Max Kingsley-Jones/LONDON

British Midland (BM) is adamant that it will begin long-haul services next year, but is tight lipped about its contingency plans should it not receive clearance for transatlantic flights.

The airline had expected to be in a position to detail its plans for transatlantic flights from London Heathrow and Manchester for summer season 2001. The failure, however, of the USA and the UK in late January to reach agreement on a new air services bilateral has halted BM's ambition. After full open skies talks failed, a "mini deal" was tabled which would have opened up access to Heathrow transatlantic services for BM and allowed additional US airlines entry to the London airport.

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"The USA sent a delegation to London with the aim of agreeing a deal-there is no reason why the governments should not return to this proposal or something similar," says airline chairman Sir Michael Bishop.

No date has been set for a new round of negotiations, but BM is hopeful that it will be cleared to start services from summer 2001. The airline has moved ahead with its long-haul fleet acquisition, concluding deals for at least four 211-seat Airbus A330-200s for delivery from April next year.

BM says its "prime objective" is to launch Manchester services "in tandem with" Heathrow services. It says it would be "unreasonable" for the airline to fly transatlantic services from the northern UK city only, as no other carrier does.

Bishop dismisses suggestions that he faces the prospect of having no use for the A330s when they arrive next year if US/UK negotiations fail. He says: "The rest of the UK [outside Heathrow/Gatwick] has open skies with the USA," which suggests that regional transatlantic flights could still be a fall-back option.

Bishop insists that BM will "launch long-haul services next year", but will not discuss his contingency plans, or whether the A330s will be used on services from Heathrow to non-US destinations.

• British Midland is to launch short-haul routes from Heathrow in May, to Madrid, Milan and Rome. Slots will be made available for the services by the termination of unprofitable flights to Prague and Warsaw, while Heathrow-Frankfurt services will stop as BM overlaps with Star partner and shareholder Lufthansa.

Source: Flight International