EU and Poland close to signing agreement opening air transport market

Poland has agreed to liberalize plane-ticket prices on all flights to European Union countries in line with EU demands. However, it wants to make sure foreign operators do not take away market share from local operators and thus is seeking ways of limiting the number of flights foreign operators may offer before the end of 2004. According to EU representatives, the plane tickets issue is the last obstacle to signing an agreement on opening the air transport market in Poland. Poland's national carrier LOT Airlines says it is apprehensive about the agreement, as it is afraid larger foreign companies will be able to offer more competitive fares. In an attempt to protect the interests of Polish airline carriers, Poland's representatives are suggesting that for the next few years both foreign and domestic airlines should not be allowed to increase the number of seats on flights by more than 3% to 5% per year. The EU commission, under pressure from EU-based airline companies, is likely to concede. Opening of the Polish air transport market is a very tempting perspective as the agreement may lead to the creation of another large air transport market. (Rzeczpospolita, p.B1)