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Cut in air fares to U.S. from London

Batuk Gathani

EU countries endorse `open skies' deal

LONDON: In what is widely rated as a "historic breakthrough" and "an epoch making era" in trans-Atlantic air travelling, the latest "open skies " deal will cut air fares to the U.S. from Europe by more than a third. This is happening following the landmark decision by 27-member European Union countries to allow more companies to operate out of London's Heathrow airport — Europe's and the world's largest.

The European Transport Ministers on Thursday endorsed an agreement between the European Union and the U.S. negotiators that aims to further liberalise trans-Atlantic air travel. The measure will open London's Heathrow airport to all airlines by next March. At present only British Airways, Virgin Atlantic (British) and American Airlines, and United Airlines (both American) are allowed to operate the lucrative trans-Atlantic routes.

London's Heathrow currently accounts for 40 per cent of flights between Europe and America. The German national carrier Lufthansa is also keen to operate the trans-Atlantic route from Heathrow. Analysts have stated that such "collected and integrated" facilities to use Heathrow as a "spring board" could initiate "drastic reduction" amounting to over 40 per cent in current trans-Atlantic air fare schedules. To contain competition, British Airways will upgrade economy or tourist class cabins. A drastic drop in "business class" airfare is also widely predicted. The in-flight entertainment facilities will also be improved and business or premium class air travel will see the biggest change.

The American authorities are still insisting on "close knit domestic strategy" and although the latest "open skies" policy is rated as a welcome initiative, still much needs to be done to make trans-Atlantic skies truly open.

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