Luxembourg, Nov 05: The European Court of Justice ruled today that bilateral "open skies" accords between European Union member states and the United States violate EU law.

The Luxembourg-based ECJ was ruling on a European Commission case lodged against eight other EU members who have forged their own aviation liberalisation accords with Washington. The European Commission has been pressing for the United States to agree a deal with the whole 15-nation EU that would give airlines greater access to us airports.

The court ruling was on a case brought by the EU's executive arm against EU members Austria, Belgium, Britain, Denmark, Finland, Germany, Luxembourg and Sweden. Specifically the ECJ ruled that the EU had exclusive right to determine "certain aspects" of the setting of fares and conditions on routes within the EU by non-EU Airlines.

"In those respects, the 'open skies' agreements concluded by certain member states with the United States of America are contrary to community law," said a statement. "Moreover, the clause on the ownership and control of airlines constitutes discrimination which is incompatible with community law," it added.

Britain was notably warned last month against rushing into an "open skies" aviation accord with the united states before a ruling from the EU court. EU transport commissioner Loyola De Palacio wrote to British foreign secretary jack straw saying that "such an agreement would undermine efforts at the EU level."

Bureau Report