Foreign ownership not a threat
The UK transport secretary Geoff Hoon has called for the completion of stage two of the EU-US Open Skies deal by next year.
The main objective of the deal should be "liberalising all foreign ownership in airlines."
Mr Hoon, speaking to the International Aviation Club in Washington said this would give "European and American air carriers a bigger home market and the ability to operate like any other competitive international company."
He said that both sides had accepted that the first stage of the Open Skies deal, which came into force in March 2008, was "not enough and that more was needed."
He added: "Now is the time to push ahead with stage two.
"Step two is a commitment to enhance open markets in aerospace products and related services, ending the talk of banning the use of foreign maintenance facilities and allowing a long awaited mutual recognition agreement between the EU and US to come into force."
Currently the Americans do not allow more than 25% foreign ownership of a US carrier.
Attempts to relax this rule have been successfully opposed by US Congressmen.
The views of the new Barack Obama administration are not clear on the issue.
But his party, the Democrats, have been more fervent in their opposition than other parties.
Mr Hoon told the Aviation Club that international investment was now the norm and global brands transcended national borders.
It had brought "huge social and economic benefits - so opening up investment should not been seen as a threat to aviation. Far from it.
"Regulatory systems exist which allow national authorities to impose tough requirements on airlines in safety, security, labour rights and other areas.
"These safeguards mean there is simply no prospect of aviation somehow descending into chaos if international investment is opened up.
"In other words, national ownership is no longer the only necessary means of ensuring quality in this industry."
He said were among the most capital intensive businesses in the world and needed access to capital and flexibility to serve global markets.
"So what we need is an open framework that will allow strong and efficient airlines to organise their businesses on an international basis to match their international traffic flows.
"And that's why the European Union, with full UK support, has made open investment our first priority for the next phase of the EU-US negotiations," Mr Hoon said.
The first stage of the EU-US Open Skies deal opened up London Heathrow Airport to all US and European airlines as well as allowing US carriers cabotage rights in the EU area - the right to fly from one European city to another.
The second is due to deal not only with ownership in the US but also on granting cabotage rights for European carriers in America, allowing them to fly from one US city to another.
The third set of talks on the second phase is due to start in late June in Brussels.
http://ukinusa.fco.gov.uk