FlyerTalk Forums - View Single Post - Announcement: UA adds IAD-NRT, drops JFK-LHR/NRT, reumes SFO-TPE, adds more SFO-HKG
Old Jul 28, 2006, 8:56 am
  #43  
DataPlumber
 
Join Date: Oct 2002
Location: Rolling Lakes Yacht Club
Posts: 4,998
Originally Posted by SFO_Runner
And if the anticipated Open Skies agreement between the US and EU gets signed fairly soon:

1) DL has just paid a few million for route authority they would have gotten for free via Open Skies treaty.
2) In the meantime, UA gets cash from DL.
3) If UA feels the need, post Open Skies approval to re-start NYC - LON, they have the right to do so via the treaty - for free.
4) It can be said this is a mis-step by DL if the net profit from flights on this route do not outweigh the purchase cost (well, opportunity cost) by the time a would-be US - EU Open Skies treaty comes into play.

In the meantime, as you say, UA have got an LHR landing and departure slot...

They have been trying to iron out an open skies treaty in one form or another for the US and UK for more than 5 years now. It will be a long time before the issues are ironed out that will open up LHR to other US carriers and grant AA/BA anti-trust immunity.
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