European Union ministers have agreed to expand the negotiating powers of the Commission.

The Commission won a mandate to negotiate aviation deals with the US on behalf of the European Union as a whole.

Forum Response: Virgin Atlantic

Sir Richard Branson, chairman of Virgin Atlantic, told ePolitix.com: "This is great news for consumers on both sides of the Atlantic.

"Virgin has agreed for nearly a decade now that a free trade area between the whole of Europe and the whole of the United States would be the best thing for the consumer, competition and sorting out the basket case airlines on both sides of the Atlantic.

"It also brings forward the day when Virgin will be able to launch a low cost airline in the United States, which we plan to do as soon as possible."

Forum Response: British Airways

Rod Eddington, chief executive of British Airways, said: "The aviation industry is over protected and over regulated. This is an historic decision that paves the way for a truly liberalised European air transport industry and the creation of a common aviation area covering Europe and the US.

"It creates the opportunity to sweep aside the archaic economic and regulatory framework which has held our industry back. If we can be released from the shackles of national sovereignty and historic ownership rules, we can look forward to the same freedoms as other business sectors such as cross border mergers, acquisitions and joint ventures.

"This will lead to greater competition and innovative air services which will benefit the consumer and the industry. In the 1980's the United States deregulated its domestic market. In the 1990's Europe liberalised its single market. Both created tremendous growth in air travel and choice for the flying public. If we can now bring these two markets together we will be able to truly modernise our industry and create a vibrant, competitive market.

"This will help remove the uncertainty that has existed over the status of our current bilateral entitlements since the ruling by the European Court of Justice last year."