Olivia Mitchell (Dublin South, Fine Gael)
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Question 1086: To ask the Minister for Transport the steps he has taken to request EU permission to proceed with the more liberal Irish/US bilateral negotiated in the expectation of open skies, but now vital to Aer Lingus prospects; the response he has received from the EU; and if no response has been received, if the urgency of a decision has been communicated to them. [28734/06]

Pat Breen (Clare, Fine Gael)
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Question 1115: To ask the Minister for Transport if the transitional agreement on the Shannon bilateral arrangement with the US, negotiated in November 2005 and due to come into force from November 2006 to April 2008, will be suspended in view of the fact that it was predicated on the successful negotiation of an EU US Open Skies Agreement; and if he will make a statement on the matter. [29484/06]

Martin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 1086 and 1115 together.

In November 2005 EU and US negotiators concluded work on the text of a first-phase EU-US Open Skies agreement. The text was unanimously endorsed at the December 2005 Transport Council subject to sufficient progress by the US side on opening up ownership and control of US airlines to EU investors. The formal US process of changing its ownership and control rules was expected to be concluded in August 2006 so that a final decision could be taken at the October Transport Council. However, due to difficulties on the US side the rule-making process has been extended.

I am fully committed to the view that the liberalisation of air transport services between Ireland and the US will deliver major benefits for Irish business and tourism. I have had detailed discussions with EU Commissioner Barrot and have strongly urged the Commission to continue engagement with the US Authorities so that they can be in a position to bring forward a proposal for decision at the October Transport Council that will incorporate the Irish transition arrangements.

In the absence of progress at EU level I intend to seek to implement, in accordance with the applicable Community law, the essential elements of the transitional arrangements by way of an amendment to the Ireland-US bilateral Air Services Agreement.