Says EU-US Meetings Offer Historic Opportunity For Change

Heathrow's second biggest airline, bmi, has urged EU and US negotiating teams to "seize the historic opportunity" offered by Monday's talks on open skies across the Atlantic. The airline says negotiators have a real opportunity to bring to an immediate end the "illegal agreement" that limits the number of airlines that can provide competitive services from Heathrow to the US.

The Bermuda II agreement has been in place since 1977 and allows only the UK airlines, British Airways and Virgin Atlantic, and two US airlines, to serve the US from Heathrow. The agreement was judged illegal by the European Court of Justice in November 2003, but no action has been taken to scrap the restrictive conditions it contains. To do so would bring about much needed competition and enable bmi to provide point to point and network connecting competition from the airline's main operating base at Heathrow, according to the airline.

The EU and US will meet in Brussels this week after a gap of 18 months to try to bring about an open skies agreement between the EU and the US. Despite agreements for free and open competition between most EU countries and the US, access to Heathrow remains "the gift of the privileged few," according to bmi.

"It's an absolute disgrace bmi is denied the opportunity to compete because of an agreement that has been declared illegal, and yet still nothing has been done to consign it to the scrapheap," said Tim Bye, deputy chief executive officer of bmi, in a statement to Aero-News.

"The Bermuda II agreement has protected airlines operating to the US from Heathrow from the reality of genuine competition for far too long," he continued. "Heathrow is our main operating base where we are the second biggest carrier by a long way. Yet we cannot develop services on our expanding long haul network to one of our most important trading nations, because of this outdated and prehistoric piece of illegal legislation," he added. "Only bmi is able to provide UK network competition at Heathrow to the US, yet this continues to be stifled because it does not suit the two UK airlines that benefit from the protection it gives them. The EU and US must ensure that the Bermuda II agreement is ripped up and put greater consumer choice at the top of the agenda. We are ready, willing and able to provide that choice."

"We have written to M. Barrot encouraging swift progress in negotiations with the US Administration. Also, we have reminded Mr. Darling that we expect the UK to terminate the illegal Bermuda II agreement forthwith. We plan to see members of the US Administration later this month to add bmi's support for a truly historic agreement, liberalizing air services between the world's two greatest trading blocs."

The airline has also said it will vehemently oppose attempts to rekindle the alliance ambitions of British Airways and American Airlines without being able to "compete on a level playing field, helping to protect consumer interests," according to the statement.

FMI: www.flybmi.com