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Travel Related News

Open Skies 'benefiting transatlantic flyers'

May 16, 2008

Air travel between London Heathrow Airport and the US is now easier and cheaper thanks to the EU-US Open Skies agreement, industry experts have claimed.

Previously, tough federal regulations restricted the number of airlines operating transatlantic flights out of Heathrow to just four - British Airways, Virgin Atlantic, American and United.

The seemingly draconian rule had its roots in air travel's earliest years, when concerns over national sovereignty led governments to curtail the freedom with which foreign carriers could use domestic airports.

But as the global aviation industry ballooned throughout the 20th century, restrictions such as the one imposed on Heathrow promptly fell foul of accusations of protectionism.

On March 30, 2008 - following years of legal wrangling between the EU and the US - the Open Skies agreement finally came into effect (see related Cheapflights story) and a major obstacle to liberalised transatlantic air travel was removed.

Six weeks on and major US carriers such as Northwest, Delta and Continental have already introduced services running between the world's busiest international airport and number-one global superpower.

As of June, travellers will be able to choose from 95 separate flights a day linking the two countries - 18 more than a year ago - and according to new research by Sabre Airline Solutions, consumers are already benefiting from the change.

The average return fare paid by a US traveller flying from Heathrow is now $1,162 (£597) - a four per cent reduction against last year's prices, which totally confounds the fuel price hikes that have driven up fares for Europe-bound Heathrow services by an average of nine per cent.

On top of the financial savings, travellers are also now benefiting from the convenience of being able to fly direct to the British capital, with many having previously relied on Gatwick services in order to retain the benefits of using their preferred carrier.

"For years, airlines have wanted to add service in this market and couldn't because of regulatory reasons," Chris Spidle, research director at Sabre Airline Solutions, told USA Today. "Now, they've rushed headlong into the market."

The new Heathrow services include a daily Delta service from Atlanta; a twice-daily Delta connection from New York JFK; twice-daily Continental flights from the airline's Newark and Houston bases; and daily flights from Detroit, Minneapolis and Seattle by Northwest.

And with the apparent success of the Open Skies treaty, analysts say the next step towards liberalised air travel is likely to revolve around reforming America's oft-complained about foreign ownership rules.

The controversial legislation has been blamed for the failure of numerous merger attempts between British Airways and American Airlines.

© Adfero Ltd

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