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Major breakthrough claimed in transatlantic open skies talks
“Decisive progress” has been made in long-running transatlantic open skies talks between the European Union and US.
The claim came from EU transport commissioner Jacques Barrot following the latest round of negotiations.
If approved by ministers on March 22, the new regime could be in place by the end of October.
It would allow Heathrow to be opened up to competition on routes to the US in place of the current long-standing arrangement which limits two carriers from each nation to fly the North Atlantic – British Airways, Virgin Atlantic, American Airlines and United.
The major beneficiary of a loosening of the rules would be Bmi which has spent years lobbying to start US flights from the London hub, where it is the second largest holder of take off and landing slots.
Runway and terminal restrictions at the airport could restrict major transatlantic flight expansion but an open skies deal is sure to intensify competition to British Airways from its ‘fortress Heathrow’ base.
BA reportedly attacked the deal, reputedly designed to open up the £9 billion transatlantic airline market, saying: “We do not believe this is a good deal for for Europe or the UK. We have reached a deal-end rather than a pathway to a true open aviation area.”
James May, CEO of US-based Air Transport Association, whose members represent 90% of all US airline passenger and cargo traffic, said: “While we have not seen the details, this tentative agreement has the potential for creating new avanues of economic development between the US and Europe.
“We are pleased that the parties were able to work through the issues to reach this result. We all look forward to developing a more complete understanding of what is envisioned.”
by Phil Davies
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