In Slovenia this week, the United States and the European Union opened up a second round of talks on their joint 'Open Skies Agreement.'

The result of the previous round was the beginning of the liberalization of transatlantic air travel. This removed many barriers for foreign airlines operating in the US and EU. Now, regardless of country of origin, any airline can fly to any city in the respective countries. For example, if Aer Lingus really wanted to, they could run a direct flight from South Bend Indiana to London, or Paris or any airport in Europe and any airline could do so vice versa.

This has significantly opened up transatlantic air travel and will greatly increase completion for transatlantic fares. Now, with more airlines competing, it will drive the price of transatlantic fares down. This will be great for travelers on a budget.

The goal of the second round of talks that were started today, is to expand the agreement into allowing foreign airlines to operate domestically in the US and EU. For example, allowing a British Airways flight between Chicago and Atlanta. The United States is very leery of this, as they think it will harm domestic airlines who will be open to competition and may not be able to survive.

If these plans go through, expect more mergers and acquisitions in the airline industry. We could conceivably see the founding of a truly global airline that can serve anywhere in the world.

The competition will only good for consumers. Especially consumers looking for a good deal on transatlantic fares. I've been monitoring the transatlantic fare prices over the past few months and I've already noticed fares going down. Even summer fares to London are not that expensive right now.

Let's hope the powers that be continue to works towards transatlantic airline deregulation.