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Division
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Investment and Export
PO Box 7970
Madison, WI 53707-7970
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Vol.
7 #4, March 2008
Open Skies Accord with Europe
 The
new U.S.-European Union Air Transport Agreement will go into effect on
March 30. The agreement will replace all existing bilateral
agreements between the United States and EU member states and will
establish an Open-Skies Plus framework between the United States and
all 27 EU members. Once implemented, every U.S. carrier will be
able to fly to every city in the 27 European Union member states and
every EU carrier will be able to fly to any city in the United
States. EU airlines have not won the right to operate intra-U.S.
flights.
The Agreement will authorize every U.S. and every EU airline to:
- fly between any city in the 27-member European Union and every city in the United States;
- operate without restriction on the number of flights, aircraft, and routes;
- et fares according to market demand; and
- enter into cooperative arrangements, including codesharing, franchising, and leasing.
Among the destinations most affected will be London’s Heathrow
airport, which under previous agreements allows only four
airlines—British Airways, Virgin Atlantic, American, and
United—to fly between Heathrow and the U.S. Northwest,
Continental, and Delta all plan to establish a presence at Heathrow
under the new liberalization policy.
Detroit will have new Heathrow service from Northwest Airlines starting
this spring, and the airline plans to launch daily Heathrow flights
from Minneapolis-St. Paul and Seattle.
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