Travel Agent - August 13, 2007 - (Page 18)

COVER STORY Open Skies Air travel agreement has opened up a wealth of opportunities for U.S. and European carriers BY JENNIFER MERRITT jmerritt@questex.com B 18 ack in March, transportation officials at the European Union unanimously approved the “Open Skies” agreement, which will liberalize transatlantic air travel, allowing for greater competition between U.S. and European carriers. What’s more, many experts believe the agreement may revolutionize the industry, prompting consolidation among European airlines, reducing transatlantic fares, introducing more routes and frequencies and establishing more antitrust immunity among airline alliances. Come March 2008, when the Open Skies agreement between the United States and Europe goes into full effect, the landscape of who flies where will drastically change. Until then, routes, timetables and—perhaps most important—slots at London’s Heathrow Airport are up for grabs, with some airlines aggressively pursuing certain routes, while TravelAgent others are playing it a little more coyly. Some of the more exciting points of the treaty allow for carriers to explore previously unchartered territory, in turn beefing up competition and travelers’ options. For one, the agreement states that European airlines can operate flights to the U.S. from any country in Europe, which means a carrier like British Airways can now fly from Paris to New York, competing with the likes of Air France and even all business-class carriers like L’Avion. In fact, British Airways announced in May that it has set up a project team to review plans to operate direct services between the U.S. and what it has deemed key EU business cities. “We are looking at various destinations in Europe such as Paris, Amsterdam, Frankfurt, Brussels and Milan,” said Lisa Lam, a spokesperson with the airline. “In the U.S., New York would be an obvious destination. The service would provide a premium product targeted at the business market. Similarly, experts note that larger carriers may also enter markets until now dominated by smaller European airlines, meaning an airline like Lufthansa could march into TAP Portugal’s territory in southern Europe—a move the carrier is currently rumored to be contemplating through the possible acquisition of Spanish airline Spanair. Pursuing Heathrow Flights Meanwhile, U.S. airlines were quick to jump on the opportunity to fly in and out of Heathrow, a major gateway city to European cities both large and small, as the agreement calls for such airlines as British Airways and American Airlines to loosen their grips on their protected positions at the airport. Carrier campaigns for U.S.-Heathrow routes already have begun. Currently, American is taking advantage of its prime real estate at Heathrow, moving two of its existing flights between London’s Gatwick Airport and Dallas/Fort Worth and Raleigh/Durham to Heathrow next March. “Technically, we could already fly to Stansted pre-Open Skies— August 13, 2007

Table of Contents Feed for the Digital Edition of Travel Agent - August 13, 2007

Contents Editor's Letter News You Can Use Agenda: Fam Trips, Calendar of Events, Deal of the Week Cover Story: Open Skies PACIFIC ASIA: New Zealand Tourism Update CARIBBEAN AND BAHAMAS: One&Only Ocean Club’s Slow Season Package MIDDLE EAST: Middle Eastern Airlines ALASKA: Cross-country Skiers Flock to Fairbanks CRUISES: Azamara Assails The Sea HONEYMOON AND ROMANCE: Honeymoon Survey Results Agent Profile Luxury Travel Expo Update Classified Marketplace Advertisers’ Information People & Places

Travel Agent - August 13, 2007

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