Officials of the U.S. Department of Transportation have long dreamed of an open airline market between the U.S. and Europe.
But efforts by European countries to protect national airlines or airports, such as British Airways and London’s Heathrow International Airport, have thwarted that goal.
As a result, agreements between the U.S. and the United Kingdom, Greece, Ireland and Spain restrict trans-Atlantic travel by limiting the number of flights and the carriers allowed to operate those flights.
Now, an EU-commissioned study could become a catalyst for a change in the rules.
The study by the consulting firm Brattle Group, with offices in Washington, D.C., and London, suggests that opening the aviation market would lead to an increase in trans-Atlantic travel of 4 million to 11 million passengers per year.
Comparing costs: The nation’s major carriers have a long way to go if they are going to successfully compete against the rising crop of discount carriers, such as JetBlue Airways, Southwest Airlines and Airtran Airways.
According to year-end earning reports by United and American, those carriers will have to reduce their costs by as much as 25 percent if they are going to thrive against discount competitors.
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United, the nation’s highest-cost airline, spends 11.33 cents per available seat mile to operate. American, the world’s largest airline, spends slightly less–11 cents per available seat mile. Delta, the nation’s third-largest carrier, spends 10.31 cents per available seat mile.
On the other hand, JetBlue spends 6.43 cents per available seat mile to operate, while Southwest spends 7.41 cents and Airtran spends 8.51 cents.
United, which filed for bankruptcy in December, and American are struggling to cut their costs by at least $4 billion.
Airline awards: As tough a year as 2002 was for United, the Elk Grove Township-based carrier is in line for at least one award, in addition to being named last week as the nation’s best on-time carrier.
The airline is vying with American, Air Canada, Continental and Midwest Express as the best in North America, an award given annually by OAG Worldwide Ltd., the London company known for the Official Airline Guide.
In addition, United is a finalist for awards for the best trans-Atlantic airline, the best international first-class and the best trans-Pacific airline.
American is competing with United for the best of North America prize, and it is also a finalist for airline of the year, best economy-coach class and best airline Web site.
The only other domestic carrier competing for the airline-of-the-year award is Continental. Three other carriers are vying for that award: Air Canada, British Airways and Singapore Airlines.
Qantas set to land: Qantas Airways is to launch its first service to American Airlines’ Chicago hub at the end of March. Qantas will serve O’Hare three times a week from Melbourne, Australia, via Los Angeles. Qantas is a member of the American-led OneWorld Alliance.