Historic Open Skies agreement has clear benefits for passengers

The much-publicized Open Skies Agreement between the US and the European Union starts this week, lifting bilateral restrictions on flights between the two areas. What will be the impact?

The agreement allows US airlines to expand nonstop service from their hubs to coveted destinations, particularly those favored by higher-paying business travelers.

“With Open Skies, we are removing the barriers and restrictions to transatlantic travel, and the consumer will be the real winner, with a greater choice of gateways to European destinations,” said Jean-Philippe Perol, US Chairman of the European Travel Commission.

Other implications?

• Some immediate reduced fares. Bmi, for example, announced a new fare sale in conjunction with Open Skies. The airline is offering a UK transatlantic fare sale starting at $404 roundtrip beginning today through April 10, 2008 for travel from May 7 through the end of 2008. “The great thing about these two fare sales is they are valid for travel through all of 2008,” says pr spokeswoman Nancy Vaughan in a press release.

• Until now, only British Airways, Virgin Atlantic, American Airlines and United Airlines could operate transatlantic flights from Heathrow. Starting this month, Air France will start daily nonstop service from Los Angeles to Heathrow. British Airways, for its part, is launching a new airline called OpenSkies in June that will fly nonstop JFK to Paris or Brussels, using a B-757 in a three-class configuration of 82 seats, with only 30 in economy class and the rest in business with lie-flat beds and premium economy.

• American Airlines is doubling frequency on their route into London Stansted Airport and Eos Airlines is adding a new route from Newark Liberty International Airport into Stansted. US Airways, Northwest Airlines, Continental and United are all launching new service to Heathrow, and Zoom Airlines is launching new seasonal routes to London Gatwick from Fort Lauderdale and San Diego.

• European carriers, for now, seem to prefer to add more code share partnerships, according to International Travel Daily News. Lufthansa will code share with United Airlines on 28 weekly flights from Paris Charles de Gaulle, and Air France will sell two flights from Brussels and 13 direct flights between the UK and Ireland and the US operated by Delta.

• Aer Lingus and JetBlue Airways have a deal that is quick and easy for both carriers. The deal links both their websites and allows passengers to make a single Internet booking on aerlingus.com to and from Ireland and more than 40 continental US destinations.

• Although logic dictates lower prices as a result of increased competition, high fuel prices and added airport surcharges, at Heathrow, for example, are tempering any immediate fare decreases, according to media reports.

• But passenger growth will continue. The FAA expects to see transatlantic passenger growth of about seven percent for the next four years on US and foreign carriers, with US carriers increasing international capacity more than eight percent in 2008.

Report by David Wilkening