Belgium calls for single EU air treaty with U.S.
STRASBOURG, France, Nov 15 (Reuters) - Current European Union president
Belgium said on Thursday the European Commission should have the mandate
to negotiate a single air treaty with the United States on behalf of the
15-nation bloc.
Speaking at the EU Parliament, Belgian transport minister Isabelle Durant
said Europe's battered airlines were being hit harder than their U.S.
counterparts after September 11.
The European sector was more fragmented and there were fewer strategic
alliances, she said.
She also said the bloc's aviation industry should be given the chance
to consolidate, a move which would potentially involve some relaxation
of EU merger rules.
Several European airlines have separate deals with the United States to
fly intercontinental routes.
The Commission-the EU's executive-considers this a breach of EU rules
for its internal market and and has taken Britain, Germany, Sweden, Denmark,
Belgium, Austria, Finland and Luxembourg to court over their intercontinental
agreements.
" We should give the European Commission a clear mandate to negotiate
with third parties, " Durant told the EU's assembly while assessing
the current state of Europe's airlines.
" It is vital for the EU to speak with one voice. "
Her suggestion was immediately criticised by some EU members of parliament,
who said such strategy would only bear fruit at too late a date.
" By the time that happens there will not be a single civil aviation
company left, " British socialist parlamentarian Brian Simpson told
the assembly.
" What we need is action now. We need direct action so that the industry
can survive. "
Europe's airlines are witnessing their worst crisis in decades. Belgian
airline Sabena has been declared bankrupt, the first state-owned national
carrier to go bust in Europe, and others are difficulty.
EU governments have already agreed short-term measures to help airlines
withstand the crisis, but contrary to the United States, cannot give direct
subsidies to their national carriers due to strict EU rules.
Durant said EU governments had respected the bloc's state-aid rules, but
suggested some problems could be addressed by promoting more consolidation
in the sector.
" We ought to allow EU airlines to be better equipped to compete
against U.S. rivals, " she said.
" We have to try and give the chance to the sector to restructure
itself by focusing on large alliances. Some form of consolidation is necessary.
"
06:13 11-15-01
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