Progress has been made on an “open skies” deal between the EU and the US, news that could be good for passengers but that has angered British airlines.
Long-haul carriers British Airways and Virgin Atlantic have both criticised the agreement, prompted by the fact that they could lose prime-time landing and take-off slots at Heathrow, the world’s busiest airport for international traffic.
Under the deal, European airlines would be allowed to fly from anywhere in the EU to any airport in the US without restrictions on pricing and capacity. At the present time, there are only four carriers that are allowed to fly between the US and Heathrow – British Airways, Virgin Atlantic, United Airlines and American Airlines.
The EU transport commissioner, Jacques Barrot, said he would ask EU nations to back the agreement when their transport ministers meet to discuss the deal on March 22.
“We have an opportunity to unlock major benefits on both sides of the Atlantic,” he said. “In economic terms, this unprecedented agreement would represent a step-change.”
The breakthrough came about on Friday following two rounds of negotiations held in February and March. “During this week’s negotiations, EU and US negotiators made decisive progress for an open skies agreement,” Barrot added.
Aviation leaders believe that the move could see passengers benefiting from the lower prices arising from increased competition on popular routes such as London to New York.
In a statement released on Friday, US secretary of transportation Mary E. Peters said that the deal would “open our skies and expand the freedom of air travel between the world’s two largest aviation markets” as well as offer more choice and convenience to consumers.
The US and the EU are the two largest aviation markets in the world and the new deal could lead to 26 million more passengers per year on transatlantic flights.
Other provisions being sought by the EU include antitrust immunity in order to facilitate the development of airline alliances and the technical cooperation between the EU and the US in relation to climate change.
The deal as it stands does not make provision for opening the US aviation sector to foreigners, which is seen by many as important for establishing an environment in which airlines can set their own fares freely. However, it would be easier for EU companies to buy the non-voting shares of a US airline.
Shares in British Airways plunged by almost ten per cent on the latest news and the airline is looking to lobby on the issue.
