News: British Airways calls for more liberalisation
Flights > News > # 425 (26/04/2005)
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Fresh talks between the EU and the USA on the possible liberalisation of transatlantic flights could lead to fundamental reform of the industry, according to the chairman of British Airways. Speaking a few days after European transport ministers told the EU Commission to resume negotiations on a new transatlantic air treaty, Martin Broughton said airlines needed to escape the "regulatory wonderland" created for the industry 60 years ago.
Borrowing from the author Lewis Carroll, Mr Broughton described the Chicago Convention of 1944, which regulates the global aviation industry, as the Mad Hatter’s Tea Party.
In a speech to the Royal Aeronautical Society in London, Mr Broughton claimed that:
"Contrary to many people’s expectations, British Airways would welcome a true open aviation area. We are not protectionist, adding that such a pact between the EU and America would lead to "profound reform and restructure of the industry."
Mr Broughton went on to say:
"Aviation is prevented by international regulation from conventional commercial development; competition remains distorted by various forms of government intervention to support lame ducks which would otherwise have sunk; and large parts of the operational infrastructure are inadequate to meet consumer demand. Much of the industry’s problems stem from the way in which it is structured and regulated by international agreement laid down more than 60 years ago. It forbids normal business development through its airline ownership rules; and governments still control access to many important markets around the world."
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