[Clips] Airlines in a Panic: Deal on Fliers' Data Is Ruled Illegal

--- begin forwarded text Delivered-To: rah@shipwright.com Delivered-To: clips@philodox.com Date: Wed, 31 May 2006 18:21:30 -0400 To: Philodox Clips List From: "R.A. Hettinga" Subject: [Clips] Airlines in a Panic: Deal on Fliers' Data Is Ruled Illegal Reply-To: rah@philodox.com Sender: clips-bounces@philodox.com http://online.wsj.com/article_print/SB114897794980266136.html The Wall Street Journal Deal on Fliers' Data Is Ruled Illegal Top Court's Decision On EU-U.S. Pact Has Airlines in a Panic By WILLIAM ECHIKSON May 31, 2006; Page A4 BRUSSELS -- Europe's top court ruled illegal a deal with the U.S. for sharing air-passenger data to fight terrorism, forcing officials to scramble in order to keep planes flying across the Atlantic this fall. The European Commission and the U.S. agreed in 2004 that airlines would turn over 34 pieces of information about each passenger flying from Europe to the U.S. -- including name, address and credit-card details -- within 15 minutes of departure. The agreement was controversial because of strict European privacy rules, and the European Parliament challenged it. But Washington threatened to fine airlines and even strip them of landing rights if they didn't comply. The European Court of Justice ruled yesterday that European Union privacy rules exclude the use of such commercial data for crime-fighting purposes. Data can be collected for commercial purposes, but the court said the commission -- the bloc's executive arm -- violated the law by handing the material over to law-enforcement authorities. The court allowed the data to keep flowing until Sept. 30 to give officials some time to negotiate a new deal. U.S. and European airlines have been complying with the agreed-upon rules. They fear being put in the position of violating European law if they submit to Washington's requirements or violating U.S. law if they don't. "We don't want to think about what will happen if this is not settled by the end of September," said David Henderson, spokesman for the Association of European Airlines. "It is so extreme that it could cause some very great disturbances to the industry," he added. "We anticipate that the U.S. government and European authorities will resolve this matter without subjecting airlines to conflicting demands," said James C. May, president and chief executive of the Air Transport Association, a trade group representing U.S. carriers. "ATA and its members will continue to work closely with governmental authorities to find a practical solution to this issue," he said. European and U.S. officials said the ruling is narrow enough to allow them to revise the existing agreement. They said the court didn't address whether the type of data turned over is too extensive under EU law. Instead, they said the judges only decided that the way the accord was adopted was illegal: Instead of basing the rules on commercial law, the EU must rely on laws that apply to police and security cooperation. "It's unimaginable that the data will cease to flow and the planes will cease to fly," said Stewart Baker, U.S. assistant secretary for policy at the Department of Homeland Security, who was in Brussels for a debate about security cooperation. "I am confident we can find a solution." EU Justice Commissioner Franco Frattini said he would try to rework the agreement "under a different legal basis, but with similar content." He, too, said he is confident a deal can be struck before most EU officials go on holiday for August. But without one, he added, "we could face really huge problems." In private, an EU official cautioned that it will be hard to renegotiate a deal that will satisfy both the European Parliament and the U.S. government. Some members of the Parliament vowed to take a tough line on any new agreement. "Our victory in this case demonstrates the refusal...to buckle in the face of trans-Atlantic bullying," said Sarah Ludford, a Liberal Democrat from Britain. The EU won some concessions from the U.S. The length of time the data can be stored was shortened to 312 years from a proposed 50, and some information was deleted such as meal preference. -- ----------------- R. A. Hettinga The Internet Bearer Underwriting Corporation http://www.ibuc.com/ 44 Farquhar Street, Boston, MA 02131 USA "... however it may deserve respect for its usefulness and antiquity, [predicting the end of the world] has not been found agreeable to experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire' _______________________________________________ Clips mailing list Clips@philodox.com http://www.philodox.com/mailman/listinfo/clips --- end forwarded text -- ----------------- R. A. Hettinga The Internet Bearer Underwriting Corporation http://www.ibuc.com/ 44 Farquhar Street, Boston, MA 02131 USA "... however it may deserve respect for its usefulness and antiquity, [predicting the end of the world] has not been found agreeable to experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'