European ministers may demand the European Commission make fresh proposals to solve an impasse with the United States over an aviation agreement after Washington dropped a key element, EU President Finland said last night.
The United States withdrew a proposal yesterday to ease restrictions on overseas investment in US airlines, a central demand from the European Union in talks toward an "open skies" pact to liberalise trans-Atlantic aviation.
EU transport ministers, meeting in Brussels next week, will be updated by the Commission on the state of play of a deal with US negotiators.
The Minister for Transport Martin Cullen warned that Ireland was not willing to wait forever for the EU and US to agree an open skies policy. Speaking on Morning Ireland Minister Cullen said: "Ireland's position is clear. We are not going to accept a long-fingering of this."
The Minister was speaking in Brussels after a meeting of EU transport ministers. "We have got to get in place an agreement that was supposed to have kicked in last October," he added. "There will be a face to face meeting in January, and that will tell a lot," he said.
The Minister added that Ireland was prepared to go it alone and seek direct one on one talks with the US if talks with the commission don't bring about a new policy. "If we can't get a deal within the European family Ireland feels it cannot be totally disadvantaged. 15 countries already have open skies in the EU," Mr Cullen said.
The Minister said that an uneven playing field was unacceptable and that Ireland may enter into a new bilateral agreement with the US. "This is a huge opportunity for Ireland. There are 22 new possible locations for direct flights into the country," he added.
The talks are seen as crucial for Aer Lingus to earning more money by developing its long haul service to America.
The two sides reached a tentative deal last year to expand aviation service and boost airline competition, but the deal was put on hold while Europe waited for Washington to ease its limits on foreign investment in American carriers.
International investors in US airlines are bound by a World War Two-era rule that gives them virtually no say in the day-to-day or strategic operating decisions of any carrier they take a stake in. Overseas interests are limited to 25 per cent of the voting stock in US airlines.
US Transportation Secretary Mary Peters dropped the proposal, because it did not have wide support in Congress and among labour groups, who say the plan could compromise security and cost jobs.
Meanwhile, Mr Cullen today announced the conclusion of an open skies agreement between Ireland and Singapore.
Mr Cullen said the deal, which comes into effect next year and which will allow direct flights between Ireland and Singapore, has the potential to further develop new trade and tourism markets between the two countries.