BA's Walsh Makes Final Plea Against Open Skies Treaty

BRITISH Airways chief executive Willie Walsh has made a last-ditch appeal as lobbying intensifies ahead of Thursday's crucial vote by the European Union's 27 transport ministers on open skies.

In letters to Transport Secretary Douglas Alexander and the EC's vice-president Jacques Barrot, Mr Walsh argues that the mooted benefits to consumers do not justify striking a one-way deal which will open up Heathrow to US carriers but not allow EU carriers into the US domestic market.

At present only UK airlines BA and Virgin Atlantic and two US carriers, American Airlines and United Airlines, are allowed to fly between Heathrow and America.

His appeal comes amid talk in Brussels that Prime Minister Tony Blair is planning to call President George W Bush to say the UK can only sign up to the current deal if America commits to liberalising its own market before US carriers fly into Heathrow.

Speaking to the transport select committee last week, Mr Alexander outlined a "phased approach'' to "unlock some passenger benefits now'' but also ensure "there is a clear mechanism in place'' to achieve full liberalisation.

If Britain, which handles 40pc of the EU-US traffic, opposes the current deal, it could find itself outvoted because, in an unusual step, the EC is moving to allow the vote to be decided by qualified majority voting.

Mr Walsh argues that the UK Civil Aviation Authority's assessment that the deal on the table will deliver pounds 250m of annual consumer benefits to the UK is overstated.

Describing this sum as modest in relation to the pounds 9bn UK-US market, Mr Walsh said: "This is an insufficient prize to justify an agreement that grants disproportionate market opportunities to US airlines.''

He said BA fully supported a properly liberalised Open Aviation Area between the EU and America, which would deliver euro15bn ( pounds 10.3bn) of benefits over five years.

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