WASHINGTON, Oct. 14, 2009 (GLOBE NEWSWIRE) -- A plea to US authorities to strengthen competition on transatlantic flights was made in Washington D.C. today by Willie Walsh, British Airways' chief executive.
In a speech to the International Aviation Club, Mr. Walsh called for parity among transatlantic global alliances by granting the oneworld alliance the anti-trust immunity that its rival alliances, Star and Skyteam, already enjoy.
Mr. Walsh said, "If approved, this agreement will bring substantial benefits to US-EU customers by offering an expanded route network, improved schedules and connectivity, greater access to discounted fares, fully reciprocal frequent flyer programs and integrated corporate deals.
"Above all, it will provide customers with choice. The Star and Skyteam alliances already operate across the Atlantic with the benefit of anti-trust immunity. But surely a market of 800 million potential consumers deserves a choice of more than two network providers. If Star and Skyteam remain the only immunized alliances across the Atlantic, we could end up with an untouchable duopoly. I do not believe that customers would want that."
Mr. Walsh dismissed claims that access for new competitors to London Heathrow was restricted. He pointed out that the US-EU Open Skies agreement, which came into effect last year, enables any US or EU airline to fly from Heathrow to America.
He said, "Some people had argued that it would be impossible for competitors to gain access to Heathrow. They were wrong. The first phase of the US-EU Open Skies deal made Heathrow an open airport. As soon as it came into effect, the number of operators flying between Heathrow and the US more than doubled.
"Slots at Heathrow are available -- just ask the Star alliance. Star already possesses more than a quarter of Heathrow slots, far more than any other alliance at a competitor's European hub.
"Yes, Heathrow is busy. But that is a consequence of the fact that it is the most competitive hub in the EU, with more airlines and more flights on transatlantic routes than any other airport."
The US Department of Transportation is expected to rule on the oneworld anti-trust immunity application by the end of October. DOT approval would enable British Airways and its oneworld partners American Airlines and Iberia to operate a transatlantic joint business, subject to European Union approval.