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U.S. aims to open U.K. skies
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February 15, 1999: 10:15 a.m. ET
U.S. officials arrive in London this week in bid to liberalize aviation treaty
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LONDON (CNNfn) - The U.S. hopes to kick-start talks with the U.K. over full liberalization of the aviation accord this week with the offer of a phased move toward "open skies".
Officials from Washington are due in London Thursday for two days of informal talks with their U.K. counterparts. Representatives of the U.S. Department of Transportation will use the meeting to offer a phased-in liberalization of the aviation treaty between the two countries, the Financial Times reports, quoting industry observers.
This would represent a toning down of the U.S. position, which previously demanded full market access to London's Heathrow, the world's leading international airport, at the time when British Airways (BAY) was seeking approval from Washington for a comprehensive alliance with AMR Corp.'s (AMR) American Airlines.
The last round of formal talks between the two countries collapsed even before they had started last year, when U.K. negotiators made it clear they wouldn't agree to immediate "open skies" with the U.S. Washington officials walked out of the talks, in early October and three weeks later BA and American announced they would seek a phased-in alliance over five years.
Access to Heathrow for U.S. airlines currently is limited to only two carriers, American and United Airlines. Washington is under pressure from other parties, including Delta Air Lines, Continental, US Airways and TWA, to secure access.
Airline officials believe a phased-in accord is possible, pointing to recent deals signed by the U.S. with Japan, France and Italy. "We are glad that discussions are coming up again, because any new situation would be better than what we have at the moment," Stephan Egli, Delta's VP Europe, told CNNfn. Egli pointed out, however, that these are "talks about talks," and it will take some time yet to hammer out any agreement.
Egli also said availability of takeoff and landing slots will be the major hurdle even if some kind of access to Heathrow is granted. Delta (DAL) is a major carrier at New York's JFK airport but is unable under the current bilateral pact to serve either Heathrow or even its U.K. base at London's Gatwick. The Atlanta-based airline is the world's largest in terms of passengers, flying some 105 million people annually.
"A phased-in open skies agreement would benefit both sides. It would just be a matter for both sides to agree how phased-in phased-in is," said Kevin O'Toole, editor of U.K.-based Airline Business magazine.
The U.K. previously agreed to open up all its other airports, except the two main ones in London. But the inability to get more access to Heathrow has long been a thorn in the side of U.S. aviation policy.
Washington has spent much of the 1990s pushing liberalization agreements on its major trading partners. The U.K. is the only remaining major Western nation still holding out. 
-- by staff writer Mark Odell
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