State pursues bilateral aviation deal with US

The Government is pursuing a new aviation deal with the US in advance of an expected EU/US agreement on open skies, in an attempt…

The Government is pursuing a new aviation deal with the US in advance of an expected EU/US agreement on open skies, in an attempt to delay the axing of the Shannon stopover.

Irish officials met their US counterparts in Brussels this week for negotiations on the fringes of the EU/US negotiations on open skies.

Further bilateral talks will take place in Washington next month, with Irish sources hopeful of a deal before December.

A Government spokesman said last night it was expected that the US and EU would sign an open skies deal later this year and it was important for Ireland to have negotiated a transitional agreement with the US for Shannon airport before this was in place.

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"We want a continuation of the current agreement for a transitional period so that all flights do not stop from day one of the EU/US deal on open skies," he added.

Under an open skies agreement between the US and EU, airlines would have far more freedom to fly between European and US cities.

This would open up substantially more routes for airlines such as Aer Lingus in the US, substantially boosting the carriers market value ahead of an expected public flotation.

However, an open skies agreement is also likely to remove the current requirement on 50 per cent of transatlantic flights to and from Ireland to stopover at Shannon.

Irish officials hope that by signing a new bilateral deal with the US authorities they can negotiate a transition period of a number of years for Shannon airport.

A Commission official confirmed yesterday that it was aware of the bilateral negotiations taking place between the Irish and US governments on the fringes of the wider EU/US talks on open skies.

He said he saw no problem in the parallel talks.

Negotiations on an open skies agreement between the EU and US broke down in June 2004, with the EU arguing it was not offered sufficient access to the US market.