BA Angry at One-Sided Open Skies Deal

BRITISH Airways chairman Martin Broughton will today urge the government to halt the proposed ‘open skies’ agreement between Europe and the US.

The flag carrier is angry that Brussels is prepared to approve the plan which could lead to cheaper flights without the US ceding any ground to European carriers hoping to expand in America.

Using a speech to a leading aviation conference, Broughtonwants to pile the pressure on Transport Minister Douglas Alexander ahead of a crucial meeting with fellow European politicians to ratify the accord in Brussels on March 22.

BA is unhappy that US carriers will be given far greater access to key routes throughout Europe.

While BA will be allowed to own just 25pc of voting stock in US carriers, they will be able to buy up to 49pc of their European counterparts.

In addition, loyal US government officials will still be required to fly on US airlines, while British bureaucrats have long been encouraged simply to take the cheapest available option.

American negotiators say BA is scared stiff by the prospect of losing is exalted position as one of only four airlines allowed to fly to the US from Heathrow.

BA counters that it would be happy to dilute its profitable position, but only if the US gives ground as well.

The UK currently accounts for 40pc of all transatlantic traffic.

A BA spokesman said: ‘The US has got everything it wants and we have got nothing.’ The company’s boss, Willie Walsh, recently admitted he thought BA could be a takeover target. He would like to fashion a merger with American Airlines, but US protectionism is getting in the way.

(c) 2007 Daily Mail; London (UK). Provided by ProQuest Information and Learning. All rights Reserved.