The Agreement provides clear commercial advantages, including greater
access for EU airlines to the "Fly America" programme. The United
States and Europe have committed to the goal of removing remaining access
barriers and will review progress towards this objective on an annual basis.
Additional commercial rights will be exchanged in the future subject to
following legislative change. See below:
• Reciprocal liberalisation of airline
ownership and control. Currently, foreign ownership in US airlines is limited
to 25 per cent of voting rights. Upon legislative change in the US, the EU will
reciprocally allow majority ownership of EU airlines by US nationals.
• Airport noise-based restrictions.
Subject to legislative changes in the EU concerning the process for introducing
noise-based airport restrictions, EU airlines will gain additional rights to
fly between the US and a number of non-European countries. Furthermore, a
number of obstacles for EU investment in third country-airlines will be
removed. Similar rights will be available for US airlines when the US laws
allow EU majority ownership of US airlines.
The negotiators also achieved significant improvements in terms of
• The agreement will strengthen
cooperation on environmental matters by requiring the compatibility and
interaction of market-based measures (such as emission trading schemes) to
avoid duplication; by promoting greater transparency for noise-based airport
measures; and by enhancing green technologies, fuels and air traffic
management. This cooperation is key to making international aviation more
• For the first time in aviation
history, the agreement includes a dedicated article on the social
dimension of EU-US aviation relations. This will not only ensure that the
existing legal rights of airline employees are preserved, but that the
implementation of the agreement will contribute to high labour standards.
• The agreement will raise the already
high level of cooperation on security to better allocate resources at
threats to the aviation system by promoting maximum mutual reliance on each
other's security measures as well as swift and coordinated responses to new
• The agreement further extends the role
of the EU–US Joint Committee, the body that monitors the implementation
of the Agreement and coordinates the various work streams of regulatory
cooperation. The new rules will reduce red tape (e.g. by mutual recognition of
each other's regulatory decisions) and avoid the wasteful duplication of
resources (e.g. joint safety initiatives, one-stop security, facilitation of
The European Union and the United States' markets are the largest aviation
markets in the world. Together, they represent approximately 60 per cent of
global aviation. The economic benefits associated with the implementation of
this second stage agreement have been independently estimated to be equivalent
to the transatlantic benefits to be expected from a successful conclusion of
the Doha round of trade. Following signature of the agreement, the consent of
the European Parliament and ratification by all Member States will be necessary
for its formal entry into force.
The potential economic benefits of removing the barriers to the EU–US
transatlantic market are very significant (Booz Allen Hamilton, January
• In economic terms, it could be worth
up to 12 billion euro in economic benefits and up to 80,000 new jobs (spread
more or less equally between the US and the EU).
• It would create the possibility of an
additional 26 million extra passengers on transatlantic flights over a period
of five years This compares with current annual traffic of just under 50
million (2007). At the end of the five years, this will mean that the market
will be 34 per cent bigger with the agreement than without the agreement.
• By eliminating the bilateral
agreements and their restrictions on traffic rights, we could envisage a
reduction in the cost of tickets for companies and private customers, with
consolidated economic benefits of between 6.4 and 12 billion euro over a period
of five years.
The cargo market would see growth of between one and two percent.
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Please note: all amounts expressed in sterling are for information purposes