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UK to ‘agree landmark transatlantic open skies deal’
The UK is likely to accept a landmark deal with the US to open transatlantic flights to greater competition, according to reports.
Ahead of a crucial EU meeting of transport ministers tomorrow (Thursday), speculation is mounting that the UK government will not block the open skies agreement, which would come into force in October.
But the UK will seek a delay in introducing the deal at London Heathrow until a fifth terminal is opened at the congested airport in 2008, Reuters reported from Brussels.
The UK also wants EU concessions withdrawn if Washington does not agree to allow European airlines a controlling interest in US carriers by mid-2010.
Under current rules only two UK and two US airlines can fly to the US from Heathrow – British Airways, Virgin Atlantic, American Airlines and United.
But bmi, the second largest holder of slots at Heathrow, has indicated it would start two or three transatlantic routes a year if the new deal was approved, while Virgin Atlantic would start services from continental Europe to the US.
A European industry source quoted by the news agency said: “It’s increasingly difficult for the UK on the one side being one of the biggest backers of liberalisation and on the other being as protective as it would be perceived to be if it tried to reject (this) on the grounds of the Heathrow question.”
The fact that US authorities have granted tentative approval for Virgin America to start flying US domestic routes is being seek as a potential concession by Washington (See separate TravelMole story).
by Phil Davies
Phil Davies
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