NEWS: EU Open Skies...Maybe

The United States continues to grind out talks with the EU on a new "open skies" policy and the latest incarnation appears to be on hold while the two sides fall back and give it a reality check. There are some big terms to be ironed out, not the least of which is the EU's desire to see foreign ownership restrictions of US Airlines eased. On the US side of the pond there are several big airlines that would love to see the deal go through. Click Read More!.

No doubt Richard Branson, head of everything "Virgin", would be delighted if the US would ease up on foreign ownership restrictions. He has struggled mightily to wangle the right financing packaging for his planned US airline, Virgin America. He's close but I wonder if he might drag his feet a bit to see if the EU can swing some better terms for him.

"Open skies"is an important deal for the big US Airlines who feel that profit margins are better on the long haul flights. They would like to expand in that market to shore up their bottom lines. Delta Airlines is especially interested having been locked out of the coveted Heathrow market while watching American Airlines and United Airlines operate there via rights purchased from TWA and Pan Am. Its noteworthy that Glenn Tilton, President of United Airlines, has also come out in favor of an open skies policy.