BA demands instant access to US after 'open skies' deal
Saturday, March 24, 2007
BRITISH Airways said it wanted talks to start immediately on liberalisation of the US aviation market after European Union transport ministers cleared plans to free up transatlantic routes between Europe and the United States.
BA is annoyed that the "open skies" agreement between the EU and US forbids European airlines from flying between American cities, while American carriers can fly between destinations in the EU countries. But a clause in the deal means Britain could reimpose restrictions on US airlines operating in Europe in 2010 if there was no progress in a second round of negotiations aimed at removing internal barriers in the US. "With the EU having given away their most valuable negotiating asset Heathrow the UK government must stand by its pledge to withdraw traffic rights if the US does not deliver further liberalisation by 2010," said BA chief executive Willie Walsh.
"The EU is naive to believe the US will deliver on the next stage of liberalisation without sanctions, so we are pleased the UK government has recognised this and demanded an automatic termination clause.
"Nothing short of an open aviation area by 2010 will be acceptable and we want talks on the second stage to achieve this to start immediately."
Those talks are planned to take place by January 2008.
"We will hold the government to its word to fight for Britain's interests if America doesn't play ball," Walsh said in a statement.
"Though this is a poor agreement for Britain and Europe, we are ready to exploit the new opportunities this agreement gives us for our customers and our business."
The deal means that British Airways and Virgin Atlantic will lose the grip they have on flights to the US from London Heathrow, the world's busiest international airport.
The two airlines previously shared this route with US carriers American Airlines and United Airlines.
Virgin Atlantic congratulated the British government on negotiating concessions, noting that it was not a complete liberalisation.
"Today's agreement starts to remove the shackles of regulation which tie up the aviation industry worldwide. It's a good day for the traveller as consumers should benefit from fully open skies between the EU and US by 2010," it said in a statement.
British carrier BMI plans to announce its first flights to the US soon.
AFP
BA is annoyed that the "open skies" agreement between the EU and US forbids European airlines from flying between American cities, while American carriers can fly between destinations in the EU countries. But a clause in the deal means Britain could reimpose restrictions on US airlines operating in Europe in 2010 if there was no progress in a second round of negotiations aimed at removing internal barriers in the US. "With the EU having given away their most valuable negotiating asset Heathrow the UK government must stand by its pledge to withdraw traffic rights if the US does not deliver further liberalisation by 2010," said BA chief executive Willie Walsh.
"The EU is naive to believe the US will deliver on the next stage of liberalisation without sanctions, so we are pleased the UK government has recognised this and demanded an automatic termination clause.
"Nothing short of an open aviation area by 2010 will be acceptable and we want talks on the second stage to achieve this to start immediately."
Those talks are planned to take place by January 2008.
"We will hold the government to its word to fight for Britain's interests if America doesn't play ball," Walsh said in a statement.
"Though this is a poor agreement for Britain and Europe, we are ready to exploit the new opportunities this agreement gives us for our customers and our business."
The deal means that British Airways and Virgin Atlantic will lose the grip they have on flights to the US from London Heathrow, the world's busiest international airport.
The two airlines previously shared this route with US carriers American Airlines and United Airlines.
Virgin Atlantic congratulated the British government on negotiating concessions, noting that it was not a complete liberalisation.
"Today's agreement starts to remove the shackles of regulation which tie up the aviation industry worldwide. It's a good day for the traveller as consumers should benefit from fully open skies between the EU and US by 2010," it said in a statement.
British carrier BMI plans to announce its first flights to the US soon.
AFP
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