- EU-US Open Skies Agreement
The EU-US Open Skies Agreement is an air transport agreement between the
European Union and theUnited States . The agreement allows any airline of the European Union and any airline of the United States to fly between any point in the European Union and any point in the United States. Airlines of the United States are also allowed to fly between points in the European Union. Airlines of the European Union are also allowed to fly between the United States and non-EU countries likeSwitzerland . [ [http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2007:134:0004:0041:EN:PDF Air Transport Agreement] Official Journal of the European Union, L134 (volume 50, May 25, 2007)] The Agreement replaced and superseded previous open skies agreements between the US and individual European countries.The agreement was signed in
Washington, D.C. , on April 30, 2007. The agreement became effective March 30, 2008.Impact
London - United States
Under the agreement,
London Heathrow Airport has been opened to full competition. This ended the exclusive right granted for only two US airlines and two UK airlines (Bermuda II ) to fly transatlantic services out of Heathrow. These four airlines wereBritish Airways ,Virgin Atlantic Airways ,United Airlines , andAmerican Airlines .This right also exists for third country carriers with incumbent Fifth Freedom rights to carry passengers between London Heathrow and the United States. These rights were previously exercised by
Air New Zealand (betweenLos Angeles -London Heathrow ),Air India (betweenNew York -London Heathrow ), andKuwait Airways (also betweenNew York andLondon Heathrow ).El Al also had such rights but chose not to use them, andIran Air technically also had similar rights, but is prohibited from flying to the US due to US government economicsanctions against Iran .Singapore Airlines had been allowed to fly theLHR -USA routes. However, due to an extreme shortage of aircraft, the airline was unable to fly the route.Singapore Airlines intends to fly the route once it receives new incoming aircraft.Fact|date=March 2008Continental Airlines announced it will begin service toLondon Heathrow from Newark and Houston. [ [http://phx.corporate-ir.net/phoenix.zhtml?c=85779&p=irol-newsArticle_Print&ID=1078367&highlight= Continental Airlines To Begin Service To London Heathrow From Newark and Houston] (Continental Airlines: November 15, 2007)]Delta Air Lines announced it will begin service toLondon Heathrow from Atlanta and New York (JFK). [ [http://news.delta.com/article_display.cfm?article_id=10886 Delta Air Lines To Begin Service To London Heathrow From Atlanta and New York (JFK)] (Delta Air Lines: October 17, 2007)]Northwest Airlines announced it will begin service toLondon Heathrow from Detroit, Minneapolis/St. Paul and Seattle. [ [http://www.nwa.com/corpinfo/newsc/2007/pr121120071918.html Northwest Airlines To Begin Service To London Heathrow From Detroit, Minneapolis/St. Paul, and Seattle In 2008] (Northwest Airlines: December 10, 2007)]US Airways announced it will begin service toLondon Heathrow from Philadelphia. [ [http://www.usairways.com/awa/content/aboutus/pressroom/pressreleases.aspx US Airways To Begin Service To London Heathrow From Philadelphia] (US Airways: November 20, 2007)]Nevertheless, expansion of transatlantic flights to or from Heathrow will continue to be limited by lack of
runway capacity, government limits, and the fact that many take-off slots are owned by incumbent airlines. British Airways holds 40% of slots, while bmi holds 12%.Other routes
Several airlines are changing their routes and schedules now that the agreement has come into effect. Many airlines are also buying take-off and landing slots at
LHR . For example, BMI is trying to buy slots fromVarig .Fact|date=March 2008British Airways has set up a new subsidiary,
OpenSkies . OpenSkies is due to begin service between New York JFK andParis Orly , on June 19 2008. Over the next year, the aircraft fleet is expected to rise to 6 planes serving additional destinations.Meanwhile, Virgin Atlantic had said that it intended to add daily flights to New York from several European cities, such as
Paris ,Frankfurt ,Milan ,Amsterdam , andZurich , but has since ruled out such services until 2010 at the earliest. [ [http://www.travelweekly.co.uk/Articles/2008/03/04/26858/virgin-atlantic-rules-out-continental-europe-to-us-service-until.html Virgin Atlantic rules out continental Europe to US service until 2010] (Travel Weekly: March 4, 2008)]KLM announced new service from Dallas/Fort Worth to Amsterdam. [http://www.nwa.com/offers/neweurope2008/ Northwest/KLM expands service to Europe] from theNorthwest Airlines website]Industry consolidation
The agreement has apparently renewed interest in
airline industry consolidation, [ [http://www.bloomberg.com/apps/news?pid=20601087&sid=acdfGA2rU5JI&refer=home Bloomberg.com: British Airways May Make Iberia Bid With Equity Group] ] although true take-overs among Flag-Carrier airlines are emotive and difficult to drive through in the face of National and financial interests.British Airways ' 2007 plan to buyIberia Airlines had to be shelved when it became apparent that a Spanish investment bank would prevent the deal, so in 2008 a merger was proposed instead, which would retain both brands along the lines of the 2004Air France andKLM merger. [ [http://news.bbc.co.uk/1/hi/business/7530961.stm BBC: BA's long-haul route to Iberia tie-up] ]Fares
There is little consensus about whether increased
transatlantic competition will have any effect onfare s. Some believe the market is already highly competitive. Other sources have been predicting radical changes, such as €10 flights. [ [http://www.iht.com/articles/2007/04/13/news/skies.php International Herald Tribune: Visions of a €10 ticket to fly across the Atlantic] ]In April 2007,
Ryanair confirmed it was planning to start a new airline (RyanAtlantic ) that would operatelong-haul flights between Europe and the United States. According to Ryanair's chief executive,Michael O'Leary , the airline intends to start flying in 2010, with flights to 5-6 U.S. cities, including Baltimore andProvidence, Rhode Island . The carrier, unlike traditional low-cost airlines, would sell both economy and premium(B&B)-class tickets.Fact|date=October 2008References
Wikimedia Foundation. 2010.