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3/25/08

NYT: Trans-Atlantic Flights - Getting to Europe Is About to Get Easier and cheaper with some base fares of 10 euro's one way - by Michelle Higgens

The Airbus A380, ideally suited to become the "people mover" between Europe and the US for fares as low as euro 10 one way with the new Open Sky Agreement.


For the complete report from the New York Times click on this link

Trans-Atlantic Flights - Getting to Europe Is About to Get Easier and cheaper with some base fares of 10 euro's one way - by Michelle Higgens

On March 30, the so-called open-skies agreement goes into effect, allowing airlines based in the United States and Europe to fly across the Atlantic between any two airports in each region. Before the pact, trans-Atlantic flights were governed by separate agreements between the United States and individual European nations. The pacts required airlines to take off or land in their native countries, and limited which airlines could serve certain airports.When the open-skies agreement kicks in next week, those restrictions will be lifted, essentially letting the open market dictate all trans-Atlantic routes between the United States and Europe. For instance, Continental, Delta and Northwest will be able to serve Heathrow for the first time. This year, San Francisco, Orlando and Washington all received their first scheduled nonstop flights to Dublin on Aer Lingus under a related transitionary arrangement. And Michael O’Leary, chief executive of Ryanair, the Irish no-frills carrier, has said he plans to start a new airline that will fly from secondary European markets like Liverpool or Birmingham to a half-dozen American cities like Baltimore or Providence, R.I., for a base fare as low as 10 euros, or about $16 at $1.59 to the euro.

The new pact is expected to be game-changing for Europe-bound travel. More routes are expected to open, and prices could fall thanks to the new competition. The agreement is also likely to encourage European carriers to compete more aggressively with one another across the Continent. Lufthansa, the German airline, for example, could set up a hub in Paris; or Air France could set up a hub in Frankfurt.

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