David Robertson
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Bmi and United Airlines have applied to the US Government to form an alliance that will effectively merge their transatlantic operations, The Times has learnt.
In a submission to the US Department of Transport on Monday, the airlines sought permission to create an alliance from next March. It means that passengers would deal with just one airline when they booked tickets although the companies would remain independent.
The alliance is possible because of a deal between the US and the European Union to liberalise air travel. The new “open skies” rules start next March and bmi, formerly British Midland, is “paving the way” for an alliance now.
The introduction of open skies has put bmi in an attractive position because it holds 12 per cent of slots at Heathrow. Other airlines are already positioning themselves to buy bmi should Sir Michael Bishop, the chairman and controlling shareholder, decide to sell.
Bmi believes that an alliance with United will strengthen its position as it substantially expands the number of services it can offer. Bmi passengers would have access to all of United’s destinations and routes but would need to buy only one ticket.
Nigel Turner, the chief executive of bmi, said: “This paves the way to an alliance; it does not guarantee it. We want to put in place all the steps now to fully take advantage of open skies.”
Bmi and United are already part of the Star Alliance, a wider collective of airlines, but the proposed deal is a much closer partnership. An attempt to create a United-bmi alliance five years ago was blocked by the US until an open skies agreement was reached.
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