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UK Government to accept US open skies deal – 20 March 2007

 The UK Government appears ready to accept a deal to liberalise air travel between the European Union and US, despite last-minute lobbying by British Airways for a rejection.

European transport ministers are due to vote on an open-skies agreement tomorrow, with the UK Government alone in raising objections. Tony Blair was reported ready to intervene personally today to seek concessions.

But the Government signalled it would not oppose the agreement, having earlier said the deal gives too many advantages to US airlines without comparable rights for European carriers.

The deal would open access to US services from Heathrow, which are currently limited to four airlines – British Airways, Virgin Atlantic, American Airlines and United Airlines. It would also allow US airlines to fly between European airports, but not grant reciprocal rights to EU carriers.

BA and Virgin Atlantic oppose the relaxation, but other EU governments and airlines and most US carriers are in favour, as are UK airlines such as BMI and Silverjet.

If EU ministers ratify the agreement tomorrow, it will go to a meeting of US and European Commission representatives on April 20. However, it might still be scuppered by growing opposition within the US.

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