STRICT rules on which UK and US carriers can fly transatlantic routes
from Heathrow are set to be changed.
The US government is studying a proposal from its UK counterparts to
allow another US carrier into Heathrow in exchange for a third British airline
operating across the Atlantic.
The proposal, which resurrects a two-year-old plan, is understood to let
BMI fly from Heathrow to the US and let either Delta or Continental Airlines
launch services.
A source close to open-skies talks between leading UK airlines and the
Department of Transport has told Travel Weekly the Government backs BMI
operating on the route.
DoT officials will meet US colleagues later this month to discuss the
airline gaining entry to Heathrow. Previously, the route has been closed to the
‘Heathrow Four’ – British Airways, Virgin Atlantic, United Airlines and
American Airlines – under the Bermuda II bilateral treaty.
The Government wants full liberalisation of the UK-US market, which
would allow UK airlines to operate on US domestic routes, but the US has
rejected the deal in the past to protect its own carriers.
Instead, it is seeking a ‘limited’ deal to allow more carriers on to the
transatlantic route, but give US carriers protection on domestic operations,
partly as Virgin is threatening to start internal US flights if allowed to.
The source said: “The UK Government wants to increase competition but
recognises the US administration is tentative, especially since September 11.
This deal is a compromise, but would present a breakthrough if it was given the
go-ahead.”
A BMI spokesman said: “We are not opening the champagne just yet. There
is a chance the US will simply reject this proposal.
“The deregulation of the US domestic market was a tortuous process;
deregulation of the transatlantic route from Heathrow will be the same,” he
added.
BA said it would prefer to seek full liberalization through
Brussels-led European Union negotiations, working with the UK Government,
rather than a ‘mini-deal’ between Britain and the US.