EU transport ministers on Tuesday said they would back one more attempt by the European Commission to negotiate an open skies agreement with the US.
Last week, the US suspended talks because of opposition to relaxing restrictions on foreign ownership of US-based airlines, in the aftermath of a protectionist Democratic Party win in the November Congressional elections.
Americans can buy up to 49% of European airlines, but Europeans can buy only a maximum of 25% of a US carrier.
The European Commission plans to meet the US officials in January, and may offer to agree a deal without seeking changes to the ownership structure of airlines. That would be good news for Aer Lingus, which takes delivery of two new Airbus planes in March and wants to expand its flight schedule to North America.
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 the Morning Ireland radio programme, Cullen said: "Ireland's position is clear. We are not going to accept a long-fingering of this."
"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," 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 grow long-haul earnings by developing its service to America.
The Bush administration supports a proposed agreement that would, among other things, lift restrictions on flying between Heathrow, Europe's busiest airport, and the US . British Airways Plc, Virgin Atlantic Airways, UAL Corp.'s United Airlines and AMR Corp.'s American Airlines are the only carriers currently allowed on that route.
``We don't believe the new rules would go far enough anyway,'' said Laura Goodes, a spokesperson for British Airways. ``There would still be strict controls on what overseas citizens could do.''
The Open Skies treaty would allow airlines to fly between any European Union city and the US. There would no longer be restrictions on prices or the types of aircraft that carriers can use on trans-Atlantic routes.
Meanwhile, Cullen today announced the conclusion of an open skies agreement between Ireland and Singapore.
The Minister 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.
