Chris Jasper/LONDON Ramon Lopez/WASHINGTON DC
The USA and UK have agreed a "mini-deal" allowing US Airways to begin London-Pittsburgh services and Virgin Atlantic Airways to retain flights to Chicago.
Under the accord, the UK may also select a new US gateway to serve from London Gatwick, or a new UK airline may serve an existing gateway, again from Gatwick.
The mini-deal has not addressed wider issues, although US Transportation Secretary Rodney Slater says he hopes the breakthrough will pave the way for a "significantly liberalised" air services agreement by the end of the year.
Though the new agreement could allow British Midland to fulfil its plans re-enter the transatlantic market, it has signalled that it is unlikely to bid for Gatwick rights. Instead the carrier prefers to stick out for a wider deal giving access to the USA from London Heathrow.
In that case, British Airways and Virgin are likely to compete for access to a new gateway. US Airways will begin Pittsburgh services from 17 July using Boeing 767-200s.
Slater will meet his UK counterpart, Deputy Prime Minister John Prescott, for informal talks on 25 April, and the two countries have agreed to a fresh round of official negotiations in London in the middle of June.
Slater says he is approaching the new talks "with cautious optimism," and that "the objective is to have a new liberalised aviation agreement by the end of the year".
He nevertheless says a UK demand for cabotage rights in the USA and the relaxation of limits on foreign ownership of US carriers "is off the table", and adds that anti-trust immunity for the planned American Airlines/BA codeshare "is not something we'd consider in the current environment".
Washington's demands include access for more US carriers at Heathrow.
Slater says there has been no progress in the row with the European Union (EU) over hushkits, adding that a compromise offered by EU Transport Commissioner Loyola De Palacio's is unacceptable.
"The compromise would have been contrary to the International Civil Aviation Organisation process," he says.
Source: Flight International
