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EU-WIDE AVIATION PACT WITH US GIVEN THE GO-AHEAD

BRUSSELS - The EU-wide "open skies" agreement between the US and the European Union will replace the current bilateral deals between the US and individual countries and allow European airlines to fly to the US from any European airport and vice versa. Under the current bilateral agreements, European airlines can only fly to US destinations from their home country as Member States restrict international traffic rights to the national flag carriers. In November, 2002, the European Court of Justice stated that bilateral agreements were in breach of EU laws. Airline experts believe that a EU-wide "open skies" agreement will lead to a consolidation of Europe's airline industry and improve its competitiveness. The Commission has said it hopes that a deal with the US would create an Open Aviation area, which would account for more than 60% of all world air traffic.

APL EXTENDS CALIFORNIA, LATIN AMERICA FEEDER SERVICE

OAKLAND - APL Ltd. has extended its Pacific Coast container transportation feeder service that links California, Mexico and the northern zone of Central America southward to El Salvador. With weekly calls at Acajutla in El Salvador added from June 10, the move reflects El Salvador's growing participation in the international garment and refrigerated commodities markets, said Manny Fernandez, head of APL's Latin America market, based in Miami. The original service, known as the Mexico-Central America Express (MCX), was launched in December. It connects at Los Angeles with several of APL's trans-Pacific services. Until the service extension, APL provided service to the El Salvador market by combining its ocean service to Puerto Quetzal, Guatemala, with overland (trucking) service to El Salvador. Honduras and Nicaragua will also benefit from faster, more reliable service because a direct call at El Salvador reduces the number of border crossings and the length of the overland segments required to serve those two markets. Transit times to Los Angeles from Acajutla, which is located near the capital city of San Salvador, will be six days, a two-day reduction as a result of the new all-water call. Transit times to Los Angeles from Honduras and Nicaragua will similarly be shortened by two days. The extended service, which uses two modern containerships operated by APL, rotates weekly from the Port of Los Angeles to the Mexican port of Manzanillo to Acajutla, El Salvador, and then northbound to Puerto Quetzal, Guatemala. On a fortnightly basis, it also makes a northbound call at Mexico's port of Salina Cruz.

ADMINISTRATION SEEKS BOOST IN FOREIGN AIR SHARE

The Bush administration is asking Congress to raise from 25% to 49% the permissible level of foreign ownership of a US airline's stock to give the airlines more access to foreign capital. More liberalization of the world's air transportation systems would ensure greater levels of global trade and economic growth, said Transportation Secretary Norman Mineta, U.S. transportation secretary, adding that the change of law would be consistent with European Union (EU) airline ownership rules, he said. Liberalization produces public benefits not possible under "restrictive" regulations, Mineta told a recent meting of the International Air Transportation Association (IATA) in Washington. He also said a broad, multilateral or regional framework is needed to replace the current "patchwork" of aviation agreements and that liberalizing ownership rules - provided there are clear lines of responsibility for safety and security -- was the most discussed issue at a meeting of the International Civil Aviation Organization in March.  The secretary said he was confident that airlines will "turn the corner" and recover from the economic troubles that have affected the world aviation industry because of concerns about terrorism, the war in Iraq and severe acute respiratory syndrome (SARS).  He said increasing the aviation industry's capacity is necessary to avoid the type of congestion and delay problems that occurred in 2000.  Some 5% of the world's gross domestic product (GDP) can be attributed to aviation activity, he added.

AMERICAN AIRLINES CARGO EXPANDS EXPRESS SERVICE

FORT WORTH - American Airlines Cargo has expanded its newest express cargo product, Expeditefs, making it available from all of its cargo locations in Central America, Mexico and Venezuela. The Expeditefs product provides an express, flight-specific, guaranteed service for freight throughout American's worldwide cargo network. Now, freight from Caracas, Venezuela; Belize City, Belize; Cancun, Guadalajara and Mexico City, Mexico; Guatemala City; Panama City, Panama; San Salvador, El Salvador; San Pedro Sula and Tegucigalpa, Honduras; Managua, Nicaragua; and San Jose, Costa Rica, can make faster transfers at American's gateways, saving up to a day in international transit.

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