BMI to seek antitrust immunity with UAL

BMI British Midland, the UK airline, said on Thursday it would seek antitrust immunity with United Airlines of the US on transatlantic routes.

The application would only cover BMI’s US services out of Manchester but is likely to fall on deaf ears in Washington, which will not confer such protection before an “open skies” agreement is in place with the UK.

The request comes ahead of talks between the US and UK governments next week and is designed to increase the pressure on the two sides to fully liberalise the air travel market between the two countries.

BMI was forced to launch transatlantic services out of Manchester in May because it is currently prevented from doing so from its main base at Heathrow.

The current US-UK aviation agreement, dubbed Bermuda II, restricts access from the world’s busiest international airport to just two airlines from each country. Currently, British Airways and Virgin Atlantic from the UK and American Airlines and United Airlines of the US can serve Heathrow.

BMI also revealed on Thursday that if the two governments did reach an open skies deal it would initially start services from Heathrow to five US cities: Washington and Chicago (which are served from Manchester), as well as Miami, Denver and Seattle. Under the terms of Bermuda II, BA currently enjoys a monopoly on the Heathrow-Seattle route.

Meanwhile, BMI said it was extending the number of US destinations it serves over Washington and Chicago, under a codeshare agreement with United Airlines, to 80 from 11. Codesharing allows an airline to sell a ticket on a partner’s flight as its own.
Financial Times