EU approves open skies agreement

The European Union has declared its full support for an agreement with the US to open up transatlantic skies to more carriers.

Transport ministers backed the deal in a meeting at midday today, but had to convey a request from the UK to delay the launch of the agreement until March 2008.

From that date, airlines in the EU will be able to operate US flights from any location within its remit, while mergers are likely to become more commonplace.

It is thought that the deal will allow British air passengers to choose from a wider range of options when booking flights across the Atlantic.

Earlier today, bmi chief executive Nigel Turner told BBC Radio Five Live's Wake Up To Money programme that the agreement will pass on considerable cost savings to UK passengers.

"[It is] estimated that the benefits of open skies will be around £250 million per annum for the passengers, but what will be even better is they will have more choices of airlines like bmi to give competition," he said.

The agreement is set to be formally signed by US and EU officials at a summit on April 30th.

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