BA Chairman Bashes Open Skies Deal

British Airways chairman Martin Broughton today in a speech in London criticized the Open Skies deal reached Friday between European Union and United States negotiators as a "template designed to bolster U.S. interests," according to a Reuters report.

Broughton said Europe had won only "miniscule concessions dressed up as significant breakthroughs," and cited little progress on contentious issues from prior Open Skies negotiations, including the inability of foreign carriers to fly between U.S. cities and little change to the Fly America program, a U.S. federal law long loathed by Europeans that permits flyers traveling on federal government business to use only U.S carriers unless no U.S. carrier serves the required route.

Few details of the deal have been publicly released; the Delegation of the European Commission to the United States on Friday released a statement that said the agreement includes "rights in the area of ownership, investment and control of U.S. airlines by EU investors" and "a number of access rights for Community airlines to the U.S. 'Fly America' program for the transport of passengers."

"We have an opportunity to unlock major benefits on both sides of the Atlantic," said Jacques Barrot, vice president of the Commission in charge for Transport, in the statement. "In economic terms, this unprecedented agreement would represent a step change—it could be worth up to €12 billion in economic benefits and up to 80,000 new jobs. The decision of the next Transport Council will be crucial. The open aviation area could be a centerpiece for a reinvigorated transatlantic relationship."

Barrot said he would submit the proposed agreement to the Transport Council on March 22, the date of its next meeting.

Other reactions largely were supportive. "Airlines are businesses. Like any business, the ability to respond flexibly to consumer demand is critical to success," said International Air Transport Association director general and CEO Giovanni Bisignani on Friday. "Today's agreement is a good start but both sides must think bigger and lead the way."

U.S. Transportation Secretary Mary Peters added: "The U.S. and the EU have come together today to open our skies and expand the freedom of air travel between the world's two largest aviation markets. Our agreement will offer more choice and convenience to American consumers, promote new growth in our aviation industry and support our continued economic expansion."