New Open Skies Agreement Changes Everything – Maybe Even Prices!

This week a new Open Skies Agreement between airlines of the United States and Europe goes into effect. So what, you say….why should I care? Well I believe this will change the entire face of global travel in the coming years.

The new agreement (which was 6 years in the making) allows airlines to fly non-stop between any city in Europe and any city in the United States for the first time. Until now flight routes had to be negotiated individually between governments on a city by city basis – and each country was restricted from originating flights outside their own country. The new rules lift these restrictions and create an open marketplace. So for instance, Air France can now fly from London to New York without having to land in France. Does this mean prices will go down? – too soon to tell – but increased competition among airlines is never a bad thing.

London opened a new larger Terminal 5 at Heathrow Airport this week to sell new gate rights to US airlines. In fact, Continental, Delta and US Airways will all be flying new routes into London Heathrow this summer. European airlines are preparing to take advantage of the new rules as well. Air France will begin flying nonstop flights from Heathrow to Los Angeles, while British Airways is creating a whole new airlines called ‘Open Skies’.

One of the most significant changes is that airlines will be able to fly from their home country to an international city and then on to a third country. So soon you should be able to board a flight at JFK, fly to London, then on to Rome, all on a US airline. (Previously a US airline would not be allowed to fly from England to Italy.) We may even see some of the larger budget airlines go international.

All these changes should mean lots of new flight choices, heightened competition between US and European Airlines, and more promotional airfare sales as new routes are introduced. If you’re hoping to fly to Europe this year, it’s a great time to start a fare tracking search in Kayak or Orbitz, so you’ll be among the first to know about a new sale.