EU-US Open Skies Agreement
Encyclopedia
The EU–US Open Skies Agreement is an air transport agreement between the European Union
and the United States
. The agreement allows any airline of the European Union and any airline of the United States to fly between any point in the European Union and any point in the United States. Airlines of the United States are also allowed to fly between points in the European Union. Airlines of the European Union are also allowed to fly between the United States and non-EU countries like Switzerland
. The treaty disappointed European airlines as it was tilted in favor of United States airlines: while they are allowed to operate intra-EU flights, European airlines are not permitted to operate intra-US flights nor are they allowed to purchase a controlling stake in a US operator. The Agreement replaced and superseded previous open skies agreements between the US and individual European countries.
The initial agreement was signed in Washington, D.C.
, on April 30, 2007. The agreement became effective March 30, 2008. Phase two was signed in June 2010.
has been opened to full competition. This ended the exclusive right granted for only two US airlines and two UK airlines (Bermuda II
) to fly transatlantic services out of Heathrow. These four airlines were British Airways
, Virgin Atlantic Airways
, United Airlines
, and American Airlines
.
This right also exists for third country carriers with incumbent fifth freedom rights to carry passengers between London Heathrow and the United States. These rights were previously exercised by Air New Zealand
(between Los Angeles
-London Heathrow), Air India
(between New York
-London Heathrow), and Kuwait Airways
(also between New York
and London Heathrow). El Al
also had such rights but chose not to use them, and Iran Air
technically also had similar rights, but is prohibited from flying to the US due to US government economic sanctions against Iran
.
Continental Airlines
announced it will begin service to London Heathrow from Newark
and Houston
. Continental also announced that it will begin seasonal service to London Heathrow from Cleveland
.
Delta Air Lines
announced it will begin service to London Heathrow from Atlanta
and New York (JFK)
.
Northwest Airlines
announced it will begin service to London Heathrow from Detroit
, Minneapolis/St. Paul and Seattle
. Northwest ended service between Seattle and London Heathrow in January 2008. Northwest completed its merger with Delta on January 31, 2010 and service between London and Detroit and Minneapolis/St. Paul are now operated by Delta Air Lines
.
US Airways
announced it will begin service to London Heathrow from Philadelphia
.
Nevertheless, expansion of transatlantic flights to or from Heathrow will continue to be limited by lack of runway
capacity (currently its two runways are operating at over 98% of its capacity), government limits (especially when expansion plans to build a third runway and a sixth terminal was cancelled on 12 May 2010 by the new coalition government), and the fact that many take-off slots are owned by incumbent airlines. British Airways holds 40 percent of slots, while bmi
holds 12 percent.
is trying to buy slots from Varig
.
Meanwhile, Virgin Atlantic had said that it intended to add daily flights to New York
from several European cities, such as Paris
, Frankfurt
, Milan
, Amsterdam
, and Zurich
, but has since ruled out such services until 2010 at the earliest.
KLM announced new service from Dallas/Fort Worth
to Amsterdam.
' 2007 plan to buy Iberia Airlines
had to be shelved when it became apparent that a Spanish investment bank would prevent the deal. In 2008 a merger was proposed instead, which would retain both brands along the lines of the 2004 Air France
and KLM merger.
competition will have any effect on fare
s. Some believe the market is already highly competitive
. Other sources have been predicting radical changes, such as €10 flights.
In April 2007, Ryanair
confirmed it was planning to start a new airline (RyanAtlantic) that would operate long-haul flights between Europe and the United States. According to Ryanair's chief executive, Michael O'Leary
, the airline intends to start flying in 2010, with flights to five or six US cities, including Baltimore
and Providence
. The carrier, unlike traditional low-cost airlines, would sell both economy and premium(B&B)-class
tickets.
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
and the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. The agreement allows any airline of the European Union and any airline of the United States to fly between any point in the European Union and any point in the United States. Airlines of the United States are also allowed to fly between points in the European Union. Airlines of the European Union are also allowed to fly between the United States and non-EU countries like Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
. The treaty disappointed European airlines as it was tilted in favor of United States airlines: while they are allowed to operate intra-EU flights, European airlines are not permitted to operate intra-US flights nor are they allowed to purchase a controlling stake in a US operator. The Agreement replaced and superseded previous open skies agreements between the US and individual European countries.
The initial agreement was signed in Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
, on April 30, 2007. The agreement became effective March 30, 2008. Phase two was signed in June 2010.
