AJ
2nd Dec 2000, 02:34
Is this the whole story, and if so, why the status quo? Will prices really slide?
Just interested in hearing what people know/think about this..
Progress in forging a new agreement with Britain on increasing airline competition remains unlikely as long as London seems inclined to give British Airways time to find a strong U.S. or European partner, according to a senior United States negotiator.
"The problem, as I see it, is that the United Kingdom, at least at present, would rather protect its airline from competition than provide its citizens with the benefits of enhanced competition," U.S. Department of Transportation Assistant Secretary Francisco Sanchez told an Airports Council International-North America seminar.
Sanchez said he had been hopeful about progress while British Airways was exploring a merger with KLM Royal Dutch Airlines, only to see the deal collapse.
He said the lack of a market-driven aviation agreement between the two countries imposed unnecessary costs on both countries and on their consumers and ignored the lessons of history.
"The United Kingdom became a world leader by grounding its economy in the benefits of open markets and trade and not by denying its citizens the freedom of choice," Sanchez said.
"As long as the UK government feels that British Airways needs to make structural changes through a strong partnership with a U.S. partner and a European partner, or at least one of those, I think we are going to experience a reluctance on the part of the UK."
Aviation talks have dragged on for years between the two countries with little result. Britain postponed air negotiations with the United States last month and no dates have been set so far for further talks.
Under a 1991 modification to the 1977 Bermuda II Treaty, only British Airways, Virgin Atlantic, United Airlines and American Airlines can operate direct, scheduled flights between London's busy Heathrow airport and U.S. cities.
From airwise.com
Just interested in hearing what people know/think about this..
Progress in forging a new agreement with Britain on increasing airline competition remains unlikely as long as London seems inclined to give British Airways time to find a strong U.S. or European partner, according to a senior United States negotiator.
"The problem, as I see it, is that the United Kingdom, at least at present, would rather protect its airline from competition than provide its citizens with the benefits of enhanced competition," U.S. Department of Transportation Assistant Secretary Francisco Sanchez told an Airports Council International-North America seminar.
Sanchez said he had been hopeful about progress while British Airways was exploring a merger with KLM Royal Dutch Airlines, only to see the deal collapse.
He said the lack of a market-driven aviation agreement between the two countries imposed unnecessary costs on both countries and on their consumers and ignored the lessons of history.
"The United Kingdom became a world leader by grounding its economy in the benefits of open markets and trade and not by denying its citizens the freedom of choice," Sanchez said.
"As long as the UK government feels that British Airways needs to make structural changes through a strong partnership with a U.S. partner and a European partner, or at least one of those, I think we are going to experience a reluctance on the part of the UK."
Aviation talks have dragged on for years between the two countries with little result. Britain postponed air negotiations with the United States last month and no dates have been set so far for further talks.
Under a 1991 modification to the 1977 Bermuda II Treaty, only British Airways, Virgin Atlantic, United Airlines and American Airlines can operate direct, scheduled flights between London's busy Heathrow airport and U.S. cities.
From airwise.com