U.S. Rejects U.K. Heathrow Proposal

The United States this week turned down a U.K. offer for a mini deal to expand access by U.S. airlines to London Heathrow Airport.

The U.K. proposal would have allowed new rights for non-incumbent carriers to serve U.S.-Heathrow routes, with a maximum of two additional carriers from each country to be added in the summer of 2003, and the maximum number of additional flights that could be offered would be two per day per country. The United Kingdom also proposed that another two carriers from each country could be added in the summer 2004. However, the maximum number of flights that could be provided in 2004 would be four daily flights by each country. This means if each country elected to add the maximum of four carriers, each airline could offer only one daily flight. If the countries, instead, elected to select fewer carriers, the airlines would divide up the four flights. The mini deal also contained new charter and cargo rights.

The present bilateral agreements restrict transatlantic services between Heathrow and certain U.S. cities to two British and two U.S. carriers-British Airways and Virgin Atlantic Airways and American and United airlines.

The U.S. State Department sent a letter to A.T. Baker, director of international aviation negotiations for the U.K. Department of Transport, stating that the U.K. proposal, which was made Aug. 15, cannot serve as the basis for initiating negotiations. The United States said an Open Skies agreement would provide the "best environment" for both countries. The State Department added that the United States would welcome the opportunity to hold Open Skies talks with the United Kingdom or discuss an all-cargo Open Skies agreement.