The European Court of Justice said today eight European Union states had broken Community legislation by striking bilateral "open skies" air transport agreements with the United States.
The European Commission (EC) opened the case against the states four years ago after being snubbed by EU governments over its request to negotiate an EU-wide pact on transatlantic air traffic rights with the United States.
The EU's highest court said in its ruling that EU states did not have the right to strike agreements on fares, rates and computer reservation systems within the bloc with non-EU airlines.
Industry executives have said a ruling in favour of the EC would help further the EU executive's ambition to negotiate a single, overall EU-US transatlantic air deal and boost integration of the European airline industry.