The EU has agreed a new "single sky" law unifying air traffic control across the continent, while also agreeing measures to boost passengers' rights.
The new package agreed by EU transport ministers will notably pave the way for compensation for passengers denied boarding or subject to cancellations or long delays, officials said.
"Too many Europeans have a bad surprise when checking-in for their flight," said transport commissioner Ms Loyola de Palacio.
"We have strongly promoted the passengers' protection and this is a new spectacular step ahead ... Strengthening the rights of passengers will also help restore their confidence in air travel."
The new single sky law, to come into force from 2005, will introduce common rules on the use of airspace throughout the community in order to reduce air traffic delays and airspace congestion.
"With the agreement achieved today, the European sky will not be any more a patchwork of different systems but a genuine continuum to the benefit of all Europeans," said Ms de Palacio.
The law, originally presented by the European Commission in 1999, had faced opposition from several EU countries including France.
Air traffic controllers' unions, in particular in France, have called strikes in protest at the EU proposals.
Agreement on the legislation had also been held up pending accord on its relationship with military uses of airspace.
At the same time the EU ministers also agreed on a package of measures to strengthen air passengers' rights.
Europe's congested skies have long been a source of woe to passengers across the continent.
One all-too-frequent complaint is of being shunted off flights due to overbooking by airlines keen to ensure their aircraft are as full as possible.
The new law replaces 1991 legislation which did "not effectively deter airlines from denying boarding" and did not cover cancellations for commercial reasons or long delays, officials said.
The new law sets specific compensation levels for passengers denied access to flights, ranging from €250 for flights of less than 1,500 kilometres to €600 for flights of 3,500 kms or more.
AFP