EU hopes for new pact with U.S. on passenger data

Sun Oct 1, 1:23 PM ET

BRUSSELS (Reuters) - The European Union hopes to reach a new agreement with the United States on sharing air passenger data next week after failing to do so before the previous pact expired, the European Commission said.

U.S. and European negotiators were unable agree in talks in Washington on Saturday, when the existing agreement ended, but both sides said they would try to do so quickly.

A European Commission statement on Sunday said a draft agreement sent to the European side by U.S. Homeland Security Secretary Michael Chertoff on Saturday may be discussed by EU justice and home affairs ministers in Luxembourg next Friday, "in the hope of having an agreement the same day."

Under post-September 11 anti-terrorism arrangements, European airlines supply U.S. authorities with information on passengers entering the United States including their name, address, payment details and telephone numbers.

An EU court struck down the existing deal on a legal technicality in May but gave the European Union and the United States until September 30 to replace it.

In the statement, the EU Commission urged the United States to continue to apply safeguards for passenger data laid down in the lapsed 2004 agreement until a new agreement was reached in order to minimize the risk of legal uncertainty and disruption to EU-US flights.

The EU statement said Commission Vice President Franco Frattini and Chertoff were in regular contact.

"Much progress has already been made," it said. "It is in the interests of all concerned, travelers, airlines, law enforcement agencies and data protection authorities, that a new agreement is concluded as soon possible."

U.S. officials have not made clear whether they would be willing to apply the safeguards from the lapsed agreement.

Without them, said Commission spokesman Jonathan Todd, there was a risk data protection authorities in EU states would challenge airlines' right to transfer data.

Airlines fear this could leave them open to legal action.

"There is nothing to prevent the Americans from continuing to apply those safeguards," Todd said. "If they do, there shouldn't be a problem for European airlines that continue to transfer the data."

The Association of European Airlines, which represents big carriers such as British Airways, Air France and Lufthansa, has expressed concern at the possibility of "extreme" disruption to services unless a new agreement is reached.

Spokeswoman Francoise Humbert said that if airlines did not supply data required by the United States, passengers faced having to provide such information at U.S. airports with consequent queues and delays.

A spokeswoman for British Airways said the airline would not be affected even if there was a delay in reaching a new agreement as British carriers were covered by an air navigation order that allowed them to continue to share data.

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