The UK, Austria, Belgium, Denmark, Germany, Finland, Luxembourg and Sweden will all stand in the dock in the European Court of Justice.

EU Transport Commissioner Neil Kinnock said that EU member states striking unilateral agreements which give US carriers permission to fly into the European Union in return for their airlines flying into the US created serious distortions in terms of competition.

Mr Kinnock says the deals distort competition

Former UK Labour leader, Mr Kinnock believes that the separate agreements will undermine the deregulated civil aviation market in the EU, violating EU law.

A spokesman said that if the countries accepted the Commission's mandate to negotiate an EU-wide aviation accord with the United States there were "always ways to suspend the action before the European Court of Justice."

Legal action

The Commission started legal action against the countries in 1995, saying that the deals could discriminate against other EU countries.

The action was suspended in July 1996 after the EU Council of Ministers authorised the Commission to act on behalf of all its members in talks on airport slots, reservation systems access and environmental protection.

But the Commission has now decided to reactivate the lawsuit to settle an agreement on the core issue of traffic rights.

Bilateral talks 'weaken EU'

Mr Kinnock says most EU countries now want the Commission to handle negotiations on traffic rights.

His spokesman said the pursuit of separate bilateral talks "weaken the EU's position in any future negotiations and constitute another violation of community law."