U.S., France Finalize Open Skies Agreement

U.S. and French authorities today signed a liberalized aviation agreement granting blanket access for commercial services between the two countries. The Open Skies pact, five years in the making and two years ahead of a schedule laid out in a 1998 precursor agreement, not only provides many more flight opportunities for transatlantic travel but also opens the door for antitrust immunity between SkyTeam partners Delta Air Lines and Air France. Anticipating today's agreement, the two carriers and fellow alliance partners Alitalia and CSA Czech Airlines, applied for immunity earlier this year.

"We are hopeful that the U.S. Department of Transportation will now move swiftly to approve the application so passengers can begin to realize the benefits that will come from open skies and antitrust immunity," said Leo Mullin, Delta chairman and CEO.

The French have accomplished with U.S. regulators what the British have not. Although U.S.-U.K. aviation liberalization talks are expected to resume later this month, an Open Skies pact with the United Kingdom has been significantly more contentious, primarily due to restricted access at London Heathrow Airport. Indeed, a renewed push by American Airlines and British Airways to secure their own antitrust immunity, predicated on a new U.S.-U.K. aviation pact, hinges on BA's willingness, or a government mandate, to surrender some number of its slots at Heathrow to other competitors. The existing Bermuda II agreement allows only AA, BA, United Airlines and Virgin Atlantic to operate transatlantic service to and from the key airport.