EU court rules airline data deal with US illegal

BRUSSELS - The European Union acted illegally when it agreed to transfer airline passenger data to the United States as part of US efforts to fight terrorism, the bloc's highest court has ruled.

Under a May 2004 EU-US agreement, European airlines have been obliged to give US authorities 34 items of information on passengers flying to the United States.

They include passengers' names, addresses, all forms of payment and contact telephone numbers.

The United States insisted the transfer of data was essential to fight terrorism following the September 11, 2001, attacks on New York and Washington by suicide plane hijackers.

The European Parliament challenged the deal, contending it had no legal basis and infringed fundamental rights.

The European Court of Justice ruled that the EU Council of Ministers' decision to sign the agreement lacked an adequate legal basis.

"Consequently, the court annulled the council decision approving the conclusion of the agreement and did not consider it necessary to consider the other pleas relied on by parliament," a court statement said.

But it gave the executive European Commission and member states four months to find a solution, saying that it maintained the legality of the decision until Sept. 30 "for reasons of legal certainty".

Among possible options, the Commission and EU countries could seek a new legal basis for signing the agreement, try to renegotiate the deal, or individual member states could conclude bilateral agreements with the United States instead.

The Court did not rule out on the lawmakers' claims that the agreement infringed on passengers' privacy.

- REUTERS