Airlines unhappy over data deal

Major airlines have criticized the U.S. and Europe of leaving them in a legally uncertain position by failing to coordinate security data-sharing policies. A 2004 agreement requires European airlines to give the U.S. data on passengers flying to that country, but on May 30 a European court decided that the agreement had no legal standing.

Under the rules, airlines could be fined as much as US$6000 per passenger if they fail to provide the information. "If we do not follow the U.S. rules we will be fined and if we follow them we will go to jail," said Giovanni Bisignani, director general of IATA.

The two parties have been given four months to work out a new deal. A European Commission member told Reuters that the commission is confident a new deal will be reached by the end of September.