Open skies battle to be renewed
Monday 04 November 1996
A breakthrough in the long-running talks would open up Heathrow to all US carriers and is vital if British Airways and American Airlines are to get the go-ahead for their transatlantic alliance.
However, industry observers believe it may be difficult for the two sets of negotiators to make headway over the issues that separate them.
The US is demanding fifth freedom rights for its carriers - the right to land at a UK airport, pick up passengers and fly on to a third country. In return, the UK wants cabotage rights in the US which would enable UK carriers to operate domestic services within North America.
So far Britain has vigorously resisted the US demands even though fifth freedom rights have been a feature of every other open skies deal it has so far concluded with other European countries such as Germany and the Netherlands.
An industry observer said yesterday: "I cannot see the US negotiators budging from their insistence on fifth freedom rights. This has formed part of the template for every open skies deal they have done so far and I can't see them changing things this time. If there is no open skies deal then there is no BA-American alliance."
BA opposes the idea of US carriers being allowed to fly to third countries from Heathrow because it would enable them to start competing not just on European routes but on services to long-distance destinations.
Virgin Atlantic, meanwhile, is pressing for cabotage rights insisting it could launch low-cost services within months if given the opportunity.
- 2 18th century sex toy found in 'toilet of sword fighting school' in Poland
- 3 US? China? India? The 10 biggest economies in 2030 will be...
- 4 'I wish my teacher knew...': Young students share their 'heartbreaking' worries in notes
The only black face in the Ukip manifesto is on the page about overseas aid
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
iJobs Money & Business
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...
£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...
£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...