Today is the first day under the new Open Skies agreement between Europe and the U.S., starting what is considered by many a ‘new era’ in air travel. A Continental Boeing 777 was the first to land at Heathrow under the new arrangement, putting and end to roughly three decades of restrictive rules which allowed only four airlines (British Airways, Virgin Atlantinc, United Airlines and American Airlines) to operate between that airport and the U.S..
This aggreement means that, during an initial phase:
1) U.S.-based carriers will be able to fly to any location in the E.U. and to connect European city pairs (therefore exercising the Fifth Freedom right; more about the Freedoms of the Air);
2) E.U.-based carriers will be able to fly from any European city to any location in the U.S. (e.g.: Air France-KLM is starting flights from the U.K. to Los Angeles; British Airways will connect New York to Brussels and Paris).
At a later phase, and depending on the success of further negotations, European companies should be able not only to fly inside the U.S. but also to own and control U.S.-based airlines.
What about the advantages of such a deal?
For passengers: more options. This doesn’t necessarily mean lower fares in the near or medium term, mainly due to the high oil and airport slot prices. Airlines do pay considerable amounts of money in order to secure airport slots, especially at the most important hubs. For instance, Continental payed $200 million for four slots (two different routes) at Heathrow, being now able to connect it to both New York and Houston.
For airlines: the fact that they are no longer denied access to important destinations such as London and other world’s leading economic centres.
Open Skies is a British Airways subsidiary which will fly between Europe and the U.S.. Image: British Airways.
Posted by Filipe 