BMI British Midland has called on the UK government to resume open-skies negotiations with the USA to end their Bermuda II bilateral agreement as soon as possible, in the belief that a deal allowing BMI to fly transatlantic from London Heathrow is still possible.
The airline's latest attempt to get clearance to fly from Heathrow to the USA collapsed in the wake of a UK government decision to suspend open-skies talks with the USA. This came after a bid by American Airlines and British Airways to gain antitrust immunity was abandoned following demands by the US DoT that they give up 226 slots at Heathrow. BMI was also looking for antitrust immunity in an alliance deal with United Airlines.
BMI chairman Sir Michael Bishop says he is "satisfied that Bermuda II is in clear breach of European Union competition law". Although BMI may seek damages in a UK court on the grounds that the government breached European law and the 1998 Competition Act, the airline would prefer an open-skies agreement.
The advocate general's announcement that bilateral agreements contravene European law backs up BMI's legal case. However, the UK government is soon expected to be stripped of the power to negotiate a more liberal replacement for the restrictive Bermuda II air-travel treaty between the two countries.
Source: Flight International
