THE USA HAS WALKED away from the latest round of bilateral talks with the UK, despite an offer of two new routes to Heathrow within a year and the possibility of giving a third US carrier access to the airport.

Sources close to the talks, which were broken off by the US side on 20 October, say that options offered by the UK effectively included an opportunity for American Airlines to move its Dallas service from Gatwick to Heathrow. "It's the first time the UK has offered a concession of this magnitude," according to the source.

Other possible destinations suggested for the new Heathrow services were St Louis, Missouri, and Newark, New Jersey, with no apparent restrictions on the carrier - although US priority is understood to have been to give new opportunities to American, TWA and Continental.

Also on offer from the UK side were two new routes to Gatwick, final liberalisation of charter services and six new cargo beyond-rights to the Far East.

The collapse of the talks, which clearly took the UK by surprise, appears to stem from fundamental differences over the speed of opening up access to Heathrow.

The UK accuses the USA of attempting to force the pace on talks, which were originally intended to yield only a "very limited and balanced deal".

Privately, the UK believes that the USA was driven by in-fighting between its own airlines, as they scented new opportunities at Heathrow following the mini-deal reached earlier this year.

Source: Flight International