A diplomatic row was averted on 22 March when the Council of transport ministers unanimously backed the 'open skies' agreement that had been crafted weeks before by Transport Commissioner Jacques Barrot.
Britain – which accounts for 40% of transatlantic air traffic – had previously opposed the deal, as it forces the country to open up the lucrative route between London's Heathrow Airport and the US to airlines other than the four currently permitted to serve the route (BA, Virgin, American Airlines and United).
Nevertheless, it agreed to the accord, after winning backing from the 26 other ministers for a delay in its application.
The delay – until 30 March 2008 – will give Heathrow airport time to finish building its new terminal, thereby increasing its capacity to welcome new companies.
It should also give some relief to British Airways, which currently gets 60% of its revenues from operating the transatlantic route and is incensed about having to give up its part-monopoly in exchange for only limited opportunities to operate and invest in the US.
The agreement contains a “suspension clause” that commits the US to taking further steps towards opening up its domestic market and loosening its rules on foreign investment and ownership by mid-2010.



