David Charter in Brussels
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Britain reluctantly signed up to the liberalisation of transatlantic flights yesterday, after finding itself completely isolated in its determination to wring more concessions from the United States before agreeing to open up Heathrow.
The Conservatives accused Douglas Alexander, the Transport Secretary, of “caving in” to European states, but he put a brave face on the agreement that he had opposed for months behind the scenes.
Under pressure from British Airways, Mr Alexander had argued that European airlines should be allowed greater access to US internal flights and ownership rights of American airlines in return for open competition on transatlantic routes.
He insisted yesterday that the deal he signed was good for consumers, and that it allowed Britain to withdraw if the US failed to open up to greater competition by 2010.
“This deal is just the first stage. Our goal remains a fully liberalised Open Aviation Area, free of restrictions on ownership and control,” he said. “Following my intervention... we have secured, in effect, not simply a commitment from the Americans to talk but an obligation on the Americans to act in relation to stage two.”
However, the concessions were dismissed almost immediately by John Byerly, the US lead negotiator and assistant secretary for transport affairs.
He said that the Americans were not bound to include any specific demands in the second stage of the “open skies” negotiations, such as raising the 25 per cent limit on foreign control of American airline companies.
Referring to the pull-out sanction negotiated by Mr Alexander, he said: “Suspension provisions are standard fare in all aviation agreements... Our focus is on making the second stage negotiations productive.”
Julian Brazier, the Shadow Aviation Minister, said that the Government had caved in. “Everybody is in favour of a genuine open skies agreement but that is not what this deal is. Britain will lose valuable slots at Heathrow, while America will continue to refuse access to non-American airlines on their gigantic domestic market.
“As British airlines have pointed out, the value of the American concessions is minimal while we will lose a great deal.”
The European Commission said that the deal would result in a 50 per cent increase in the number of passengers flying the Atlantic, rising to 75 million by 2013.
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Isolated UK signs deal on Heathrow
The proud English Britain bows down to the Airport and wants to go Green with few years and still persist that the Iraq war was shoulder to shoulder to with Bush. What pride? I am fascinated. Believe me the education going to drain, HNS lack of funds, the politicians not decided what to do if Brown is really the right candidate after throwing Blaire out of office. What is the next page please? Or do I have to fly the BA to find out?
Firozali A.Mulla MBA PhD, Dar-Es-Salaam, Tanzania
Its amazing how in this country people blame the EU for everything, including American protectionism. Do you seriously believe that the UK would be in a better position to negotiate vis-a-vis the US if it was negotiating on its own? If you do, you are not seeing straight. The EU should have been able to wring more concessions from the US, but bear in mind, this is a victory for the EU consumer, though not for EU business. It is the EU that is promoting free trade, NOT the US. So maybe some people should think again with whom they have and want to have, a special relationship. As for France never losing a battle in Brussels, they were against the most important deal the EU has made in the last 15 years- enlargement! Everyone loses some and wins some within the EU but to win you have to get a majority of other EU capitals, NOT the Eurocrats, on your side- this embedding of competition between nations within institutions is the undersold genius of the EU system.
Chris , WASHINGTON DC,
Paul Holden, Northants - The EU rebate was one example. The opt out of Maastricht - brilliant bit of business.
Does this mean we are going to have more flights out of Heathrow? Apparently I'm not on the flight path, will be soon though. Yet I still get woken past 1am for landing flights.
Scrap the olympics build the airport in thames estuary and a great railway to Liverpool st for the business travellers. Connect it to Eurostar and redevelop disperse areas along the route with affordable/mixed cost housing to tempt developers in. Result great airport good transport and Real regeneration of the East end and cheaper than the Olympics..
Terry, London,
Free trade means price wars, and price wars mean cost cutting. No prizes for guessing who will suffer.
Paul, Milton Keynes,
Bill, I agree with you, it was a racket, one held by 2 UK and 2 US airlines. But a legally binding one. For exactly that reason the EU should have got more from the US. But it is right that the old agreement has gone.
US airlines are afraid of competition, and even the UK's "special relationship" with the US was not powerful enough to bring some equality into the game. Besides, the EU loves screwing the Brits!
Oliver, Spain,
Maybe the UK/Europe should have insisted that Open Skies only applied to airlines not in Chapter 11 or benefiting from other similar state subsidies ? After all, European airlines aren't allowed to receive state subsidies, so that would only be establishing a fair playing field. Come to think of it, they could inist on that being the case for all airlines flying into the EU, irrespective of nationality.
And accusing the UK of being the most protectionist country in the western world is a bit much - I doubt there are many, if any, other countries that freely allow overseas businesses to come in and buy up their major companies !! Rememer Ports of Dubai trying to buy into the US, and the howls of anger that caused in Congress ??
Andy Wardle, Bridgwater, UK
To Bill, Chicago, USA
Claims of a "racket" from the most protectionest country in the western world are a bit rich. The reason for the voting split is that the only potential loser is the UK.
John Kane, Reading, Berks
Any move towards freer trade is valuable, even if it is one-sided. UK travellers will enjoy cheaper flights (despite Gordon Brown) and the UK will benefit from closer business connections with the US. Meanwhile, the US airlines behind their protectionist wall will become flabbier and less efficient....leading on to the day when we can take over. The only losers are quasi-monopolistic European airlines.
Frank Upton, Solihull,
Just another example of the American bully. It is time the world put this arrogant self centred nation on notice that they are not as important as they think. They are one nation amongst many and have long lost their respect and leadership role. It is time we all demanded fair play.
Tim, Cadiz, Spain
At least we can still vote with our wallets. The US government REQUIRES its employees to fly American carriers, so the EU could do the same here - if it really had the guts to stand up to the US. As "Europeans" we can all fly our national carriers instead of US airlines. If no-one wants them, they'll soon pack up and go home as no US airline is going to run unprofitable routes for long. Heck, they're all in Chapter 11 anyway!
Brian, Farnham, UK
US protectionism continues....
T, London,
Yes the EU put Britains best interest last and the US as they have done so often thought only of themselves, and yes labour caved again to what is not best for the UK in the long run, so why is anyone suprised by this.
I worked in the US for the past six years, they are fighting to keep EU carriers out because of how absolutely awful the service is on American flights.
The yanks despite their marketing have rude and bad service, mostly old planes, usually not on time and very very expensive domestic flights.
No wonder they are trying to hold onto the market, they have seen what happens when a former bastion of American greatness gets real competition it caves, just look at the Detroit car makers, bloated, poor quality, bad service and boring designs. Toyota and Honda has done what BA, Luft, Virgin etc will do to United and AA etc, show the yanks that they have been ripped off for years.
Paul Phillips, Birmingham, UK
Another joke played by the EU with the Americans not giving anything in return.
How much longer do we have to put up with this before the Brits wake up and demand home rule?
Cliff, brighton,
To Bill In Chicago,
does that mean you look forward to the "US internal market monopoly racket" being terminated as well?
stephen, st albans herts, uk
Yet another defeat of the UK interests at the hands of the EU. Can anyone think of any "battle" we have won against the Eurocrats? Ever. If France had been the one losing so much, there is no way that this deal would have gone through.
Paul Holden, Northants,
Should not 26 to 1 tell you that it was a racket. Be grateful you had such a long run.
Bill, Chicago, USA
Our governmental negotiators have created little wealth for the country until today. What makes anyone think they could begin now?
Edwin Thornber, Bucharest, Romania