The European Union aims to seal a partial transatlantic aviation agreement with the United States by the end of this year, EU Transport Commissioner Jacques Barrot said on Monday.

The two sides came close to sealing an "open skies" pact last year, but talks broke down after EU ministers demanded more access for European airlines to the US domestic market.

"We think we'll be able to get a first step agreement by the end of the year," Barrot told a news conference on Monday after a meeting of EU transport ministers.

"I did hear today that ministers were very much determined to support our efforts," he said.

Barrot declined to give details on how a first-stage agreement would differ from the one rejected in 2004.

He reiterated, however, that cabotage -- the right to operate domestic flights -- was no longer a sticking point for the 25 nation EU.

"The problem of cabotage doesn't really lie at the heart of these discussions. European companies are not really interested in cabotage in the US," he said.

"It's true that on the other hand what we want is ownership rules to be rendered more flexible."

In previous draft agreements, Washington had been willing to let EU investors own up to 49 percent voting stock in a US carrier, up from 25 percent, but European officials have since indicated that offer was not sufficient.

Britain, which takes over the rotating EU presidency in July, is a key player in the talks because of US carriers' desire to gain more access to London's Heathrow Airport.