A major breakthrough in creating open skies competition on transatlantic flights has been hailed.
A new agreement between the EU and the US paves the way for foreigners to take major stakes in US airlines and vice-versa.
Overseas control of US airlines is capped at 25% – US airlines could gain ownership of EU carriers above the current 49.9%.
The deal has been hailed as a "major step forwards" in the so-called Open Skies liberalisation process.
EU transport ministers have to approve the latest move, which would also allow European carriers to bid for US government contracts.
US Congress also has to agree to further open up its markets, something it has not been happy to do in the past.
European Commission transport vice-president Siim Kallas said: “Both sides have agreed to increase regulatory co-operation, and remove the barriers to market access that have been holding back the development of the world’s most important aviation markets.”
Full liberalisation would be worth £11 billion and create 80,000 new jobs, according to the commission.
by Phil Davies
