The open skies agreement between the European Union and the US will now apply to Iceland and Norway even though the countries are not EU members.

Iceland and Norway today formally signed an aviation agreement that extends the scope of the EU-US air transport agreement to include them after EU transport ministers earlier this year endorsed their inclusion in the open skies negotiations.

Their inclusion brings to 29 the number of nations involved in second stage open skies talks with the US.

Iceland and Norway are participating in the second stage discussions as observers.

Negotiators are tasked with sorting through several thorny issues including cabotage, foreign ownership and the environment.

The sides have until November 2010 to reach an agreement or either party can withdraw traffic rights secured in the first phase of open skies that became effective 30 March 2008. Transatlantic restrictions at EU and US airports, notably London Heathrow, were lifted under the first stage.

"I welcome the accession of Iceland and Norway to the EU-US aviation agreement," European Commission vice president in charge of transport Antonio Tajani says in a statement. "The EU-US air transport agreement has brought substantial benefits for passengers, airlines and airports on both sides of the Atlantic. The extension to Iceland and Norway will further increase these benefits."

Source: Air Transport Intelligence news