A move by the UK to open negotiations on a new deal for transatlantic air transport was rejected as unacceptable by the US government last week.
Last month the UK Department for Transport (DfT) proposed a "mini-deal" which would open up London Heathrow airport to more airlines and relax Fifth Freedom limits on US carriers in Europe and UK carriers on US-Caribbean routes (Flight International, 20-26 August).
At present, only American Airlines, British Airways, United Airlines and Virgin Atlantic can operate transatlantic routes out of Heathrow.
"After consultation with the airlines, airports and labour we decided the UK proposal did not serve as the basis for bilateral negotiations. We continue to believe open skies offers the best environment," says the US Department of Transportation.
"Both sides are considering what to do next," says the DfT. But a deal would only be acceptable "if the USA moves on its restrictive practices in the domestic market and on the Fly America policy, and that is not negotiable", it adds. But the USA shows no sign of shifting on the UK demand for cabotage access to the US domestic market. "We can't negotiate as there is a statutory ban on it," adds the DoT.
US carriers dismissed the UK proposal. "We are disappointed that the UK government, backed by entrenched British Airways and Virgin Atlantic, refuses to fully liberalise the US-UK market," says Michael Whitaker, United vice- president of international and regulatory affairs. This was echoed by Continental, which has no access to London Heathrow and questioned the value of the UK mini-deal offer. "Offering rights to fly to Heathrow without slots is of no benefit," says the carrier.
Events may soon overtake both sides - a European Court of Justice ruling is expected before year-end which could cede the UK's negotiating power to the European Union. In that case, a new EU-USA deal would be needed, but could take up to eight years to draw up. Airlines such as BMI British Midland, shut out of the Heathrow transatlantic market, would like to see an interim deal allowing them access before the EU negotiations.
Source: Flight International
