EU allows mobile phone use on planes

The European Commission has approved today a regulation that sets a common standard by which passengers can safely use their mobile phones during flights. With the approval by EU regulators, airlines will be able to launch onboard mobile services later this year.

EU officials said the service will only be activated when the aircraft is at cruising altitude and will not be available during take off or landing. The cabin crew will have control over the system and will be able to switch off the onboard network, for example during night flights.

Viviane Reding, the EU's telecommunications commissioner, warned phone operators not to set rates for the service too high and urged airlines to protect passengers from excessive phone use.

Already, national regulators in Britain have said they are ready to grant licenses, and Air France, Ryanair and BMI have already launched a trial or have plans to make an in-flight phone service available.

Germany's Lufthansa, however, said Monday it does not want to introduce the service, because surveys had shown that a large majority of customers were against it.

Open Skies Agreement: airline mergers and competitive prices

The new US-European open skies rules, due to take effect in March, will create a major storm for American and worldwide carriers, analyst say. That's the case in part because only a few European airlines and handful US carriers have long dominated transatlantic routes. The agreement will allow any European or US airline to fly any route between any city in the EU and any city in the United States. US airlines will also be given the right to fly between European cities, and EU airlines will be allowed to operate direct flights between the United States and non-EU countries.

Air France-KLM and Delta Airlines have already signed a deal to share costs and revenues on North Atlantic routes. Under the agreement, Air France will give slots at London's Heathrow airport to Delta to use for flights to Atlanta and New York. The French carrier also will start a new service between London and Los Angeles.

Airline experts figure the arrangement would also start a wave of similar consolidation and joint ventures among other carriers looking to expand on the newly deregulated market. That should increase competition on transatlantic routes and help reduce costs. Although no radical effect on fares is expected, some believe ticket prices might tend to go down.

In April 2007, Ryanair confirmed it was planning to start a new airline that would operate long-haul flights between Europe and the United States. The carrier intends to start flying in 2010 to 5-6 US cities, and unlike traditional low-cost airlines, would sell both economy and premium-class tickets.

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