COLIN BAKER LONDON
France and the USA signed an open skies agreement in October, opening the way for antitrust immunity for the SkyTeam Alliance and putting pressure on the UK to conclude a similar deal.
SkyTeam partners Air France and Delta Air Lines now plan to obtain antitrust immunity for their alliance by the end of the year. The US Department of Transportation (DoT) will not put a deadline on when a decision on immunity will come, but acknowledges that with open skies in place it is now a "priority" matter. SkyTeam's other European partners, Alitalia and CSA Czech Airlines, have also filed for immunity with Delta.
If successful, SkyTeam will join the Star and KLM/Northwest alliances in gaining antitrust freedom on the North Atlantic, leaving oneworld's American Airlines and British Airways at an increasing disadvantage.
UK-US open skies has long been held up over the issue of freeing slots at London's congested Heathrow Airport. American and BA abandoned a previous claim for antitrust immunity due to the level of slot surrender imposed by Brussels. However, UK and US officials met in London near the end of October for informal talks, with a view to establishing a timetable for further progress.
Both sides are under pressure to reach agreement by the end of the year, ahead of a European court ruling - now expected in January - that is likely to rule that open skies deals negotiated by member states conflict with the European single air market. This would effectively hand Brussels the final say over such deals.
Air Travelers Association president David Stempler said he "hopes that the momentum gained by this new US-France open skies agreement will be a catalyst to encourage an agreement between the US and the UK."
The latest regulatory deadline in the USA is 9 November, when American and BA will have to respond to the most recent round of comments on and objections to their antitrust application. The deadline was extended in the wake of the 11 September attacks, although the DoT has made it clear that it wants to minimise any delays.
The latest talks are likely to examine the changed environment in the aviation industry after 11 September. Analysts say that American and BA are likely to reappraise the benefits apportioned to either side, as both have downsized significantly. United and bmi british midland, which are also preparing to file for antitrust immunity, are likely to be in a similar situation.
At the same time, BA has reopened talks with KLM, which is closely allied to Northwest Airlines, further complicating the picture.
Source: Airline Business
