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Open Skies Deal - Good or Bad News?

 
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gfloyd



Joined: 07 Dec 2006
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PostPosted: Sat Mar 03, 2007 9:27 am    Post subject: Open Skies Deal - Good or Bad News? Reply with quote

THE European Commission has agreed an outline 'Open Skies' agreement with the United States which experts predict could lead to exponential growth in transatlantic air travel.

The EU said a pact would generate 26m additional transatlantic passengers over the next five years, provide up to €12bn in economic benefits, and create 80,000 new jobs in the EU and US combined.

Ireland and Germany have been the driving forces behind the push for a new agreement, while Britain has been the principal opponent.
The deal would allow American carriers unfettered access to Heathrow, the world's largest airport, which accounts for 40pc of all transatlantic traffic.
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SantaFefan



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PostPosted: Sat Mar 03, 2007 9:30 am    Post subject: Reply with quote

what global warming?
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gfloyd



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PostPosted: Sat Mar 03, 2007 9:32 am    Post subject: Reply with quote

SantaFefan wrote:
what global warming?


It does seem to run contrary to all the talk about combating global warming doesn't it?
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SantaFefan



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PostPosted: Sat Mar 03, 2007 10:20 am    Post subject: Reply with quote

Yes.. I'm not convinced by all the hype. Didn't I see a trailer for a TV programme coming up shortly discussing the "fors and againsts" all the theories about Global Warming? I'll watch it with interest.
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Cherskiy



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PostPosted: Sat Mar 03, 2007 10:27 am    Post subject: Reply with quote

I thought the headline was about the arms monitoring programme of the same name....

US carriers have enjoyed reasonable though restricted access to Heathrow and Gatwick in the past, although as a result of bilateral agreements with UK carriers such as BA. This opens everything up, just like the bus deregulation in the UK, which means you'll get a spate of second- and third-tier carriers trying their luck and fighting for limited slots at an already congested LHR and LGW.

No wonder the UK is opposed - BA would lose its monopoly at LHR and its European domestic routes would be under threat by cheaper US airlines - harking back to the days when Delta and Pan Am 727s flew to German airports from LHR.
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Lord Evan Elpuss



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PostPosted: Sat Mar 03, 2007 10:36 am    Post subject: Reply with quote

As I remember the PA 727 / 737s were a kind of feeder service to Germany designed to connect with the B747 flight at LHR.
I also wonder if this will mean European airlines like Lufthansa flying transatlantic from LHR or LGW.

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Last edited by Lord Evan Elpuss on Sun Mar 04, 2007 1:13 pm; edited 1 time in total
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gfloyd



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PostPosted: Sat Mar 03, 2007 11:47 am    Post subject: Reply with quote

I think it is most likely that we will see more regional airports offering flights to second tier US destinations outside of New York, LA, Chicago, Washington. Maybe even direct flights to Sante Fe?
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SantaFefan



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PostPosted: Sat Mar 03, 2007 12:55 pm    Post subject: Reply with quote

I'd be there! Very Happy it's about time I visited one of my beloved steam locomotives.... Crying or Very sad
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gfloyd



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PostPosted: Sun Mar 04, 2007 12:56 pm    Post subject: Reply with quote

It is reported that BA are going to lobby very strongly against this deal. They obviously want to protect their high profits which are generated almost exclusively from North American routes.

It is interesting that their Chief Executive, Willie Walsh, in his previous job as CEO of Aer Lingus, was one of the most strident advocates in favour of Open Skies. Hopefully some enterprising reporters will dig through the archives to compare these statements to the ones he will be making in the coming weeks.

Without doubt the consumer would gain from Open Skies, at least in terms of price and increased direct routes. However the environment and level of customer service will suffer. So on a net basis is lower seat prices worth it? Hard to say really.
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