Race to avert air chaos on data deal

A deal allowing airlines to hand over confidential passenger data to the United States has been struck down by Europe's highest court, in a move which could mean chaos for transatlantic air travel.

Yesterday's decision came after complaints that a deal allowing US officials access to 34 different pieces of passenger information breaches personal privacy.

The European Court of Justice threw out the Passenger Name Records deal, negotiated to satisfy US anti-terror measures, objecting to its legal basis. The court gave the EU until September 30 to find an alternative solution - leaving officials with a desperate race to try to resolve the legal muddle.

If they fail, airlines could have to choose between defying the US authorities - and being fined or having flights turned back - or leaving themselves open to legal action in Europe. National governments would have to strike their own deals with the US, or all flights from their airports to American destinations could be grounded.

Disputes over passenger records date back to the aftermath of September 11 when the US demanded more stringent security standards. After several European aircraft were turned back for failing to supply passenger data, the European Commission helped negotiate the deal, which came into force in May 2004.

It obliges airlines to transmit information electronically within 15 minutes of flights embarking for the US. Details include the names of all travellers, all contact details, telephone numbers, addresses, emails, payment information, bank numbers and credit card data.

US authorities agreed to store the data for only three and a half years and abandoned demands for data on meal preferences, which could indicate a passenger's religion. But the European Parliament challenged the measure in court, arguing that the US offers insufficient data protection guarantees.

Yesterday's ruling did not criticise data transfers themselves or raise objections on the grounds of rights or privacy. It took issue with technicalities behind the law which was brought in under rules covering the European Single Market and relying on a Data Protection Directive. The court ruled that this was inappropriate since the law does not apply to data collected for security purposes.

The European Commission will now look for a way to put the agreement on a different legal footing. One possibility is to use article 24 of the EU's governing treaty which allows for EU foreign policy agreements with individual states or international organisations. An alternative is to go ahead under justice and home affairs legislation.

Such accords might be impossible to arrange in time, particularly since all governments would have to agree. Failing that, EU governments might strike bilateral deals with the US, though whether these would contravene European law is unclear.

- INDEPENDENT