Trans-Atlantic flights could be about to get cheaper

The European Union and the United States have reached agreement on the Open Skies airline policy that will open up routes across the Atlantic to competition from all airlines. The agreement which got the unanimous backing of the 25 EU transport ministers means that any EU based airline can fly from any airport in the EU to any airport in the US and vice versa for US airlines.

Unfortunately for the European airlines the EU negotiators seem to have been out manoeuvred as usual by their US counterparts. American airlines will have access to domestic routes within Europe but the same will not apply to the Europeans with the domestic US market.

Virgin Atlantic are not happy about that and wanted the British government to fight for a better deal and get full competition in both markets. British Airways are worried about the effect on Heathrow Airport where they have some exclusive rights, Heathrow is Europe’s busiest airport and a lot of airlines will now be trying to get in there.

The deal which will be signed in Washington at the end of April will come into effect in March 2008 and should see ticket prices come down with more competition, at least in the short term. Its interesting how the British government and the EU can flip-flop between positions. Last week flying was bad for the environment and needed extra taxes to discourage people from taking planes, this week its all good, lets have more airports and more airlines. I guess if they’re getting money from both ends they’re happy.