BRITISH MINISTER STRESSES U.K./U.S. DIFFERENCES ON “OPEN SKIES”

BRITISH MINISTER STRESSES U.K./U.S. DIFFERENCES ON “OPEN SKIES”

BRITISH MINISTER STRESSES U.K./U.S. DIFFERENCES ON “OPEN SKIES”

   Lord MacDonald, the British transport minister, said that the U.K. and the U.S. continue to have “serious differences of views” on air transport liberalization.
   MacDonald said that previous negotiations on cargo liberalization between the two countries were tough, but talks will resume in London later this month.
   He said that the open skies model proposed by the U.S. would not result in complete liberalization and healthy competition.
   Under the open skies model proposed by the U.S., U.S. airlines would have access to the British and European Union domestic markets, but would still retain anti-competitive advantages, MacDonald said.
   “Our carriers would be kept firmly locked out of the Americans’ domestic market by their denial to U.K. airlines of the right to carry passengers between points within the U.S.; … by their protectionist ‘Fly America’ policy; …by the U.S.’s refusal to countenance the so-called ‘wet-leasing’ of British aircraft with their crews within their territory; and finally, by corporate control through strict U.S. limits on inward investment by U.K. companies.”
   The British Cargo Airline Alliance, a lobbying group of British airlines, said that it welcomed the statement made by the British minister.