The UK government is to resume negotiations with the US Department of Transportation over a "mini-deal" liberalising transatlantic air travel, but UK airlines are split over support for the UK negotiators.
Talks on an open skies deal between the UK and USA ran aground earlier this year, but the UK believes that a deal involving at least partial liberalisation could be achieved in the next few weeks (Flight International, 5-11 February).
The UK Department for Transport says that it will hold informal official-level talks with the US government on 15 August, which might lead to formal talks and a bilateral agreement, but declines to comment on its negotiating stance.
Only four airlines - American Airlines, British Airways, United Airlines and Virgin Atlantic - are allowed to operate services to the USA from London Heathrow. Previous negotiations were halted after BA refused to give up Heathrow slots in exchange for US antitrust immunity for its alliance with American. Neither BA nor Virgin are now keen for the talks to resume.
"The next logical step is to pursue liberalisation through EU-led negotiations", BA says, with Virgin agreeing that full liberalisation "may only be achieved by a multilateral agreement between Europe and the USA". Both are also worried that a limited liberalisation deal would delay a full deal.
BMI, however, has much to gain from a bilateral deal. "We don't think it would delay negotiations on full liberalisation, but it would reduce BA's large transatlantic profits for the period until a deal is reached," the airline says.
Source: Flight International
