THE TURBULENT TRAVEL INDUSTRY : U.S., Netherlands Sign ‘Open Skies’ Pact : Aviation: The agreement allows airlines from the two countries unrestricted access to each other’s airports.

The United States and the Netherlands on Friday signed a landmark “open skies” agreement that allows airlines from the two countries unrestricted access to each other’s airports, officials said Friday.

The agreement is the first under a U.S. proposal to allow foreign airlines unfettered entry to American destinations in return for similar access to other countries.

Most U.S. airlines have supported such initiatives, which eliminate a host of complex restrictions, in the past.

“This is a very significant event in international aviation,” Transportation Secretary Andrew Card said in a statement. “Not only does it cement an extremely close relationship, but it will provide a model for market-oriented aviation agreements with other countries.”

However, the agreement leaves unresolved the thorniest international deregulation issues. Those include barriers to foreign ownership of carriers and allowing foreign carriers to offer domestic service.

There are no other open sky discussions underway in Europe, although U.S. officials said they have held talks with Canada. In fact, many European nations have moved this year to restrict access to U.S. carriers.

The agreement “is a step on the path toward international deregulation, but that is a long way down the road,” said Hal Sirkin, a transportation analyst with the Boston Consulting Group.

Aviation analysts said the agreement would give an immediate advantage to the Dutch flag carrier KLM Royal Dutch Airlines, by allowing it free access to the massive U.S. market.

KLM said it was “extremely pleased” with the accord, which it said will allow it to reap fuller benefits from its 20% stake in St. Paul, Minn-based Northwest Airlines.

The Dutch carrier will become the first European airline to fly not only wherever it chooses within the United States, but also to pick up passengers for onward travel to other countries, the Dutch ministry said.

Card said the agreement embraces all elements of the U.S. definition of open skies published last month, including open entry and unrestricted capacity and frequency on all routes.

Officials did not say when the agreement goes into effect.

The deal is expected to boost Amsterdam airport’s status as an international hub. It also puts KLM ahead in a race with European carriers to grab a bigger share of the massive U.S. market, a key aim of rival British Airways, which recently signed a partnership with USAir Group Inc.

British Airways has a much bigger domestic business than KLM, so a similar accord opening British skies to U.S. competition would be more of a threat.

For the United States, the deal is seen as a potential bargaining chip to pry open more important and protected European markets, such as France, Germany, Italy and Britain.

“If they (the U.S.) can point to open skies agreements, perhaps as a blueprint, they may have a stronger position,” said Tim Coombs, analyst at brokers County Natwest in London.

In addition to its other provisions, the agreement gives the two countries’ carriers the freedom to set international fares, with governments allowed only to intervene in the event of either very high or low fares.