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New pact could shake up airlines: Barron's
NEW YORK (Reuters) - A new international aviation pact signed by the United States and the European Union could lead to lower prices for trans-Atlantic air travel and cause a shake-up among airlines, according to a report in Barron's.
The new pact mainly concerns traffic from London's Heathrow Airport to the U.S., which thus far was open to just four airlines, but come March will be open to all other players, said the article in the December 3 edition of the weekly publication.
British Airways <BAY.L>, AMR's <AMR.N> American Airlines, UAL's <UAUA.O> United Airlines and privately held Virgin Atlantic have enjoyed protected rights to this route, but come March could face stiff competition from other airlines, said the report.
Depending on how it plays out, the deregulation of the route could help stocks of U.S. carriers like Delta Air Lines <DAL.N>, Continental Airlines <CAL.N> and US Airways <LCC.N>, said the article.
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(Reporting by Euan Rocha)
