European airlines are to meet in Brussels today to assess the latest US offer aimed at breaking the deadlock in negotiations over liberalising air services between the US and the European Union.

It is understood that the US proposal would allow European airlines limited rights to develop franchised cargo and passenger operations in the highly protected US domestic market.

According to the draft US proposal given to the European Commission late last week, European airlines could exercise "marketing rights by acting as freight forwarders and tour operators with respect to air transportation" in the US.

Any such service would still have to be operated by a US airline using its own aircraft, however. It would be under the control and ownership of the US carrier but a European airline could use its brand and livery for aircraft and crew on the service.

The offer will confirm fears in Europe that any US offer will fall far short of the open aviation area sought by EU member-states.