The tentative decision to open Heathrow Airport to service by more U.S. air carriers is a welcome and important step that benefits transatlantic customers by providing more competition to the most important airport in the U.S./Europe market.
We commend the Department of Transportation for issuing the order, which recognizes that divestiture is required to ensure competition and commercially viable access to Heathrow. The order would achieve Deltas long-standing objective of providing our customers direct access to Heathrow. We look forward to serving Heathrow from New York (JFK), Boston, Atlanta and Cincinnati as soon as we are able to obtain the necessary slots and facilities.
Delta has just learned that British Airways and American Airlines feel the regulatory price of this decision is too high. While we respect their view, we believe the level of slots allocated to new entrants in the tentative order provides the minimum required for vibrant competition.
Throughout these discussions, Delta has staunchly indicated its support of alliances as long as the competitive balance in the marketplace is maintained. We believe the DOT decision will allow AA/BA and United/bmi to achieve their objective of creating more competition in the alliance arena. We welcome this competition.
Beyond opening slots for new entrants, the order also recognizes that attractive operating times and adequate facilities are required if Delta and other new entrants are to achieve meaningful access to Heathrow. If the order proceeds, Delta will work through the normal slot allocation process to ensure the slots it receives from the AA/BA divestiture enable us to introduce commercially viable flights for the winter 2002/2003 season. We welcome the fact that the DOT will exercise regulatory oversight in this process.
We strongly urge the U.S. and U.K. governments to reach an open skies agreement as soon as possible. The conclusion of this accord is one of the final obstacles to creating a more competitive and consumer-friendly U.S.-U.K. aviation marketplace.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
