The European Court of Justice has ruled that eight EU states broke community legislation by striking bilateral 'open skies' air transport agreements with the US.
The European Commission launched 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 US.
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 union with non-EU airlines.
Industry executives have said a ruling in favour of the Commission would help further the EU executive's ambition to negotiate a single, overarching EU-US transatlantic air deal and boost integration of the European airline industry.
The European Commission said the ruling showed an urgent need for talks with the US on forging an EU-wide transatlantic aviation pact.
