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Sat, Mar 17, 2007

Several US Airlines Eager For Open Skies

But Congress Has Concerns

When it came to soliciting support for a controversial plan to ease restrictions on access to US and European airports, it appears several US carriers were pretty easily bought. In fact, it seems all it took was a single word: "Heathrow."

Media reports state Continental Airlines, United Airlines and Delta Air Lines have jumped on the bandwagon for the tentative "Open Skies" deal announced earlier this month between the US and the European Union. The swaying factor appears to be the possibility those carriers would be able to begin flights into London's Heathrow Airport... territory currently claimed almost exclusively by British Airways, and codeshare partner American Airlines. (United also flies a limited schedule into Heathrow.)

"The carrier is confident that the current US-EU agreement establishes a fair opportunity for it to compete in all the important markets in the EU," Continental representatives said in a prepared statement, according to the Houston Chronicle.

As Aero-News reported, the airline had expressed reservations over an earlier proposal, which would have cleared the way for Virgin America to begin US flights.

Not everyone is jumping on the Open Skies bandwagon, however. The Air Line Pilots Association -- union for most pilots flying for US carriers -- said this week it opposes the plan, due to ambiguities over rules governing foreign ownership of US carriers.

"The lack of clarity sets the stage to allow greater foreign control of US airlines and prompts serious concern about its effect on U.S. jobs in the airline industry," said ALPA president Captain John Prater.

Several members of the House of Representatives have also expressed concern over the 'ambiguity' of foreign ownership rules. Rep. James Oberstar (D-MN), chairman of the committee on Transportation and Infrastructure, wrote a letter this week to Transportation Secretary Mary Peters to that effect.

"Without further assurance that the law ... on foreign control of US airlines will not be changed, we cannot support the agreement," the letter said, reports The Associated Press. Representatives Jerry Costello (D-IL) and Frank LoBiondo (R-NJ) also signed the letter.

The Open Skies agreement, as currently written, would allow US airlines to fly from anywhere in the US to any point within the EU, and vice-versa. Rules governing how much airlines may charge on those flights would also be relaxed -- a move airlines say would lead to lower fares, although critics fear that rule might have the opposite effect.

Transportation ministers in the EU are scheduled to meet to decide on the plan March 22.

FMI: www.continental.com, www.delta.com, www.united.com, www.house.gov

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