Chairman of bmi calls for price transparency
June 29, 2006The bmi chairman has taken a swipe at his airline’s competitors in light of recent investigations into price fixing on transatlantic routes.
Sir Michael Bishop said that UK and US governments should learn the lessons of 20 years of European deregulation, which have brought cheap flights to millions.
Last week authorities on both sides of the Atlantic launched a probe into alleged price collusion over transatlantic airfares and fuel surcharges involving British Airways after a tip-off from Virgin Atlantic. American Airlines and United Airlines are also cooperating with the investigation.
“Recent events in the UK and the US highlight the importance of transparency in competition in air travel,” Sir Michael said at an event marking the first flight bmi made between Amsterdam and London in 1986.
“The consumer will always be the loser if fares are influenced or set by any forces other than a free and deregulated market.
“Britain’s pre-eminent position in world aviation will be kept only if we see continued deregulation of international markets, particularly across the Atlantic, and if we see investment in the infrastructure of our airports to allow continued growth.”
bmi has been calling for the end of restrictions that limit the number of airlines able to operate transatlantic flights from London Heathrow.
At present only British Airways, Virgin Atlantic and the two US carriers, American and United, are permitted to fly from Heathrow to destinations in the USA.
© Cheapflights Ltd Craig McGinty