London–United States
Under the agreement, London Heathrow AirportLondon Heathrow Airport
London Heathrow Airport or Heathrow , in the London Borough of Hillingdon, is the busiest airport in the United Kingdom and the third busiest airport in the world in terms of total passenger traffic, handling more international passengers than any other airport around the globe...
has been opened to full competition. This ended the exclusive right granted for only two US airlines and two UK airlines (Bermuda II
Bermuda II
Bermuda II was a bilateral air transport agreement between the governments of the United Kingdom and the United States signed on 23 July 1977 as a renegotiation of the original 1946 Bermuda air services agreement...
) to fly transatlantic services out of Heathrow. These four airlines were British Airways
British Airways
British Airways is the flag carrier airline of the United Kingdom, based in Waterside, near its main hub at London Heathrow Airport. British Airways is the largest airline in the UK based on fleet size, international flights and international destinations...
, Virgin Atlantic Airways
Virgin Atlantic Airways
Virgin Atlantic Airways Limited is a British airline owned by Sir Richard Branson's Virgin Group and Singapore Airlines...
, United Airlines
United Airlines
United Air Lines, Inc., is the world's largest airline with 86,852 employees United Air Lines, Inc., is the world's largest airline with 86,852 employees United Air Lines, Inc., is the world's largest airline with 86,852 employees (which includes the entire holding company United Continental...
, and American Airlines
American Airlines
American Airlines, Inc. is the world's fourth-largest airline in passenger miles transported and operating revenues. American Airlines is a subsidiary of the AMR Corporation and is headquartered in Fort Worth, Texas adjacent to its largest hub at Dallas/Fort Worth International Airport...
.
This right also exists for third country carriers with incumbent fifth freedom rights to carry passengers between London Heathrow and the United States. These rights were previously exercised by Air New Zealand
Air New Zealand
Air New Zealand Limited is the national airline and flag carrier of New Zealand. Based in Auckland, New Zealand, the airline operates scheduled passenger flights to 26 domestic destinations and 24 international destinations in 15 countries across Asia, Europe, North America and Oceania, and is...
(between Los Angeles
Los Ángeles
Los Ángeles is the capital of the province of Biobío, in the commune of the same name, in Region VIII , in the center-south of Chile. It is located between the Laja and Biobío rivers. The population is 123,445 inhabitants...
-London Heathrow), Air India
Air India
Air India is the flag carrier airline of India. It is part of the government of India owned Air India Limited . The airline operates a fleet of Airbus and Boeing aircraft serving Asia, Australia, Europe and North America. Its corporate office is located at the Air India Building at Nariman...
(between New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
-London Heathrow), and Kuwait Airways
Kuwait Airways
Kuwait Airways is the national airline of Kuwait, with its head office on the grounds of Kuwait International Airport, Al Farwaniyah Governorate. It operates scheduled international services throughout the Middle East, to the Indian subcontinent, Europe, Southeast Asia and North America, from its...
(also between New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
and London Heathrow). El Al
El Al
El Al Israel Airlines Ltd , trading as El Al , is the flag carrier of Israel. It operates scheduled domestic and international services and cargo flights to Europe, North America, Africa and the Far East from its main base in Ben Gurion International Airport...
also had such rights but chose not to use them, and Iran Air
Iran Air
Iran Air , formally Airline of the Islamic Republic of Iran is the flag carrier airline of Iran, operating services to 60 destinations, 35 international and 25 domestic. The cargo fleet operates services to 20 scheduled and 5 charter destinations...
technically also had similar rights, but is prohibited from flying to the US due to US government economic sanctions against Iran
Sanctions against Iran
This article outlines economic, trade, scientific and military sanctions against Iran, which have been imposed by the U.S. government, or under U.S. pressure by the international community through the United Nations Security Council...
.
Continental Airlines
Continental Airlines
Continental Airlines was a major American airline now merged with United Airlines. On May 3, 2010, Continental Airlines, Inc. and UAL, Inc. announced a merger via a stock swap, and on October 1, 2010, the merger closed and UAL changed its name to United Continental Holdings, Inc...
announced it will begin service to London Heathrow from Newark
Newark Liberty International Airport
Newark Liberty International Airport , first named Newark Metropolitan Airport and later Newark International Airport, is an international airport within the city limits of both Newark and Elizabeth, New Jersey, United States...
and Houston
George Bush Intercontinental Airport
George Bush Intercontinental Airport, is a Class B international airport in Houston, Texas, serving the Houston–Sugar Land–Baytown metropolitan area, the sixth-largest metropolitan area in the United States. Located north of Downtown Houston between Interstate 45 and U.S. Highway 59...
