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Wednesday, October 31, 2007

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BA's transatlantic flights grounded

The tail of a British Airways aircraft

Under the "Open Skies" agreement, British Airways was set to establish a direct line from New York's JFK airport to Europe. But the FAA might veto that plan. Stephen Beard reports.

The tail of a British Airways aircraft (Getty Images)

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TEXT OF STORY

Doug Krizner: British Airways was hoping to launch a new airline between Europe and New York's Kennedy airport. But now, there are reports the FAA is threatening to veto that plan. From London, Stephen Beard reports.


Stephen Beard: For British Airways, this was a golden opportunity -- the chance to grab a bigger share of the lucrative transatlantic market. As allowed under the "Open Skies" agreement, BA is planning to fly direct from continental Europe to New York, landing almost certainly at the city's most popular airport, JFK.

But now the U.S. authorities are making it clear they want to cut the chronic congestion at JFK. British Airways might not get all the new landing slots it wants.

That would be a blow for BA's new venture, says analyst Kieran Daley.

Kieran Daley: New York does have other airports, which could at least, in theory, be used. But certainly in the early days, BA I think has to go with the existing flow and take people to where they want to go.

The International Air Transport Association has criticised the US for failing to expand airport capacity.

In London, this is Stephen Beard for Marketplace.

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