UK Won't Block Open Skies Deal

The UK is set to drop its opposition to the EU's proposed 'open skies' aviation deal with the US when EU transport ministers meet on Thursday, diplomats said.

'We are not expecting the UK to block the proposed agreement,' one diplomat said.

Under current arrangements, only British Airways PLC, Virgin Atlantic, United Airlines and American Airlines are allowed to fly to the US from the UK's Heathrow airport.

BA and Virgin opposed the new proposal, claiming the US is not offering enough concessions on access to its own domestic market. At the weekend, The Sunday Times said UK prime minister Tony Blair would today press US president George Bush to commit to further liberalisation of the American aviation industry.