. Continental also announced that it will begin seasonal service to London Heathrow from Cleveland
Cleveland Hopkins International Airport
Cleveland Hopkins International Airport is a public airport located nine miles southwest of the central business district of Cleveland, a city in Cuyahoga County, Ohio, United States. The airport lies just within the city limits of Cleveland...
.
Delta Air Lines
Delta Air Lines
Delta Air Lines, Inc. is a major airline based in the United States and headquartered in Atlanta, Georgia. The airline operates an extensive domestic and international network serving all continents except Antarctica. Delta and its subsidiaries operate over 4,000 flights every day...
announced it will begin service to London Heathrow from Atlanta
Hartsfield-Jackson Atlanta International Airport
Hartsfield–Jackson Atlanta International Airport , known locally as Atlanta Airport, Hartsfield Airport, and Hartsfield–Jackson, is located seven miles south of the central business district of Atlanta, Georgia, United States...
and New York (JFK)
John F. Kennedy International Airport
John F. Kennedy International Airport is an international airport located in the borough of Queens in New York City, about southeast of Lower Manhattan. It is the busiest international air passenger gateway to the United States, handling more international traffic than any other airport in North...
.
Northwest Airlines
Northwest Airlines
Northwest Airlines, Inc. was a major United States airline founded in 1926 and absorbed into Delta Air Lines by a merger approved on October 29, 2008, making Delta the largest airline in the world...
announced it will begin service to London Heathrow from Detroit
Detroit Metropolitan Wayne County Airport
Detroit Metropolitan Wayne County Airport , usually called Detroit Metro Airport, Metro Airport locally, or simply DTW, is a major international airport covering in Romulus, Michigan, a suburb of Detroit. It is Michigan's busiest airport....
, Minneapolis/St. Paul and Seattle
Seattle-Tacoma International Airport
The Seattle–Tacoma International Airport , also known as Sea–Tac Airport or Sea–Tac , is an American airport located in SeaTac, Washington, at the intersections of State Routes 99 and 509 and 518, about west of Interstate 5...
. Northwest ended service between Seattle and London Heathrow in January 2008. Northwest completed its merger with Delta on January 31, 2010 and service between London and Detroit and Minneapolis/St. Paul are now operated by Delta Air Lines
Delta Air Lines
Delta Air Lines, Inc. is a major airline based in the United States and headquartered in Atlanta, Georgia. The airline operates an extensive domestic and international network serving all continents except Antarctica. Delta and its subsidiaries operate over 4,000 flights every day...
.
US Airways
US Airways
US Airways, Inc. is a major airline based in the U.S. city of Tempe, Arizona. The airline is an operating unit of US Airways Group and is the sixth largest airline by traffic and eighth largest by market value in the country....
announced it will begin service to London Heathrow from Philadelphia
Philadelphia International Airport
Philadelphia International Airport is a major airport in Philadelphia, Pennsylvania, United States, and is the largest airport in the Delaware Valley region and in Pennsylvania...
.
Nevertheless, expansion of transatlantic flights to or from Heathrow will continue to be limited by lack of runway
Runway
According to ICAO a runway is a "defined rectangular area on a land aerodrome prepared for the landing and take-off of aircraft." Runways may be a man-made surface or a natural surface .- Orientation and dimensions :Runways are named by a number between 01 and 36, which is generally one tenth...
capacity (currently its two runways are operating at over 98% of its capacity), government limits (especially when expansion plans to build a third runway and a sixth terminal was cancelled on 12 May 2010 by the new coalition government), and the fact that many take-off slots are owned by incumbent airlines. British Airways holds 40 percent of slots, while bmi
Bmi (airline)
British Midland Airways Limited , is an airline based at Donington Hall in Castle Donington in the United Kingdom, close to East Midlands Airport, and a fully owned subsidiary of Lufthansa...
holds 12 percent.
Other routes
Several airlines are changing their routes and schedules now that the agreement has come into effect. Many airlines are also buying take-off and landing slots at Heathrow. For example, bmiBmi (airline)
British Midland Airways Limited , is an airline based at Donington Hall in Castle Donington in the United Kingdom, close to East Midlands Airport, and a fully owned subsidiary of Lufthansa...
is trying to buy slots from Varig
Varig
VARIG was the first airline founded in Brazil, in 1927. From 1965 until 1990 it was Brazil's leading and almost only international airline...
.
Meanwhile, Virgin Atlantic had said that it intended to add daily flights to New York
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
from several European cities, such as Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
, Frankfurt
Frankfurt
Frankfurt am Main , commonly known simply as Frankfurt, is the largest city in the German state of Hesse and the fifth-largest city in Germany, with a 2010 population of 688,249. The urban area had an estimated population of 2,300,000 in 2010...
