Tony Blair is to intervene in the open skies deal between the EU and the US and ask for concessions for Britain.
A deal would open up the transatlantic skies and allow European airlines to fly from anywhere in the EU to anywhere in the US, with no restrictions on pricing and capacity. The agreement would severely affect British Airways and Virgin Atlantic as they are currently two of only four airlines allowed to fly between Heathrow and the US.
EU transport leaders are ready to back the deal, but the prime minister is expected to ask President Bush to further liberalise its aviation industry and allow more foreign investment before more US airlines are allowed into Heathrow, The Sunday Times reports.
He could also ask for a five-month delay to the introduction of the deal, in order to allow BA and Virgin to prepare, and require the right to automatic termination if the US does not act fairly.
Sources believe that only the request for a delay is likely to be looked on favourably, with many predicting a knock-back that would undermine notions of a “special relationship” between the UK and the US.
Virgin Atlantic appears to be resigned to the deal going through, having suggested it will begin flights between major European and US airports if it does.
