Open-Sky agreement could be launched still this year

The European Commission (EC) is proposing that Poland fully liberalizes its air transport market before the end of the year, rather than from the beginning of 2004, as previously planned. The EC suggests that the open-sky agreement cover 27 countries - EU members, accession candidates, as well as Norway and Iceland. If accepted such this would mean a revolution on the Polish market, as national air carrier, PLL LOT, would be exposed to tough competition and probably be forced to lower its prices. However, EC analysts claim that with its modern fleet, LOT is well-prepared to compete against carriers from other EU-aspiring countries. They also point out that li beralization of the market and lower prices would likely encourage Poles to fly much more frequently than they currently do, which could boost LOT's revenues. Increased competition would likely come from the entry of cheap airlines, such as Virgin Express or Ryanair, on the market. At present, flights between Poland and the EU are based on bilateral agreements which only allow national carriers from each country to fly to Poland and back. (Rzeczpospolita, July 20-21, p. B1) T.J.