Keeping the Skies Friendly : To nail down deal, British should agree to help U.S. carriers abroad

British Airways has made a serious and well-promoted pitch to acquire a substantial interest in a major U.S. carrier. The proposal should be viewed favorably by the U.S. government--if certain conditions are fulfilled.

To clinch the deal, the Brits should be willing to do some good old-fashioned Anglo- Saxon, transatlantic horse trading.

The British must help open up the skies across the Atlantic so that U.S. airlines would have access to and within Britain similar to what British Air would have if it succeeded in acquiring part of the American carrier, USAir. In fact, the U.S. Department of Transportation should insist on such an agreement before allowing British Air to buy a stake in troubled USAir.

British Air has sought to simplify the issue by saying that it is saving U.S. jobs by injecting $750 million into the ailing Pittsburgh-based airline.

That’s a pitch hard to resist in these recessionary times. In truth, however, American jobs may eventually be at risk if the British are not willing to have a policy of more open skies for U.S. carriers. Hard hit by cutthroat domestic competition, the U.S. airlines could use new routes.

The current U.S.-U.K. aviation agreement is one of the most restrictive in the world. Fashioned when U.S. carriers dominated international routes after World War II, the air route accord clearly favors British carriers and is stingy toward U.S. carriers. Left as is, the accord would give British Air an unfair competitive edge if the airline completed the USAir deal.

After all, the British carrier would be able to provide seamless, uninterrupted service from its overseas points of origin to American cities now served by USAir. British Air would thus gain major access to the U.S. market, while U.S. carriers such as American, United and Delta would remain limited in their access to the British and European markets. Reciprocal rights are in order.

The British should oblige. British Air, USAir and other American carriers all would benefit from greater competition. So would travelers on both sides of the Atlantic.