Open Skies
...I suspect VS's comments about flying Europe-US are intended as something of a threat; i.e. saying to AF/LH that "if you fly from our airport, we'll fly from yours"
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The real winners from an EU/UK perspective could well be the newish lowcost longhaul carriers beginning to emerge.
Zoom UK, Globespan and others like them could very well open new routes from secondary destinations into places like MAN and LGW from the US.
The big revolution I think will be more point to point flying from the US, rather than the current hub and spoke setup.
Zoom UK, Globespan and others like them could very well open new routes from secondary destinations into places like MAN and LGW from the US.
The big revolution I think will be more point to point flying from the US, rather than the current hub and spoke setup.
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The big revolution I think will be more point to point flying from the US, rather than the current hub and spoke setup.
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It might be so for US carriers, but is certainly not the case for EU/UK carriers.
As for the LHR issue, I have to agree, although that is what is happening today, it may not always be the case.
Higher yields come with a higher cost of doing business at LHR, and you can make the argument that putting all your eggs in one basket increases your exposure to unforseen circumstances.
As for the LHR issue, I have to agree, although that is what is happening today, it may not always be the case.
Higher yields come with a higher cost of doing business at LHR, and you can make the argument that putting all your eggs in one basket increases your exposure to unforseen circumstances.
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UK "will not block" Open Skies
Several media outlets report today that the UK "will not block" Open Skies. The deal is likely to go through on Thursday, although the DFTR says that negotiations are ongoing. TB is supposed to be speaking to GB today, although there is no confirmation that O/S is on the agenda.
The UK is seeking a five month delay in increasing access to LHR (until T5 is open). It's expected that this will be granted.
Presumably new US carriers to LHR will then use T4?
Does anyone know whether there is a date for Mixed Mode operations to be introduced at LHR?
The UK is seeking a five month delay in increasing access to LHR (until T5 is open). It's expected that this will be granted.
Presumably new US carriers to LHR will then use T4?
Does anyone know whether there is a date for Mixed Mode operations to be introduced at LHR?
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Tony Blair ... speaking to George Bush. He is seeking US approval for concessions sought by the UK, specifically a five month delay in bringing Open Skies to Heathrow, i.e. until Terminal 5 opens.
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Apparently Bush rejected the Blair approach re excluding Heathrow.
However, a rumour that there would be "good news" in tomorrows EU talks has pushed BA shares up in the market today.
However, a rumour that there would be "good news" in tomorrows EU talks has pushed BA shares up in the market today.
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No. 10 has rejected the Independent's report on Blair being rebuffed (and in fairness to No.10, the Independent derives considerable glee from suggesting differences between the UK and US, and the "cracks" in the special relationship). Its report was little more than speculation.
The UK has already indicated that it is unlikely to veto the deal; interestingly though, the Italians have suggested that they have not yet decided, although I can't see any good reason for them to reject it. It's not as if AZ wants to buy into any US carriers.
If "Good news" in a BA context means the use of the veto, that now looks unlikely. The good news probably means a six month delay in LHR coming into the O/S regime, i.e. until the opening of T5.
The UK has already indicated that it is unlikely to veto the deal; interestingly though, the Italians have suggested that they have not yet decided, although I can't see any good reason for them to reject it. It's not as if AZ wants to buy into any US carriers.
If "Good news" in a BA context means the use of the veto, that now looks unlikely. The good news probably means a six month delay in LHR coming into the O/S regime, i.e. until the opening of T5.
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Well folks, less than 12 hours to go. The UK is said to be still negotiating feverishly; depending on which report you read, a vote should be taken either at lunchtime or this afternoon. The sticking issue is still the automatic cancellation of Open Skies if the US does not agree to domestic access by a certain date. The EU Commission says that there is a provision to compel the US to come back to the negotiating table over this, so it's not quite clear what the difference is between what the current deal proposes and what the UK wants.
Expect a lot of hard talking in the meeting today; it's 26 -v- 1 and if that one country revokes the deal, has it really considered the consequences of that?
Hopefully, they will see the positives and realise that access to the US domestic market would be a pyrrhic victory; given the brutality of the US domestic market and the likelihood that any new, foreign entrant would be cut apart by the likes of Air Tran, Southwest, Spirit and the now-lean legacy carriers, I can't see any of them entering the market, which again brings us back to the suspicion that a deal-breaker is being deliberately pushed by parties who want only to see the deal killed.
Hopefully it won't come to that; here's to success by lunchtime ...
Expect a lot of hard talking in the meeting today; it's 26 -v- 1 and if that one country revokes the deal, has it really considered the consequences of that?
Hopefully, they will see the positives and realise that access to the US domestic market would be a pyrrhic victory; given the brutality of the US domestic market and the likelihood that any new, foreign entrant would be cut apart by the likes of Air Tran, Southwest, Spirit and the now-lean legacy carriers, I can't see any of them entering the market, which again brings us back to the suspicion that a deal-breaker is being deliberately pushed by parties who want only to see the deal killed.
Hopefully it won't come to that; here's to success by lunchtime ...
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Great news. Here's the BBC report:
http://news.bbc.co.uk/1/hi/business/6477969.stm
This is terrific; there is need for some clarification, particularly in relation to when the deal will take effect. Some have been saying March 2008 (but I think - and hope - that only applies to LHR) and it remains to be seen if anything sought by the UK is likely to undermine the chances of approval by the US. We'll see, I guess.
For now, just savour the moment.
Expect a significant announcement from EI as well ...
http://news.bbc.co.uk/1/hi/business/6477969.stm
This is terrific; there is need for some clarification, particularly in relation to when the deal will take effect. Some have been saying March 2008 (but I think - and hope - that only applies to LHR) and it remains to be seen if anything sought by the UK is likely to undermine the chances of approval by the US. We'll see, I guess.
For now, just savour the moment.
Expect a significant announcement from EI as well ...
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I am reliably informed that Aer Lingus have a derogation to start their new US ops in October, either by language in the agreement, or by getting the nod from the EU that they will tolerate a short-term change in the outgoing Ireland/US bilateral.