BRITISH Airways would not face allegations of price-fixing if services between Heathrow and the US had been deregulated, claims BMI
chairman Sir Michael Bishop.
Speaking on the 20th anniversary of BMI’s first flight from Heathrow to Amsterdam, he said: “I can’t overstate the anachronism of the restrictive bilateral agreement which led to these allegations.”
BMI’s Amsterdam service marked the beginning of deregulation of Europe’s skies. Now the airline hopes an end to restrictions – which allow only four airlines to fly to the US from Heathrow – is near.
Sir Michael said: “The European Commission has declared the present arrangements illegal, and the US and EC have decided they want open skies”.
The airline had to lobby for five years to gain access to domestic routes from Heathrow before beginning operations to Glasgow in 1982 and Edinburgh in 1983, he said. It has been lobbying for access to North America for up to six years.
BMI deputy chief executive Tim Bye said: “It’s ridiculous the busiest intercontinental routes in the world are still limited to four airlines. Consumer demand can only drive growth if there are no restrictions.”
Bye said recent limited deregulation of services between the UK and India had led to a 400% increase in passengers on the routes.
“The negotiations [on open skies between the UK and US] are concluded. The only thing holding it up is the question of foreign ownership of airlines in the US. If the EC is satisfied, there is no reason why it won’t go ahead in October. But we’ve been this close before.”
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BMI operated its first Heathrow-Amsterdam flight on June 29 1986, with fares at £70-£80. It carried just 1.5 million passengers on all routes at the time. Last year, it carried 10.5 million, with over one million on Heathrow-Amsterdam.