Virgin Atlantic expects the open skies agreement to result in increased competition in the transatlantic aviation market, according to a spokesperson for the airline.

The open skies agreement - which was signed on April 30th 2007 - came into effect on March 30th 2008 and allows airlines to fly between any city in Europe and any city in the US non-stop.

Virgin Atlantic's spokesperson said: "The transatlantic market is already one of the most competitive aviation markets in the world and more competition will open up now phase one of the new open skies agreement has come into effect."

However, the spokesperson also fired a warning to other airlines considering flying to Heathrow Airport from the USA for the first time.

She said that new entrants to the US to UK market will discover that existing Heathrow carriers are "more than ready to do battle".

An article this week in the International Herald Tribune suggested that the increased competition resulting from the open skies agreement may not necessarily lead to lower fares for passengers, in part due to the rising cost of fuel.

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