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mgh

Open Skies Deal

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EU transport ministers unanimously supported an open-skies deal with the US for trans-atlantic flights. This should increase competition on these flights. At present, BA, Virgin, American Airlines and United Airlines dominate transatlantic flights from Heathrow.

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Can't see much changing. There won't be many additional slots as capacity is already near maximum. Perhaps with LHR T5 is live there will be more opportunity.The crazy part of this stupid deal is that US carriers now have cabotage rights in Europe, but European carriers do not in the US. A tad one sided and the US carrier invasion into Europe will mean this deal will not last."Open Skies", some skies remain more open than others.

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Other airlines who already have slots at LHR may well use some for transatlantic flights - BMI in particular. Other may chose to buy them. The current price is said to be

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>>The crazy part of this stupid deal is that US carriers now have cabotage rights in Europe, but European carriers do not in the US. A tad one sided and the US carrier invasion into Europe will mean this deal will not last.<

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This deal can only be good for the consumer, with more competition to keep prices low.I agree that the deal is a little one sided toward the states (like the extradition treaties, but lets not go there!) however im not too worried by that, so long as they get me to where im going im happy :-hah What i do wonder though is whether the low price that may be achieved by competition will just be made up for by "green taxes" especially this side of the Atlantic:-eek Dave

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>>Some of you guys will find any little thing to blast America.Quite how this is a criticism of the US I don't know. It is a criticism of the deal, the Europeans had to agree to it to :D

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Competition is good.I remember the "good old days" when the airlines used IATA to run a cartel. It even specified the size of sandwiches that could be served to make sure no airline offered a better one than the others. Also BEA (now BA) and Air France eliminated all competition on the London - Paris route by pooling their revenue. If you booked on one, the other got a fixed share of your fare.

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