Some regulators seem to be congratulating themselves for the reduction in Air Fares across the Atlantic after the implementation of Open Skies last year.
http://www.ajc.com/business/content/business/delta/stories/2009/03/29/open_skies_delta.html
However I would caution anyone who thinks that the benefits were immediate.
Yes air fares have been reduced across the Atlantic. But so has capacity - that normally should not happen. Capacity was supposed to increase so was choice.
In fact the reverse happened. Delta has reduced traffic and competition on at least 2 key routes - LAX-LHR (AF-DL) and SEA-LHR (NW) came and went bye-bye pretty quickly.
What we have seen is a significant reduction of Transatlantic service from London Gatwick. AA has pulled all of its services from LGW with significant reductions from DL, NW, and CO to mention just a few. Capacity across the Atlantic has been reduced by most airlines and BA is in a world of hurt with its traffic falling quite precipitously in the key premium markets.
Long term - I remain optimistic - but as negotiations for the next round of Open Skies between the EU open up - don't expect big expansive true Open Skies agreements to occur any time soon. And Air fares - well they are down all round. That means there are some significant bargains around. Too bad about the taxes though!
Cheers
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