A liberalised aviation market involving the US and the EU, which would be a key driver of growth for Aer Lingus, is not likely to be agreed until next year, the chairman of British Airways has said. Current talks on a so-called "open skies" deal have "run into the ground," he said.

Martin Broughton said that there was little chance of a deal in the short term, if not longer. He said one of the key parties was the US congress.

"The Americans won't do anything before the November mid-term elections. I find it hard to see anything happening this year. But I'd prefer to see people accept that negotiations have run into the ground and its best to step back, sit back and think about the final destination," Mr Broughton said.

"I think when you step out along a road, you need to know your destination. There hasn't been any agreement on the destination. I think it's time for the two sides to step back from negotiation and decide what the destination is. For example, the US administration cannot deliver the EU's vision of what the destination should be. Only congress can deliver that."

Asked whether EU governments like the Republic should concentrate instead on agreeing their own deals with the US, Mr Broughton said this would be the wrong approach.

"One of the great successes of the EU is the open aviation area in Europe. It genuinely is a single market. Anyone can fly anywhere. Ireland has taken the maximum advantage of that. It is entirely logical that the competence for negotiating deals with other markets should be at the EU level. To go back to the national level makes it harder to continue the EU single market."

He said the limit on Aer Lingus flying into more than a handful of US airports should be changed. "I would have thought that would be part of the first stage, when you know what the end result is."

According to the Aer Lingus prospectus, Minister for Transport Martin Cullen may try to conclude a bilateral deal between the Republic and the US, if a wider US/EU deal cannot be advanced.

But Mr Broughton said the negotiating power in reality rested with the EU Commission.

He was speaking after addressing the Institute of European Affairs in Dublin on the issue of transatlantic aviation and business links.

His speech was entitled: Europe and America can play golf, but can they do business?

"It's not like we are asking for anything that is un-American. When you are think of what we are looking for, an open aviation market, it is precisely the romantic American ideal," he commented.