UK/US: NEGOTIATIONS OVER OPEN-SKIES DEAL

Article Abstract:

An application by US Airways for the resumption of daily flights between London Gatwick and Pittsburgh airports has raised the issue of an 'open-skies' deal between the UK and the US. The Bermuda 2 deal between the two countries currently permits only two carriers from each, British Airways, Virgin Atlantic, United Airlines and American Airlines, to operate transatlantic flights from Heathrow. The US chairman of the House of Public Works, Transportation and Infrastructure Committee has been leading a push for the reopening of services by US Airways. The UK airline British Midland has begun flights to New York, Washington, Boston and Miami, and may begin to operate from Heathrow, together with additional American carriers, if the 'open sky' agreement is concluded.

New capacity, new plant construction

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UK/US: AIRLINE CODE DEAL MAY BE BLOCKED

Article Abstract:

A code-sharing arrangement between British Airways (BA) and American Airlines may be blocked by US regulators, as BA is being blamed for refusing to negotiate on liberalising transatlantic air travel. BA is currently seeking approval from the US Government to develop its relationship with American Airlines, which would allow it access to the US domestic market. However, an agreement on liberalisation would have certainly helped BA in gaining approval, according to Paul Gretch of International Aviation at the Department of Transportation.

Scheduled Airlines, British Airways PLC, American Airlines Inc.

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US: GOVERNMENT EYES SANCTIONS FOR UK AIRLINES

Article Abstract:

The US government is encountering increasing pressure to impose restrictions on UK airlines amid the deadlock over the Open Skies deal between the two nations. Congress is being urged by Committee on Transportation chairman, Bud Shuster, to impose sanctions in response to alleged inflexibility on the part of the UK, which is impacting efforts to allow more airlines to operate transatlantic services. The US is unhappy that UK Prime Minister, Tony Blair, is backing British Airways, which has a dominant position at Heathrow Airport and claims that should the US succeed, as many as 8,000 jobs may be lost.

International economic relations, International politics

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