hope will open transatlantic air travel to more competition.
The "open skies" negotiations have failed twice in recent years, including last December when strong opposition from the US Congress and labour groups prompted the Bush administration to withdraw from the talks.
"I know that there are some difficult issues on the table for the negotiators to solve this week. But I stress once more that the status quo is not an option and that failure is not an option," said Jacques Barrot, the European Union's transport commissioner.
The US side is led by State and Transportation department officials. A spokeswoman for Transportation Secretary Mary Peters had no comment on the negotiations. Europe has long wanted to ease restrictions that prevent overseas airlines from flying point-to-point within the United States.
European negotiators also want Washington to drop a long-standing rule that prevents foreign investors from holding a controlling interest in a US airline.
"Don't fear open markets," German Transport Minister Wolfgang Tiefensee urged in a speech to US and international airline industry and government officials this week. International airlines flying beyond a single-stop in the United States has been a non-starter with the administration and with Congress.
But the Bush administration has twice proposed easing the ownership rule, arguing most recently that allowing international investors some decision-making power in return for their equity stake of up to 25 per cent could open new avenues for domestic airlines to obtain capital.