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Daily Mail: Air travellers will enjoy lower fares and greater choice of airlines flying the Atlantic because of a controversial 'Open Skies' deal between the EU and the US, it has been claimed
The landmark pact will open up Heathrow airport to European and US airlines wanting to fly the lucrative transatlantic route.
But critics said Britain and its EU partners had caved in to US pressure for a one-sided deal favouring America, because US airlines will enjoy far greater freedom in Europe than European airlines will in the US.
And Green campaigners accused Brussels of hypocrisy, saying it had pushed for a deal which will increase pollution through increased air travel at a time the EU was claiming to champion the fight against global warming.
British Airways will be the big loser as its 'stranglehold' on Heathrow is loosened and rival UK, European, American and even low cost airlines - such as Ryanair - are allowed to fly the Atlantic from the airport.
At present, under a long-standing deal between London and Washington, only two British and two US airlines (BA, Virgin, American Airlines and United Airlines) can fly the route. About 40 percent of all transatlantic flights from Europe leave from Heathrow.
But supporters - including passenger groups and other airlines - claimed it as a victory for consumers, cheaper air travel and choice.
Virgin Atlantic, the other favoured British airline at Heathrow, immediately announced expansion plans to fly to the US from the Continent, while bmi (formerly British Midland) said it would shortly announce details of its first US services from Heathrow.
The new accord came after the UK Government - out-gunned 26 to 1 by its EU partners - dropped earlier objections and signed up to the 'Open Skies' package with Washington.
The UK alone had opposed the plan on the grounds that it was not good for Heathrow, British Airways or Virgin Atlantic.
The agreement allows European airlines to run transatlantic flights to any American city from any EU country, not just their home country. In return, American carriers will have free access to European airports.
But critically, while US airlines can land at any European city, pick up more passengers, and fly on to any other European city, this privilege is not reciprocal.
European airlines may fly to any American city but are forbidden by a law dating back to the 1930s from continuing on to a second city.
The deal also means American companies could buy European airlines, while foreign investors are barred from owning more than 25 per cent of an American airline.
Transport Secretary Douglas Alexander dropped a possible UK veto after winning agreement that the EU will scrap the deal within two years unless Washington agrees to allow EU airlines to fly between US states and to allow greater foreign investment in US carriers.
He also won a delay in the start date of any accord from this October to March next year - by which time Heathrow's new state-of-the-art Terminal 5 should be operational.
Mr Alexander said: "This agreement will bring new opportunities for UK airlines and new benefits for UK passengers."
"The end of the restrictions on the number of carriers at Heathrow will allow new competition on UK-US routes, unlocking significant consumer benefits.
"It delivers real benefits for UK consumers of up to £250million a year."
But Shadow aviation minister Julian Brazier said: "Everybody is in favour of a genuine open skies agreement but that is not what this deal is.
"Britain will lose valuable slots at Heathrow, while America will continue to refuse access to non-American airlines on their gigantic domestic market. As UK airlines have pointed out, the value of the American concessions is minimal while we will lose a great deal."
The UK's Air Transport Users Council said passengers should not expect to see an immediate dramatic dip in the price of fares, while Holiday Which? magazine said it welcomed any move that would cut ticket prices and increase consumer choice.
Industry insiders say that the key to the widely varying reactions to the deal, was the blatant 'self-interest' driving each of the parties.
America is inherently protectionist - but wants greater access to Europe. The Continental Europeans are more interested in getting access to lucrative Heathrow than going on to flying internally around America. The Germans have presidency of the EU and were desperate to cut a deal for political prestige.
British Airways wanted to preserve their special status at Heathrow, and was angry that it would not be allowed to buy a controlling stake in American airlines.
BA chief executive Willie Walsh said the EU faith in American promises was 'naive' adding: "With the EU having given away their most valuable negotiating asset - Heathrow - the UK Government must stand by its pledge to withdraw traffic rights if the US does not deliver further liberalisation by 2010."
He demanded real parity with free access to American markets "where it will be possible for a US airline to be 100% owned by investors from the EU and vice versa".
Mr Walsh said: "So far the US has made no meaningful concessions. American carriers can now fly into 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 Government to its word to fight for Britain's interests if America doesn't play ball."
Environmentalists called the deal a move backward in efforts to fight global warming, pointing out the EU had only recently proclaimed it was leading the way in finding ways to combat climate change.
The European Federation for Transport and Environment (EFTE) said the deal would inevitable mean more flights could completely negate other efforts to curb climate change and cut the amount of carbon dioxide released by aviation in coming years.
More flights mean more carbon dioxide released into the atmosphere - an extra 3.5 million metric tons based on the EU's forecast of increased traffic, according to EFTE.
Aviation currently contributes around 3 percent of the EU's overall greenhouse gas emissions but it is growing fast. Emissions from the EU's international flights will increase 150 percent from 1990 levels by 2012, cutting into the EU's other efforts to curb climate change.
He stressed that any new carrier wanting to fly from Heathrow to America would have to apply to aviation authorities for take-off and landing slots at Heathrow: "We will not be giving up any of our slots."
Heathrow is a lucrative prize coveted by all airlines because - as a leading business, financial and tourist destination - it handles 40 per cent of the EU-US air traffic and is a stop-over hub for many more destinations in Europe and beyond.
European companies such as Air France and Lufthansa, as well as low-cost airlines such as Ryanair and easyJet, will now be able to bid for the Heathrow route.
Virgin Atlantic, which initially opposed the deal, yesterday sought to make the best of it by announcing expansion into Europe with new Continental bases - with flights to New York from cities like Paris, Frankfurt, Amsterdam, and Madrid - creating up to 500 new jobs in two years time.
Simon Evans, chief executive of the Air Transport Users Council, said the deal was 'good news in the long term' for air passengers and the airline industry, but warned: "I don't think we're going to see a tremendous drop in the price of transatlantic air tickets. At times, you can already get to New York and back for as little as £200."
Nigel Turner, chief executive officer of bmi, which operates some services - but not to the US - from Heathrow, said: "The stranglehold has finally been broken.
"Millions of travellers will benefit from additional competition, including lower fares and a greater choice of services." He said it was "a victory for the travelling public".
What it means for you:
• Cheaper transatlantic tourist flights. At present, an average economy return to New York is around £300 •Cheaper peak and business flights • More choice of airlines from Heathrow - not just BA, Virgin, American and United • Expansion. Officials say there could be 26 million more airline passengers over five years • Up to 80,000 new aviation jobs in the EU and U.S. • Overcrowding. There are only so many planes you can pack into Heathrow which is already 98% full | 
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