Fares To USA May Plummet
Saturday March 03, 2007
A price war that could drive down the cost of transatlantic flights may be about to break out following a deal between the US and EU.
The “open skies” deal could end restrictions on the number of airlines allowed to fly between the US and Heathrow airport.
Airlines have greeted the move, which still has to be agreed at a meeting of EU transport ministers later this month, and the US Congress, with a mixed response.
BMI has been campaigning on the issue for more than six years and welcomed it.
However, Virgin said the deal did not “look positive” and British Airways said it was not a “good deal for Europe or the UK”.
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Only four carriers – United Airlines, American Airlines, British Airways and Virgin Atlantic – currently operate transatlantic flights from Heathrow.
The EU forecasts that within five years the deal could put an extra 26 million people on transatlantic flights.
Just under 50 million travellers now make that trip every year.
EU Transport Commissioner Jacques Barrot said he would ask EU nations to back the deal when transport ministers meet on March 22.
There is a US-EU summit in May, at which the deal is also likely be considered.
The US Congress must also back it before the new rules would come into effect on October 28.
By: airportsexpress - 5th March 2007 at 18:59
I’m under the impression also that Zoom Airlines which currently operates froom the UK to Canada and by all accounts overs a very good service is about to launch flights to the Eastern Seaboard of the United States flying from Gatwick, in fact they have already started recruiting cabin crew.
This would act to lower prices at least initially whilst the likes of BA and American try to do what they did to Laker Airways
But i don’t think that opening up Heathrow will make all that much difference it is congested as it is and there just isn’t going to be the slots to allow other operators in.
What i see happening is the alliances such as Star and One World will consolidate their services effectivly operating them under the alliance banner so where as currently United operate for example Chicago to Heathrow and BMI operate Heathrow to Brussels Star Allaince will consolidate the service so it would become Chicago-Heathrow-Brussels using the one aircraft.
This won’t mean cheaper prices just more profits!
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March 3, 2007 at 11:47 pm