BMI wants more US routes from open skies
BMI British Midland will seek anti-trust immunity with United Airlines as well as a full open skies agreement ahead of informal UK/US government talks taking place this week to deregulate the transatlantic air market.
BMI said it plans to serve Miami, Denver and Seattle as well as existing US gateways Washington and Chicago, if deregulation talks are successful. Mark Pulling, general manager of BMI Cargo, said Chicago was already averaging 70% take-up and that Miami would “plug us into South America.”
BMI said applications for slots between Heathrow and the Middle East and Far East had already been made as part of an alternative strategy should an open skies agreement fall through.
BMI chairman Sir Michael Bishop said : “We will press for this to be granted as soon as possible and certainly no later than any immunity granted to British Airways.
“We will also be pressing for a full open skies agreement.
This was always our final objective, but we recognised a gradual liberalisation in the form of an interim mini-deal was more likely.
“Given the latest status of BA/AA, and given that the UK government has accepted that the red herring issues of domestic cabotage and foreign ownership are just that, we believe open skies is achievable.”
Bishop is hopeful an agreement will be reached this year so that BMI is ready for the new services next summer.
British and US teams are negotiating this week to liberalise Bermuda 2, the air treaty that allows only four airlines to fly Heathrow/US routes.
An open skies freight deal agreed ahead or instead of full liberalisation between the US and the UK has been given a thumbs-down by Virgin boss Sir Richard Branson.
“We have to have full liberalisation. Governments should not interfere with the aviation industry – it should be no different from other businesses.”
Branson also hit out at the BA/AA tie up. “We do not believe it is in the interests of the freight business, ” he said.
Posted: 25/06/2001
IFW