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Pact Could Add U.S. Flights Into Heathrow

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From Bloomberg News

U.S. and British negotiators are considering a plan that would allow as many as three additional U.S. airlines to fly to London’s Heathrow Airport in exchange for British Airways and American Airlines winning approval for proposed shared flights, said people familiar with the talks.

Any agreement that lets more airlines fly to Heathrow would be groundbreaking, as Heathrow access has been the major sticking point in aviation disputes between the U.S. and Britain. For BA and AMR Corp.’s American, approval for code-sharing would represent a major leap forward for their alliance, which has been stymied by regulatory problems.

The plan would allow the U.S. carriers as well as British Midland to fly between the U.S. and Heathrow. People familiar with the talks said the two sides had hoped to announce something next week at an airline conference in Chicago, though it will probably be January before anything is worked out.

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“We had a meeting a few weeks ago,” said a spokesman for the British Transport Ministry. “Some ideas were floated, but we haven’t made any formal proposal yet.”

The people also said that Delta Air Lines Inc., Continental Airlines Inc. and US Airways Group Inc., three carriers that have long coveted flying rights into Heathrow, would probably be those chosen for the new access.

British Midland’s getting clearance to use its existing slots at Heathrow to fly to the U.S. would help UAL Corp.’s United Airlines and Deutsche Lufthansa, as British Midland will join their Star Alliance next year. U.S. aviation negotiators say a desire by the British government to secure access to the U.S. for Britain’s No. 3 carrier, British Midland, could provide leverage for a “mini-deal” that would allow at least limited new access to Heathrow for additional U.S. carriers.

Currently among U.S. carriers, only American Airlines and United can take off and land at Heathrow, an important gateway airport for other destinations in Europe.

The U.S. hopes to conclude such a limited agreement the next time the two sides sit down for formal talks--perhaps later this month, State Department special aviation negotiator Tom White said.

The accord must include a provision that would allow a U.S. passenger carrier to fly direct between Pittsburgh and London, White said.

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