More low-cost transatlantic service coming?

With the debut of the new “open skies” agreement between the U.S. and the European Union scheduled for March 2008, there are indications that more European low-cost carriers might be planning to expand or break into the transatlantic market. U.K. carrier bmi said it is acquiring five more twin-aisle Airbus A330s – it already has three – with the first delivery scheduled for next spring. Industry sources say that bmi is widely expected to begin new transatlantic services from London Heathrow when it gets the new planes. Bmi currently flies to Chicago and Las Vegas from Manchester; it recently acquired a regional carrier, British Mediterranean, and is also buying five more A321s for expanded service within Europe. According to industry reports, bmi currently holds 13 percent of the slots at Heathrow. Meanwhile, another low-cost European airline, Air Berlin, has placed an order with Boeing for 25 of the manufacturer’s new long-range 787 Dreamliners. They won’t start to be delivered until 2013, but the order will give Air Berlin the capability to add a number of long-haul routes to its network – presumably including the U.S. Currently, Air Berlin operates 737s and A320s on scores on intra-European routes.