As US-UK open skies talks remained scheduled for early October, a clarification of the UK Government's position on the British Airways-American transatlantic alliance was awaited.
In deciding how many slots the prospective alliance partners will have to relinquish at London Heathrow and Gatwick airports and whether or not they will be able to sell them, the UK's Labour Government may be influenced by its former party leader Neil Kinnock.
Kinnock, now the European Union (EU) transport commissioner, announced in early September that he plans to legalise slot sales in the EU, even though this could take three years. Kinnock has been promising new slot distribution rules for at least two years. These would the purchaser holding slots for a limited period of time. For competition commissioner Karel Van Miert, who has previously slapped down these proposals, the timing of transport directorate chef's statements will be particularly irritating.
Kinnock's statement bolsters the view expressed by the UK's Department of Fair Trading (OFT)in recent recommendations to the Secretary of State for Trade and Industry Peter Mandelson, that BA should be allowed to sell the 267 slots the European Commission is demanding as a price for approving the alliance. At presstime Mandelson, who is reported to favour slot trading, was awaiting airline comments on OFT's advice.
But UKunions representing 80,000 airline workers - including pilots union Balpa and the TGWU cabin and ground staff union - are already opposing slot sales. They claim these would treble airport costs and push fares up by 10%.
Source: Airline Business
