Here's a Possible New Int'l Route

BuffaloJoe

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Aug 17, 2005
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It may be possible for US to serve LHR-Heathrow after Oct. 28.

U.S., EU Reach Tentative Agreement That Would Give Carriers Greater Freedom to Choose Routes

WASHINGTON (AP) -- European companies would be allowed larger stakes in U.S. airlines under a tentative agreement reached Friday between the U.S. and European Union. It also would give carriers more freedom to choose trans-Atlantic routes and potentially lead to lower fares.
The agreement, announced by the Transportation Department, would allow European airlines to fly from anywhere in the EU to any point in the U.S., and vice versa. For example, it would end restrictions on the number of airlines allowed to fly between the U.S. and London's Heathrow Airport, one of the world's busiest. Only four carriers -- United Airlines, American Airlines, British Airways and Virgin Atlantic -- now serve that market.
Transportation Secretary Mary E. Peters said the agreement "will offer more choice and convenience to American consumers."

Another key aspect of the deal, described to The Associated Press by a U.S. government official who spoke on condition of anonymity, enables European companies to own up to 49.9 percent -- and in some circumstances, more than 50 percent -- of U.S. airlines, up from the current 25 percent limit. Yet another provision could help Richard Branson's Virgin Group Ltd. gain regulatory approval needed to launch a U.S. subsidiary, Virgin America Inc.

EU Transport Commissioner Jacques Barrot said he would ask EU nations to back the deal when EU transport ministers meet March 22. There is U.S.-EU summit in May at which the deal would then likely be considerd. The U.S. Congress must also back the deal before the new rules would kick in Oct. 28.

"We have an opportunity to unlock major benefits on both sides of the Atlantic," Barrot said in a statement. "In economic terms, this unprecedented agreement would represent a step change."

Air travel in Europe and the United States accounts for 60 percent of global air traffic, and an ambitious EU-U.S. open skies deal could allow more airlines to fly the lucrative trans-Atlantic routes, possibly offering cheaper tickets.

The EU forecasts that within five years the deal could put an extra 26 million people on trans-Atlantic flights. Just under 50 million travelers now make that trip every year.

"Any agreement...would provide enormous benefits to airline passengers," David Stempler, president of the Washington, D.C.-based Air Travelers Association said.

Airlines, meanwhile, were cautious in assessing the tentative deal.

Michael Whitaker, senior vice president at UAL Corp., the parent company of United Airlines, said, "We have long pressed for completing the work of deregulation and are encouraged by the progress and the opportunities that the tentative agreement would bring for United and our customers."

A spokesman for American Airlines said the company would not comment until it had seen the details.

A EU official -- speaking under condition of anonymity before the deal had been approved -- said the U.S. had also agreed to drop current rules that make it harder for EU airlines to buy stakes in carriers based in Africa or non-EU European countries.

Airline company shares received little boost from the news. Shares of UAL Corp., the parent of United Airlines, fell 91 cents to settle at $39.07 on the Nasdaq Stock Market, while shares of American Airlines' parent AMR Corp. fell 85 cents to $32.88 on the New York Stock Exchange
 
For example, it would end restrictions on the number of airlines allowed to fly between the U.S. and London's Heathrow Airport, one of the world's busiest. Only four carriers -- United Airlines, American Airlines, British Airways and Virgin Atlantic -- now serve that market.

Although it doesnt say, does it also end the select cities for access to LHR? Good for US, PHL is a LHR city.
 
Isn't this more or less the same proposal that CO had issues with a while ago? I remember there was a part about more US carriers being able to fly to LHR, but the few slot times they were going to get were unreasonable, or something to that effect.
 
For anyone clamoring for US to fly to LHR, have you ever been to Heathrow. What an abysmal, chaotic, passenger-unfriendly place. I'll take Gatwick anyday if I'm going to London. Connecting in Europe, I'll take AMS, CPH, FRA, or pretty much anywhere.
 
For anyone clamoring for US to fly to LHR, have you ever been to Heathrow. What an abysmal, chaotic, passenger-unfriendly place. I'll take Gatwick anyday if I'm going to London. Connecting in Europe, I'll take AMS, CPH, FRA, or pretty much anywhere.
The Global connectivity and strong presence of Alliance partners is what makes LHR favored over LGW.
 
Good luck getting a slot at LHR.
I saw on a DOT site joint request from Virgin Atlantic and US AIRWAYS to start codeshare flights on route UK - USA .
I guess that as we get OK from DOT , US will sell tickets to LHR as well as LGW on codeshare basis .
Just for info : there were also requests of Codeshare for flights USA - Jordan with Royal Jordanian RJ , And also for the flights to Taipei and bejond with EVA AIRWAYS - BR .
 
These are just transfers to US Airways of the previous codeshares that have been in place for some time under the America West name.
That would be great, Virgin can fly into PHL and do Heathrow while US does Gatwick. Give BA a run for their money. That would probably eliminate 1 of the BA's flights. Althought I don't know how they make money on the 2nd flight to LHR flight 68, last month I counted 21 people on the flight.