US to gain open access to UK airports

UK backs ‘open skies’ amid reservations

UK backs ‘open skies’ amid reservations

European ministers today approved the ‘open skies’ aviation deal with the US.

The deal liberalises transatlantic air travel and could end the dominance of the flag carrier airlines at airports such as Heathrow.

Ministers unanimously voted for the deal, which allows any EU airline to fly from Europe to any US city. However, while US airlines have been granted access to EU domestic routes, EU airlines will not gain the same privileges in the US.

“The deal is of great political and economic importance. The fact that everyone in the Council (of transport ministers) has been able to welcome the outcome is to be commended,” European transport commissioner Jacques Barrot said in a statement.

“I am delighted to have piloted this agreement to its destination with all passengers still on board.”

UK transport secretary Douglas Alexander had expressed concerns ‘open skies’ grants insufficient privileges to Europe vis-a-vis the US. The UK’s reservations about the deal were such that negotiations began with many expecting Mr Alexander to oppose the plan.

Following pressure from Britain, EU ministers approved a five month delay, meaning ‘open skies’ will not come into force until March 2008, rather than October this year. Mr Alexander said this would give carriers time to make preparations for the changes.

Furthermore, the UK has obtained a commitment from fellow EU ministers that stage two of the deal, which allows access for European airlines within American airspace, will begin by the end of this year.

The second stage will be reviewed in 2009 and if it is not completed by 2010 the privileges granted today will be immediately revoked, Mr Alexander said.

He added: “We have secured, in effect, now not simply a commitment from the Americans to talk, but an obligation on the Americans to act in relation to stage two.”

Mr Alexander said he hoped it would not be necessary to withdraw the ‘open skies’ privileges, adding, “but this sends a very clear signal to the US that we are serious about making early progress to second stage deal.”

The Conservatives claim, however, the concessions made by America are minimal.

Julian Brazier, shadow minister for aviation, said: “Everybody is in favour of a genuine open skies agreement but that is not what this deal is. Britain will lose valuable slots at Heathrow, while America will continue to refuse access to non-American airlines on their gigantic domestic market.

“As British airlines have pointed out, the value of the American concessions is minimal while we will lose a great deal.”

Nevertheless, EU ministers claim consumers will benefit from the deal, with ‘open skies’ paving the way for more transatlantic competition and lower fares for passengers.