Washington, D.C. ? European companies would be allowed larger stakes in U.S. airlines under a tentative agreement reached Friday between the U.S. and European Union. It also would give carriers more freedom to choose trans-Atlantic routes and could lead to lower fares.

The agreement, announced by the Transportation Department, would allow European airlines to fly from anywhere in the EU to any point in the U.S., and vice versa.

EU Transport Commissioner Jacques Barrot said he would ask EU nations to back the deal when EU transport ministers meet March 22. There is a U.S.-EU summit in May at which the deal then would likely be considered.