BRITISHMidland chairman Sir Michael Bishop has blamed British Airways and Virgin Atlantic for the postponement of open-skies talks (Travel Weekly July 5).
Talking the day before negotiations were due to commence last Tuesday, Sir Michael said the rival UK carriers were effectively blocking British Midland’s access to the Heathrow-US market.
Last week’s discussions were postponed after BA and the Office of Fair Trading failed to agree on how many slots should be given up by a BA/American Airlines alliance to allow fair competition. The lack of free slots bars the way for British Midland to start US services.
Sir Michael said: “I think Virgin, as well as BA, are to blame. This is now becoming an issue for the Government.”
He urged ministers to look at the subject in the same way as they are investigating pricing issues between rival supermarkets. British Midland has pledged to introduce cheaper business and economy fares than BAand Virgin when it launches transatlantic flights.
British Midland group managing director Austin Reid said he was very disappointed the talks had been postponed again.
“It seems there are two issues – the bilaterals and the BA/American alliance. They should be separate,” said Reid.
He stated that the slot problem with BA/American may be a side issue and that Heathrow could be opened up in one dramatic move, with regulators telling airlines to fight their own battles for slots.
Reid said British Midland – which was to have sent head of industry affairs Tony Davis to last week’s Washington meeting, had not received notification of new talks.
Sir Michael said talks could be held up until July next year before they would stop for the US presidential elections.
He reiterated his demand for an exemption for British Midland from current bilateral rules. Sir Michael also said he could launch US flights from Manchester, before any Heathrow services.
A BA spokesman denied the airline was trying to block British Midland’s access to the US market.
“We have been pressing for an agreement for three years, another two weeks will not matter,” he said.
Virgin described Sir Michael’s claims as “rubbish”.