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Progress Seen on Air Routes

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From Bloomberg News

European Union and U.S. regulators said Friday that they had made “substantial progress” in talks to end airline-route monopolies in the $18-billion transatlantic market and may reach an agreement next month.

The European Commission and U.S. government aim to allow EU airlines to make transatlantic flights from any of the EU nations instead of from just their home country. They also want to scrap rules letting only British Airways, Virgin Atlantic Airways Ltd., United Airlines and American Airlines fly between the U.S. and London’s Heathrow airport.

Britain, which accounts for 40% of the transatlantic airline market, led opposition that killed a draft “open skies” deal in June 2004 and kept alive route curbs ruled illegal by the EU’s highest court in 2002. The commission resumed talks with the U.S. this week in a fresh bid to implement the court decision.

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“The delegations made substantial progress on the key elements” and aim “to reach early and successful results,” according to a joint statement released in Brussels.

The next round of talks is due to start Nov. 14, and any draft accord to end the dispute that dates back to the 1990s would need the approval of European transport ministers.

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