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Old 25th Mar 2007, 12:27
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MaxRange120
 
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Open skies could shut local routes

For a better idea of what may really happen this item is in todays Observer gives a view of bmi plans after open skies.
MR120
Whitehall sources have indicated that the deal, which allows all EU carriers to fly to the US, will mean some will switch capacity from domestic routes to the US, 'squeezing out' links to UK regions.
Government officials are concerned airlines such as BMI will switch their Heathrow take-off and landing slots from routes serving the regions to US routes in search of higher revenues.
BMI chief executive Nigel Turner said he expected to switch domestic routes to the US when the 'open skies' deal comes into effect next spring. He said BMI is likely to start with three flights a day, possibly to Chicago, Charlotte, North Carolina or New York. BMI plans to buy another three Airbus A330 planes to service the routes. The airline is looking to expand US routes in future.
Turner said: 'Inevitably there will be some reduction in short-haul flying' and added that increases to air passenger duty, which is levied on each take-off and landing in the UK, would mean UK regional routes would be the most likely to be re-allocated.
He added that BMI would look to reduce business-class fares across the Atlantic by some 10 per cent and ruled out any sale of its Heathrow slots.
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