Primer on Open Skies

[Ukridge]

Could someone please provide a simple primer as to what the Open Skies agreement really means? What does each nation see as its advantage and what brought them to the signatory table?
The UK is smaller than some of your states so what does the US exactly gain? I guess Sir Richard and Willie Walsh can now set up shop on your Boston to L.A. routes while United and others can ply the long-haul from Newcastle to Manchester! 😉
Seriously, a good overview would be appreciated as the only thing that I know is that Heathrow is capacity constrained so it seems the only way one can gain access is to purchase slots from an incumbent.

 

[FWAAA]

I'm not smart enough to give a good primer - where's Cosmo?

For now, EU airlines will not be permitted to fly intra-USA routes, so BA and VS won't be flying our transcons. All it means is that the value of rare LHR slots just went up in price as any EU airline and any USA airline can fly LHR to/from any USA city.

 

[Ukridge]

- where's Cosmo?

Good point. Cosmo, any ideas?

 

[JungleClone]

A true Open Skies agreement like this will altar the landscape of the industry. It will certainly allow for carriers to more competitively schedule routes into code-share partner hubs, thereby strengthening the total network of each alliance. Of course, the bigger challenge bill be securing slots and gates/facilities, especially at London Heathrow. That will be a tougher road to hoe. But Open Skies was inevitable. And sooner or later, the stranglehold that BA, UA and AA have on Heathrow will end, as more carriers begin serving it. But it will take a bit of time for that to happen. This is definately good news for the consumer.

 

[The Gopher]

History shows that when U.S. airlines have greater freedom to compete with their European counterparts for trans-Atlantic customers, the Americans do very well.

Academic research into the market between 1984 and 1990 shows that European airlines in the six countries with the most liberal bilateral air-service agreements — Belgium, Denmark, France, Germany, Spain and the Netherlands — lost market share to their American rivals while European airlines in the six most restrictive countries — Greece, Denmark, Italy, Portugal and the United Kingdom — gained share against the constrained Americans.

http://www.cato.org/research/articles/firey-030924.html

With the Euro being so strong, and EU airlines pricing in dollars with costs in Euros, they will have an uphill battle with US carriers. I for one look forward to new Atlantic routes because if this agreement.

More ASMs = more staff = more people junior to me!

 

[NewHampshire Black Bears]

OK, so lets "suppose" CO gets the next china award(over AA).

Then if AA were to offer a "lone" LHR slot to CO(from say IAH/LHR) , than CO might cough up a PEK flight from EWR(that AA could fly from say...JFK, or ORD) ??

Does "this" sound equatable ??

NH/BB's

 

[FA Mikey]

Not even close.

British Airways has struck a deal to buy 51 runway slots at Heathrow from bmi for 30 million pounds ($58.9 million), according to report from The Times.