The Open Skies Agreement

The Open Skies Agreement - What is it?
The Open Skies Agreement is an Air Transport agreement enforcing more liberal rules for transatlantic air travel, allowing for free movement of flights between Europe and the United States and seeing an end to restrictions on international route rights. The agreement would therefore put a stop to exclusive rights for larger airlines such as British Airways and Virgin to fly transatlantic out of Heathrow, and allow other airlines to expand their services over to the United States, particularly the business-only airlines. The result of the Open Skies Agreement will be a greater choice for passengers, particularly business travellers, from a higher number of airlines and fairer pricing determined by general market forces, with less government intervention. It is also thought that the agreement would have a strong economic effect in both the US and the EU member states.

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The Open Skies Agreement - What does this mean for passengers?
In short, the agreement will generally 'open up' the skies across the Atlantic to more airlines. Both US and EU airlines will be able to fly in and out of every city in both America and each European Union country. This would result in highly accessible air travel and a sense of healthy competition, with ultimately more choice and hopefully better service for passengers. Carriers such as BMI, Continental and Northwest are already poised to launch new transatlantic flights from Heathrow as a result of the agreement. Fares will be set according to market demand; however prices for economy travel are not expected to come down that much. Airlines can also code-share or lease planes with other airlines, and there can be sales offices for carriers in either country.

The Open Skies Agreement - When will it come into effect?
The Open Skies Agreement will come into effect in March 2008.The deal has been mostly welcomed by the European Union, although some of the larger airlines are critical and may suffer from increased competition. Benefits may include business fare reductions of around 15% and it is expected that there may be a 50% net increase in business, and the creation of 80,000 more jobs on both sides of the Atlantic.

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