On March 22, British Airways has called on the UK government to stand by its right of automatic termination of traffic rights granted in the new air treaty endorsed between the EU and US if America drags its feet on negotiating further liberalisation.

Access to London Heathrow for US airlines is at the heart of the new aviation pact signed by European Union Transport Ministers in Brussels on March 22.

British Airways chief executive Willie Walsh said, "The EU is naive to believe the US will deliver on the next stage of liberalisation without sanctions so we are pleased the UK government has recognised this and demanded an automatic termination clause. However, the five month delay before implementation is unnecessary.

"With the EU having given away their most valuable negotiating asset - London Heathrow - the UK government must stand by its pledge to withdraw traffic rights if the US does not deliver further liberalisation by 2010. Nothing short of an Open Aviation Area by 2010 will be acceptable and we want talks on the second stage to achieve this to start immediately.

"This means delivering a true Open Aviation Area under which airlines from both sides would have free access to each others' market without restrictions and where it will be possible for a US airline to be 100% owned by investors from the EU and vice versa.

"A genuine liberalisation such as this would deliver huge benefits for customers.

"It is disappointing that the EU has missed the opportunity to achieve these long term gains for customers. Instead, this deal will deliver short term gains for the subsidised American aviation industry.

"So far the US has made no meaningful concessions. American carriers can now fly into London Heathrow, Europe and beyond while their own backyard remains a no go area for EU carriers and foreign ownership of their airlines remains unchanged.

"We will hold the UK Government to its word to fight for Britain's interests if America doesn't play ball. Though this is a poor agreement for Britain and Europe, we are ready to exploit the new opportunities this agreement gives us for our customers and our business. Our priority will be to move the Gatwick services to Heathrow that have most connecting traffic, such as the Houston route which serves the oil markets and give our customers the best possible connections."