March 26, 2007: The Open Skies deal is on. The agreement between United States and the European Union targets to liberate the aviation market, says a report.

As per the deal, EU airlines will now fly from any European city to any American city, regardless of their home country, and remove restrictions on US airlines flying to EU airports, said the report. Expected to bring in new and valuable benefits to air travellers and communities on both sides of the Atlantic, the agreement may also result in lower airline fares and increase yearly traffic between the EU and the US by around 26 million passengers, the report added. A study on the deal also has stated that consumer savings would benefit a $16 billion spread over a period of five years, and generate at least 72,000 new jobs.

The Open Skies agreement is akin to knocking down regulatory barriers hand is expected to provide growth opportunities within the aviation network of the US and the EU and enhance the freedom of American fliers to choose where and when they travel. The deal is also seen as boasting of great political and economic importance and is good for passengers and good for airlines. The accord will be delayed from this October to March 2008 as EU ministers have agreed to this upon Britain’s request.

Meanwhile, the British Airways has urged the Tony Blair government to stand by its right of automatic termination of traffic rights granted in the new air treaty endorsed between the EU and US if America drags its feet on negotiating further liberalization, the report added.