US may ease global airline ownership norms

BRUSSELS: The US proposed a deal on Tuesday to sweep away a global ���spider���s web��� of airline ownership rules, taking the EU by surprise as it seeks a transatlantic deal for its airlines to buy their US rivals. US Deputy Assistant Secretary of State for Transportation Affairs John Byerly said Washington had an open mind on Europe���s long-standing demand to ease American restrictions on foreign ownership of US airlines.

But Byerly, the chief US negotiator in the ���open skies��� talks with the EU, said the US would seek a far wider deal by pledging to forgo access restrictions on airlines from more than 60 nations, based on the nationality of their owners, a deal which could be expanded to other countries in the future.

Such a move would involve ���dismantling the sticky spider���s web of restrictions in bilateral aviation agreement that form a huge impediment to expanded cross-border investment in, and management of, airlines around the world,��� he said in a speech.

Under those rules, which are starting to be relaxed, a country allows access to airlines from third countries only if they are owned and controlled by nationals of that same country, something that has impeded cross-border airline takeovers. The United States and the EU will open talks on Thursday in Slovenia on a second phase of the liberalisation of the transatlantic aviation market, known as ���open skies���. The EU���s chief negotiator said he was surprised by the US proposal.