EU sees 'Open Skies' talks with US finished by 2010

By Marja Novak

BRDO, Slovenia, May 16 (Reuters) - The European Union expects to complete by 2010 talks with the United States on liberalising transatlantic aviation, the bloc's chief negotiator said on Friday, paving the way for increased competition.

"I hope that ... 2010 could be the year when we finalise the negotiations but it will depend a lot on technical work," Daniel Calleja Crespo, head of the European Commission's Aviation Directorate, told reporters after talks in Slovenia ended.

The second round of "Open Skies" discussions, which started on Thursday, builds on an agreement which entered into force in March, allowing airlines to access any U.S. city from any point in the EU and vice versa.

The move promises to increase competition between carriers, could cut ticket prices and may eventually pave the way for transatlantic mergers to create the first global airlines.

The United States surprised EU negotiators on Tuesday by saying it would seek a wider deal by pledging to drop access restriction for airlines from more than 60 nations.

"We think that's in our mutual interest because we have a leadership role. There are no two areas of the world that have done more to liberalise aviation," said John Byerly, U.S. Deputy Assistant Secretary of State for Transportation Affairs.

"We think we can lead the world and when you lead you have to bring the rest of the world along," said Byerly, who is the U.S. chief negotiator.

But the EU said it wants to complete the talks with Washington before inviting others on board.