BA's Open Skies Hopes are Dashed

America's refusal to allow foreign airlines to own US carriers is likely to scupper chances of a deal to open up the transatlantic market, says British Airways.

BA has now formally rejected the Washington proposal to give foreign airlines control but not ownership of US airlines.

Without a deal on ownership of American carriers, it is unlikely that Britain will accept a wider agreement to open the market.

That would have freed transatlantic routes to unfettered competition, allowing any American or UK airline access to Heathrow. BA saw an openskies deal as a path towards merging with American Airlines, the country's largest carrier.

The problem for BA is that an open-skies deal would initially slash its profits because giant American carriers would gain access to Heathrow, where they do not have landing slots at present, and might cut prices.

Andrew Cahn, BA's director of government and industry affairs, said: 'The American proposals are a missed opportunity. We are in favour of a single transatlantic market.

'The US proposals on ownership would hamstring the whole deal.'

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