The government looks likely to approve the open skies deal between the EU and the US, saying that it would bring millions of pounds worth of benefits to UK consumers through lower fares.
Under the deal, European airlines would be allowed to fly from any point in the EU to any airport in the US, without restrictions on pricing and capacity. Equally, American carriers would be able to fly to any destination in Europe.
Transport Secretary Douglas Alexander told the Transport Select Committee that Britain would not sign up to a deal unless it was in the overall UK interest to do so, The Guardian reports.
“There could potentially be very real consumer benefits immediately – reflective of the benefits of low fares and competition we have seen in recent years as a result of the open area within the EU,” he said.
It also seems unlikely that Britain will find many allies if it decides to block the deal, since many European countries feel they will benefit from opening the transatlantic skies.
The main sticking point from the UK point of view is that, at the present time, only four airlines are permitted to fly between Heathrow and the US: British Airways, Virgin Atlantic, United Airlines and American Airlines.
If the deal goes through, other US carriers such as Continental, Delta and Northwest will gain access to Heathrow – good news for passengers but potentially bad for British aviation.
UK airline bmi has welcomed the deal as it will give it more freedom to operate flights to the US, but this may come at the expense of domestic routes.
Chief Financial Officer Nigel Turner said he couldn’t guarantee that bmi would maintain all its existing routes in that eventuality.
