Roundup: European airlines in legal limbo as EU, U.S. miss deadline to clinch deal

European airlines found themselves in a legal limbo after the United States and the European Union ( EU) failed to reach an agreement on transatlantic passenger data transfer by the Sunday deadline.

The passenger name records (PNR) agreement, reached by the EU and U.S. in 2004 to allow airlines to transfer passengers' personal data to U.S. authorities, expired on Oct. 1 as was ordered by the EU's highest court.

LEGAL DILEMMA

A European Commission official confirmed Monday that airlines in Europe are legally responsible and could be sued by passengers if they continue to transfer data to U.S. authorities, unless the national legislation of the EU country concerned states otherwise.

However, under U.S. law, airliners could be barred from landing on U.S. soil if the information about the passengers has not been transferred.

So far, airlines are continuing to provide the information needed in order to enter the U.S.

Britain has introduced interim measures to fill the legal void. It remains to be seen if other EU countries will follow suit.

The European Court of Justice in May ruled the 2004 deal illegal due to incorrect legal basis. It gave the EU until October 1 to negotiate a replacement deal with the U.S.

The expired deal obliged air carriers to forward passengers' phone numbers, credit card details, family links, addresses and other information to the U.S. authorities 15 minutes before the departure of the flight.

The deal has sparked intense debate in the EU as critics say it is a serious infringement on the privacy of European citizens, and safe use of the personal data may not be guaranteed.

NEW DEMANDS FROM US

A European Commission spokesman said Monday that talks are ongoing between the EU and the U.S. despite a "temporary breakdown " on Saturday.

He said the United States has given EU negotiators a draft agreement "with new elements," which had been initialed by U.S. Homeland Security Secretary Michael Chertoff, who is responsible for the deal on the American side.

But he refused to be drawn on what "new aspects" have been required by the U.S. in its proposal, citing "its confidential and restricted nature."

Despite the evident failure to reach an accord, the European Commission spoke of a "constructive atmosphere", noting "much progress".

The U.S. proposal has been sent to EU Justice Commissioner Franco Frattini and Finnish Foreign Minister Erkki Tuomioja, whose country currently holds the EU presidency.

The proposal will be discussed intensely this week, first at a meeting of diplomats from EU member states and then a meeting of EU commissioners.

Finally, on Friday, EU justice and home affairs ministers will examine the proposed agreement at a meeting in Luxembourg, "in the hope of having an agreement with the USA as soon as possible," the commission spokesman said.

UNCERTAINTY

The Association of European Airlines (AEA), representing some 31 major airlines including Air France, British Airways, KLM, Lufthansa, SN Brussels and Virgin Atlantic, expressed "cautiously optimism" on a future deal and does not expect chaos at EU airports.

"Our airlines are subject to conflicting regulatory requirements from opposite sides of the Atlantic -- an untenable situation for airlines and passengers alike," said AEA Secretary- General Ulrich Schulte-Strathaus.

But he said EU negotiators had assured the AEA that its airlines "will be able to satisfy the legal requirements of both the EU and the US."

Following the failure to obtain agreement by the deadline of 30 September,the European Commission urged the U.S. to continue applying safeguards for PNR data established in the now-lapsed 2004 agreement.

However, the commission admitted that by Monday it had not yet received written confirmation that the U.S. would honor data protection safeguards contained in the 2004 agreement.

A statement by U.S. Homeland Security Secretary Michael Chertoff over the weekend also caused further uncertainty.

Chertoff said he was pleased to initial a "draft formal EU-U.S. agreement." "As we await the final ratification of the draft agreement, we expect that planes will continue to fly uninterrupted and our national security will not be impeded," said Chertoff.

The European Commission stressed Monday that the EU had not initialed any agreement.

The U.S. emphasized its "legal and moral obligation to protect its borders". Chertoff cited the recently uncovered terrorist plot, concerning flights from the United Kingdom to the United States, as a justification of "free and open information sharing."

"The transfer of PNR data by air carriers to our department is an absolute necessity to safeguarding air travel and public security," said Chertoff.

Source: Xinhua