United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office Resources, Community, and Economic Development Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1997-06-04 monographic deposited born digital 20 p. GA 1.13:T-RCED-97-103 https://www.govinfo.gov/app/details/GAOREPORTS-T-RCED-97-103 P0b002ee180396e7d f:rc97103t DGPO 2010-08-12 2011-03-24 GAOREPORTS-T-RCED-97-103 machine generated eng fdlp REPORT GAOREPORTS-T-RCED-97-103 T-RCED-97-103 Airline industry Airports Commercial aviation Competition limitation Foreign governments International agreements International economic relations Restrictive trade practices Air transportation operations Airline regulation Heathrow Airport (United Kingdom) Gatwick Airport (United Kingdom) United Kingdom Testimony RCED GAO discussed U.S. aviation relations with the United Kingdom, focusing on the: (1) current status of airline competition in the U.S.-U.K. market and of negotiations between the United States and the United Kingdom; (2) potential competitive impacts of the proposed alliance between American Airlines and British Airways; and (3) obstacles that might prevent U.S. airlines from having adequate access to Heathrow Airport.<p/>GAO noted that: (1) the current bilateral accord between the United States and the United Kingdom places substantial limits on competition; (2) as a result, consumers in both countries have more limited service options and likely pay higher fares than they would in a more competitive environment; (3) in addition, these limits on competition disproportionately impact U.S. airlines, most of whom are not allowed to serve Heathrow; (4) only two U.S. airlines can currently serve Heathrow, and even those two are only permitted to do so from certain designated cities; (5) by contrast, British Airways has already obtained, in previous negotiations, extensive access to the U.S. market; (6) partly as a result, U.S. airlines' share of the U.S.-U.K. market has steadily declined over the past few years, while British Airways' share has risen; (7) with little leverage with which to deal, the Department of Transportation (DOT) has achieved little success in securing increased access for U.S. airlines to Heathrow; (8) as GAO noted in its March 1996 testimony, progress would likely not occur until the United Kingdom identified something else it wanted from the United States; (9) that moment arrived 1 year ago with the announcement by American Airlines and British Airways of their planned alliance; (10) however, several difficult issues, such as the British government's insistence that an open skies agreement also contain a formal mechanism to resolve disputes, have stalemated negotiations; (11) the potential alliance of American Airlines and British Airways, the two largest carriers in the U.S.-U.K. market, raises significant competition issues; (12) in 1996, the two airlines accounted for 60 percent of the scheduled passenger traffic that flew between the United States and the United Kingdom; (13) in addition, they currently provide over 70 percent, and in some cases all, of the service between Heathrow and several key U.S. gateways, including New York, Chicago, Boston, and Miami; (14) as a result of this level of market concentration, DOT's approval of the alliance would further reduce competition unless, as a condition of the approval, other U.S. airlines are able to simultaneously obtain adequate access to Heathrow; (15) barriers exist at Heathrow in the form of a limited number of takeoff and landing slots and a scarcity of available gates and facilities that prevent U.S. airlines from having adequate access t* https://www.govinfo.gov/content/pkg/GAOREPORTS-T-RCED-97-103/html/GAOREPORTS-T-RCED-97-103.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-T-RCED-97-103/pdf/GAOREPORTS-T-RCED-97-103.pdf GAO/T-RCED-97-103 https://www.govinfo.gov/app/details/GAOREPORTS-T-RCED-97-103 Testimony GAO/T-RCED-97-103; International Aviation: Competition Issues in the U.S.-U.K. Market; Airline industry Airports Commercial aviation Competition limitation Foreign governments International agreements International economic relations Restrictive trade practices Air transportation operations Airline regulation Heathrow Airport (United Kingdom) Gatwick Airport (United Kingdom) United Kingdom