European air passengers look set to enjoy cheaper transatlantic flights and a greater choice of routes under a landmark aviation deal with the United States that was formally backed by EU transport ministers in Brussels today.
The open skies agreement will allow EU airlines to fly from any city in the 27-nation bloc to any city in the United States and vice versa.
The pact - which is intended to throw open transatlantic air travel to more competition - received the unanimous backing of the 27 ministers.
But, at Britain's request, the EU sought a five-month delay in implementing the deal so it would take effect in March 2008 instead of October this year.
Aer Lingus, which serves four US cities - Los Angeles, New York, Boston and Chicago - is set announce the immediate addition of three new routes to San Francisco, Orlando and Washington (Dulles) tomorrow.
Minister for Transport Martin Cullen heralded the deal, saying it would liberate Irish and other European carriers to inaugurate new services potentially to any city in the US over time.
Mr Cullen said current restrictions on flights in and out of Ireland, including the Shannon stopover, will now be phased out.
"The deal is of great political and economic importance. The fact that everyone in the council [of transport ministers] has been able to welcome the outcome is to be commended," Transport Commissioner Jacques Barrot said in a statement.
"I am delighted to have piloted this agreement to its destination with all passengers still on board."
Britain had sought concessions for London's Heathrow airport, Europe's busiest hub, and some firm assurance that Washington will in the future allow foreign airlines to own and control US carriers.
Proponents say open skies would boost competition, increase flight frequencies, reduce fares and create jobs on both sides of the Atlantic. But Britain was reluctant to lift restrictions at Heathrow, which favour British Airways (BA) and Virgin Atlantic, without getting more rights to invest in US carriers.
Industry sources said yesterday that London also wanted an automatic termination of the deal's contents if talks for a second stage - when the EU will push for greater ownership rights of US airlines - are not in full swing by 2010.
Apart from BA, which stands to lose lucrative market share at Heathrow, European and US airlines are largely supportive.
"We welcome the agreement and hope that it's approved," said Anthony Concil, spokesman for airline industry group IATA. "It's not the great leap forward that's going to fundamentally change the industry, but it's a step in the right direction, so let's take it."
Currently British Airways, Virgin Atlantic, American Airlines and United Airlines are the only carriers allowed to fly transatlantic routes through Heathrow.
The new rules would abolish those restrictions but would not create extra takeoff and landing slots at the busy hub.
US rules limit foreign investment in US carriers to 25 per cent of voting rights, whereas US companies can control up to 49 per cent of EU carriers - a key sticking point for Europe.
The new deal would give European companies the right to own more than 50 per cent of non-voting equity in US carriers and allow the EU to limit US investment in EU airlines to 25 per cent of voting shares.
Shares in European airlines - including Aer Lingus, British Airways and Spain's Iberia - rose dramatically on Tuesday on speculation the deal would finally be signed after four years of EU-US talks.