, Milan
Milan
Milan is the second-largest city in Italy and the capital city of the region of Lombardy and of the province of Milan. The city proper has a population of about 1.3 million, while its urban area, roughly coinciding with its administrative province and the bordering Province of Monza and Brianza ,...
, Amsterdam
Amsterdam
Amsterdam is the largest city and the capital of the Netherlands. The current position of Amsterdam as capital city of the Kingdom of the Netherlands is governed by the constitution of August 24, 1815 and its successors. Amsterdam has a population of 783,364 within city limits, an urban population...
, and Zurich
Zürich
Zurich is the largest city in Switzerland and the capital of the canton of Zurich. It is located in central Switzerland at the northwestern tip of Lake Zurich...
, but has since ruled out such services until 2010 at the earliest.
KLM announced new service from Dallas/Fort Worth
Dallas-Fort Worth International Airport
Dallas/Fort Worth International Airport is located between the cities of Dallas and Fort Worth, Texas, and is the busiest airport in the U.S. state of Texas...
to Amsterdam.
Industry consolidation
The agreement seems to have generated renewed interest in airline industry consolidation, although mergers or acquisitions among international flag-carrier airlines are difficult to facilitate in the face of sometimes emotional national and financial interests. British AirwaysBritish Airways
British Airways is the flag carrier airline of the United Kingdom, based in Waterside, near its main hub at London Heathrow Airport. British Airways is the largest airline in the UK based on fleet size, international flights and international destinations...
' 2007 plan to buy Iberia Airlines
Iberia Airlines
Iberia Líneas Aéreas de España, S.A., commonly known as Iberia, is the flag carrier airline of Spain. Based in Madrid, it operates an international network of services from its main bases of Madrid-Barajas Airport and Barcelona El Prat Airport....
had to be shelved when it became apparent that a Spanish investment bank would prevent the deal. In 2008 a merger was proposed instead, which would retain both brands along the lines of the 2004 Air France
Air France
Air France , stylised as AIRFRANCE, is the French flag carrier headquartered in Tremblay-en-France, , and is one of the world's largest airlines. It is a subsidiary of the Air France-KLM Group and a founding member of the SkyTeam global airline alliance...
and KLM merger.
Fares
There is little consensus about whether increased transatlanticTransatlantic flight
Transatlantic flight is the flight of an aircraft across the Atlantic Ocean. A transatlantic flight may proceed east-to-west, originating in Europe or Africa and terminating in North America or South America, or it may go in the reverse direction, west-to-east...
competition will have any effect on fare
Fare
A fare is the fee paid by a passenger allowing him or her to make use of a public transport system: rail, bus, taxi, etc. In the case of air transport, the term airfare is often used.-Uses:...
s. Some believe the market is already highly competitive
Competition
Competition is a contest between individuals, groups, animals, etc. for territory, a niche, or a location of resources. It arises whenever two and only two strive for a goal which cannot be shared. Competition occurs naturally between living organisms which co-exist in the same environment. For...
. Other sources have been predicting radical changes, such as €10 flights.
In April 2007, Ryanair
Ryanair
Ryanair is an Irish low-cost airline. Its head office is at Dublin Airport and its primary operational bases at Dublin Airport and London Stansted Airport....
confirmed it was planning to start a new airline (RyanAtlantic) that would operate long-haul flights between Europe and the United States. According to Ryanair's chief executive, Michael O'Leary
Michael O'Leary (Ryanair)
Michael O'Leary is an Irish businessman and the Chief Executive Officer of the Irish airline Ryanair. He is one of Ireland's wealthiest businessmen.-Early life:...
, the airline intends to start flying in 2010, with flights to five or six US cities, including Baltimore
Baltimore
Baltimore is the largest independent city in the United States and the largest city and cultural center of the US state of Maryland. The city is located in central Maryland along the tidal portion of the Patapsco River, an arm of the Chesapeake Bay. Baltimore is sometimes referred to as Baltimore...
and Providence
Providence, Rhode Island
Providence is the capital and most populous city of Rhode Island and was one of the first cities established in the United States. Located in Providence County, it is the third largest city in the New England region...
. The carrier, unlike traditional low-cost airlines, would sell both economy and premium(B&B)-class
Travel class
A travel class is a quality of accommodation on public transport. The accommodation could be a seat or a cabin for example. Higher travel classes are more comfortable and more expensive.-Airline booking codes:...
tickets.