Senior peers have urged ministers to allow the European Commission to negotiate a new aviation agreement between Britain and the US.

The Lords European Union committee said the Brussels authorities should be given a mandate to agree a fully liberalised EU-USA aviation market

A spokesman for the Department for Transport told ePolitix.com: "The government welcomes the committee's conclusion that the goal for member states and the Commission should be full liberalisation of EU/US aviation services.

"We believe that a fully liberalised North Atlantic Open Aviation Area would bring significant benefits to UK consumers and UK airlines alike.

"We are hopeful that agreement may be reached at the June [EU] Transport Council on how to negotiate aviation agreements in the light of the judgement of the European Court of 5 November 2002.

"This could include a mandate for the European Commission to negotiate on behalf of the Community, although any deal would depend on member states being satisfied that all issues outstanding from last year's European Court judgements have been properly addressed."

Forum Response: Virgin Atlantic

A spokesman for Virgin Atlantic told ePolitix.com: "Virgin Atlantic very much welcomes the committee's report. Virgin has been lobbying for the sort of liberalisation that the committee has recommended for some time now.

"As the committee has said, the European Court of Justice judgments in the so-called open skies cases have presented an historic opportunity to change the nature of civil aviation away from a highly regulated market to an open and liberalised one. There can be no logical reason why aviation should not be treated like any other mature international industry.

"We therefore hope that the government and the European Commission will heed the report's recommendations and move quickly to the granting of a mandate for full air services negotiations between Europe and the United States with the sole aim of securing a fully liberalised aviation market between these two trading blocks."

Forum Response: British Airways

A spokesman for British Airways told ePolitix.com: "BA welcomes the conclusions of the House of Lords committee, and has long advocated EU-level negotiations with the USA to produce a fully liberalised aviation area. Rod Eddington spoke on this subject at the Wings Club in New York on 17 April 2002.

"We are very hopeful that the council of transport ministers on June 5 will adopt a policy similar to that suggested by the House of Lords and grant the EU Commission a mandate to start negotiations with the USA, together with other arrangements to allow normal business to continue with other third countries."