The Bush administration has pulled out a plan giving more freedom to European aviation industry to invest and manage control in the U.S airlines. Transportation Secretary Mary E. Peters announced withdrawal of the proposal to expand foreign management control of U.S. carriers Tuesday.
The latest development can derail U.S. talks with the European Union to allow both sides to fly with little or no restrictions.
Peters said in a statement:
The department needs to do more to inform the public, labor groups and Congress about the benefits of allowing more international investment.
However, transportation secretary gave an indication that the decision should not be considered as a final mark of bilateral negotiations.
The proposed ‘Open skies’ aviation treaty would boost air travel, lower airfares, create jobs and boost investment in U.S. carriers.
Industry watchers say that more liberalization to EU airlines would cast shadow over national security and loss of jobs for Americans in aviation sector. Jacques Barrot, vice president of the European Union’s Commission in charge of Transport, got disappointed with the decision. In his written reply, Barrot called ‘the scrapped proposal “an essential element” to concluding a new aviation agreement.’
Although, he did welcome the proposal that will send U.S. representatives to Brussels in the early next year for further possibilities in this context.
