LONDON HEATHROW Airport could lose its status as the premier gateway to Europe, if the UK Government continues to prevent open-skies bilateral-air-services talks with the USA, US transport secretary Federico Pena has warned.

Pena says that success in negotiating liberal bilaterals with European nations, including Germany, allows passengers in search of travel bargains to bypass Heathrow.

"I am not happy with our aviation relationship with the UK. I find it inexcusable that our two countries...should have one of the most restrictive aviation agreements in the world. I've been trying to encourage the British government to sit down with us, but the British like the restrictive agreement," he says.

"The world is made of free traders, not regulators. I say that, over time, our friends in Britain will realise that flying through Heathrow may not be the only way to enter Europe. The long-term result of the British approach...could undercut Heathrow's status as the premier gateway," Pena claims.

Closer to home, the US transport secretary says that the US/Canada bilateral reaped $2 billion in economic benefits for both sides in its first year. By the year 2000, the pact will have expanded economic activity by $15 billion, he predicts.

After a sluggish start, Canadian carriers increased scheduled flights by 61% and US airlines increased flights by 32%. Canadian carriers saw passenger traffic grow by 35%, compared to an increase of 15% achieved by US carriers.

Source: Flight International