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Thursday, 15 August, 2002, 17:04 GMT 18:04 UK
'Open skies' talks resume
Planes queuing for take-off at Heathrow
Reforms could lead to more competition
Negotiators from the US and the UK are meeting in Washington to try to find a way of relaxing the rules on air travel between the two countries.

The so-called 'open skies' talks include the possibility of allowing more airlines to fly to the US from London's Heathrow airport.

At present, under a deal known as Bermuda 2, only four airlines are allowed to fly between Heathrow and the United States.

These are Virgin Atlantic and British Airways from the UK and United Airlines and American Airlines from the US.

Limited measures

Advocates of an open skies deal say a greater choice of airlines will bring lower fares.

But previous attempts to open up Heathrow have failed, with BA reluctant to surrender its landing slots to rival carriers.

In order to try to make some progress, the UK government is reported be proposing limited reform measures.

These would allow the UK carrier BMI British Midland to fly to the US, in return for one of either Continental, Delta or Northwest airlines being allowed to fly into Heathrow.

Passenger benefits

The chairman of BMI British Midland, Sir Michael Bishop, told BBC Radio 4's Today programme that change was long overdue.

"There's no question that it's inconsistent with what is happening in Europe and on domestic routes in the UK that there shouldn't be progressive liberalisation on services on the North Atlantic," he said.

"There's no question... that the consumer benefits from a wider choice of airlines both in terms of new destinations which can be served and the range of prices that can be offered."

BMI British Midland already has an operation at Heathrow, and Alexander Campbell at Flight International magazine told the BBC the airline could gain big benefits from such a deal.

"Under whatever conditions are imposed it would still be great for them to be able to link their European network in with the very valuable American east coast market," he said.

But the talks may be superseded by measures expected from Brussels.

Later this year the European Commission is expected to begin negotiating 'open skies' deals with non-European Union countries on behalf of all EU governments.

 WATCH/LISTEN
 ON THIS STORY
The BBC's Brian Milligan
"More competition on the routes could mean cheaper flights"
BMI British Midland's Sir Michael Bishop
"The consumer benefits from a wider choice of airlines"
See also:

31 Jan 02 | Business
02 Aug 02 | Business
12 Jun 02 | Business
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