Airlines Declare Open Season on 'Open Skies'

Continental(CAL Quote) moved quickly Thursday to test whether the open skies across the Atlantic are really going to be open.

A key component of the open skies agreement, approved Thursday by all 27 members of the European Commission, says access to London's Heathrow Airport will increase. So Continental filed with the U.S. Department of Transportation to begin Houston-Heathrow service.

The carrier said it wants to begin Heathrow flights before summer 2008 and to retain its flights to London Gatwick from its hubs in Cleveland, Houston and Newark. "The open skies agreement will allow us to give our customers the convenience of choosing between Heathrow and Gatwick for their London travel plans," said CEO Larry Kellner, in a prepared statement.

Continental said it filed immediately upon learning of the EC vote, which supports an agreement reached March 3 by negotiators for the U.S. and the EU. The EC agreed to delay implementation until March 30, 2008, about five months past the planned date of Oct. 28.

The delay, which requires U.S. approval, provides the British government with extra time before it opens Heathrow to more carriers. A new Heathrow terminal will open in March.

The deal has backing from U.S. airlines, which see various benefits. "This open skies agreement paves the way for much-desired increased service between the United States and Europe," said James May, CEO of the Air Transport Association, in a prepared statement. "It has the potential to provide enormous benefits to our respective customers and economies."