Open Skies, Open Season?
The International Herald Tribune reports that the U.S. and E.U. have come to a preliminary agreement to expand trans-Atlantic aviation competition. The accord, in its current form, will expand access to London Heathrow Airport, relax government control of air fares, and allow national airlines to originate U.S.-bound flights anywhere in Europe.
The agreement hasn’t been set in stone, but its provisions would expand options for travelers on both sides of the pond. Specifically:
The plan would do away with rules that allow only British Airways, United Airlines, American Airlines and Virgin Atlantic to fly between the airport and the United States.
The deal hinges on U.S. regulators allowing foreign airlines more control over U.S. airlines. Currently, foreign stakeholders holding less than 25 percent of an American carrier can excert little control over its management. We’re hoping the plan is approved, and we appreciate this insight, from the U.S. Transportation Department’s undersecretary for policy, Jeffrey Shane, quoted in the IHT:
“The one industry in which capital is not allowed to flow freely across national boundaries is the very industry that has facilitated the globalization of all the others, commercial aviation.”
Let’s hope aviation hops on the bandwagon.
Tags: Airlines, News, News
Paul