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United States-European Union Air Transport Agreement Of April 2007

With the development of aircraft that were able to cross the Atlantic, the air transport of passengers and goods became a lucrative business. After the end of World War II, the United States and Great Britain; Two countries that owned such aircraft at that time realized that they had to protect their still young domestic air transport markets and regulate flights on the other side of the Atlantic, signed on February 11, 1946 a bilateral agreement on air services on the island of Bermuda (hereinafter referred to as the Bermuda I Agreement). This agreement, very restrictive at the request of British negotiators, who feared that US calls for a “free for space” agreement would lead to a total dominance of American airlines, then financially and operationally superior, in the global air transport industry, was the world`s first bilateral air transport agreement. After approval by the U.S. Senate, the agreement is expected to take effect on March 30, 2008. Despite other benefits, the agreement is expected to increase transatlantic passenger traffic by 34%, generate up to $16 billion in economic benefits over five years and create a total of 80,000 new jobs on both sides of the Atlantic, according to news published on 2nd March by the European Commission. (2) 1. The Parties share the objective of continuing to open up market access and maximising benefits for consumers, airlines, workers and communities on both sides of the Atlantic, including facilitating investments to better reflect the realities of a global aviation industry, strengthening the transatlantic aviation system and creating a framework that will encourage other countries to open up their own air transport markets. The Parties shall enter into negotiations no later than 60 days after the date of provisional application of this Agreement, with the aim of rapidly developing the next stage. 5. Any airline may carry out international air transport, without the type or number of aircraft operated changing at any time; provided that: (a) for U.S.

airlines, with the exception of all-cargo services, the carriage is part of a service that serves the United States and (b) for Community air carriers, with the exception of (i) combined transportation services and (ii) combined services between the United States and a member of the ECAA at the time of signature of this Agreement, transport forming part of a service serving a Member State. 1. Any dispute concerning the application or interpretation of this Agreement, with the exception of matters arising from Article 20 or Annex 2 which are not resolved by a meeting of the Joint Committee, may be submitted to a person or body for decision, with the agreement of the Contracting Parties. If the parties do not agree, the dispute shall, at the request of one of the parties, be arbitrated in accordance with the procedures described below. 4. promote compatible regulatory approaches for agreements and other cooperation agreements, through a better understanding of analytical methods, techniques, including the definition of the relevant market(s) and the analysis of the competitive impact and remedies applied by participants in their independent competition investigations. . .

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