On March 30, 2008, a new Europe and US Air Transport Agreement will take effect. Air carriers within EU and the US will be able to fly between countries without restrictions. This means air carriers that have been shut out of some markets will now be able to expand their routes. Flights between Heathrow and the US are expected to rise by 20% this year.

Currently British Airways, Virgin Atlantic, United Airlines and American Airlines have exclusive rights to fly transatlantic to and from Heathrow. Starting in April this year, other airlines like BMI, Continental Airlines and Northwest Airlines will be allowed to launch direct flights between Heathrow and the US.

Who is the winner is all this, if any? Well only time will tell but passengers, especially business travelers, will have more options, more nonstops. Also with additional flights, you would think there would be more competition and thus lower fares! And of course more jobs.

However there needs to be additional investment by both the airlines and airports to support the additional traffic. This will take some time for the airlines to negotiate space and landing slots at the busy airports.

Anther question is the high cost of jet fuel; can the airlines afford any routes that are not at capacity? I don’t see airfare going down overall, but there should be more convenient routes between EU and US airports.

Tags: General Travel

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