EU hopes for air data deal with US on Thursday after missing deadline.

(From AFX Europe (Focus))

BRUSSELS (AFX) - The EU hopes to reach agreement with the US this week over the transfer of airline passenger data, the European Commission announced Sunday, despite missing a deadline which creates a legal vacuum on the issue.

Talks in Washington ended without agreement on Saturday, the date set by the European Court of Justice for a new deal to replace the existing data transfer system which it ruled illegal.

"European Commission Vice President Franco Frattini and US Homeland Security Secretary Michael Chertoff have agreed that the negotiations will continue in a constructive atmosphere with a view to concluding an agreement as soon as possible," the EU's executive arm said in a statement.

"Much progress has already been made."

In the meantime "the Commission urges the US to continue to apply the safeguards for PNR (Personal Name Record) data that were laid down in the now-lapsed 2004 agreement until such time as a new agreement is reached so as to minimise the risk of legal uncertainty and disruption to EU-US rights," the Commission statement continued.

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