Aircraft noise threat to `open skies' accord

VITAL TALKS between Britain and the United States to open up the transatlantic air market will collapse unless Europe backs down over plans to ban planes equipped with US-made anti-noise kits, the US administration warned yesterday.

Rodney Slater, the US Transportation Secretary, said the future of "open skies" talks depended on European transport ministers agreeing to delay the ban on "hush kits" when they vote on Monday.

But Mr Slater, speaking after a meeting with the Deputy Prime Minister, John Prescott, said he believed ministers would back down and avert another trade war on top of disputes over bananas and beef hormones. US politicians have voted to ban Concorde unless the EU backs down.

Mr Slater said he had had "fruitful and positive talks" with EU ministers during a whirlwind tour. But he added: "We are hopeful that we can move to address issues like hush-kits in a way that will allow us to continue to address the broader and more important aviation concerns as we go together into a new millennium."

Asked whether this meant the two issues were inextricably linked, he agreed. He added: "There is a real cost here. There are the economic interests, including our airlines and manufacturers, but the real cost could be a deterioration in the relationship ... It has to be strong and go beyond those kinds of questions."

Mr Slater acknowledged the irony of two allies involved in joint bombing missions over Kosovo coming to blows over a dispute around civilian aircraft.

But he went on: "I'm cautiously optimistic and we have been given positive indications that the vote on Monday will be delayed so as to give full consideration to the issues that we have raised."

European legislation would ban ageing planes equipped with "hush-kits" that lower their noise levels. MEPs are concerned that they are ineffective at controlling air pollution since they are used on old engines.

In retaliation, the House of Representatives voted to ban Concorde flying to America. The US Commerce Department believes the rules could have a $1bn effect on the US by devaluing airplanes resold in Europe, and harming US makers of hush-kits.