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The 30-year war may finally be about to come to an end. Brussels has taken over the negotiations from Whitehall, and the vexed Heathrow problem could be solved within a fortnight as part of a wider deal that will bring open skies between Europe and America.

The deal would remove any restrictions on flights to America from Heathrow — and any other European airport. It also holds out the prospect of scrapping the arcane system of treaties that now govern flights and the ownership of airlines in most countries..
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But the proposed Europe-US agreement is extremely controversial, particularly among UK airlines. BA and Virgin Atlantic oppose it, saying that what is being offered by America is a long way from true open skies, and that the big prize — access to Heathrow — is being given up for a song.
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Last week the US Department of Transportation confirmed that while restrictions on foreign ownership would not be relaxed — foreigners are not allowed to own more than 25% of the shares of a US carrier — it planned to relax the interpretation on the rules of control.

In the future, as long as American citizens remained in charge of key aspects of airline operations, such as safety, foreigners would be allowed control.
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Continental Airlines was vociferous in its rejection of the plan, pointing out that only two years ago Congress specifically changed the law to prevent “actual control” of US airlines by foreigners. “This attempt to change the law outside the legislative process will not withstand judicial scrutiny,” said a Continental spokesman.

BA and Virgin said the concession did not go far enough, and that a genuine open-skies agreement would require the abolition of limits on ownership and control. ...