The UK Department for Transport (DfT) has been denying flight-permit applications by U.S. charter firms to operate flights between the UK and other countries, due to a UK policy that allows the DfT to consult with the British Business and General Aviation Association (BBGA), whose members can object to the flight.

The DfT’s policy for extra-bilateral procedures includes seventh-freedom flights, in which a non-EU carrier operates flights between the UK and another country. This does not include travel between the U.S. and the UK, which is covered by the Open Skies agreement. The DfT policy states that any UK carrier can object to a seventh-freedom, flight-permit application if that carrier can operate the flight with a comparable aircraft. The policy also states that the DfT may “consult” with the BBGA to determine if any of its members has suitable alternative capacity and is available from the same airport within two hours of the time requested.

In addition to “consulting” with the BBGA, the DfT submits a copy of the permit application to the BBGA head office in Aylesbury, Buckinghamshire. In many cases, the permit applications include confidential information, such as passenger information, specific flight details and the cost of the flight.

“We recognize that in this office we do get to see sensitive information,” said Guy Lachlan, CEO of BBGA, adding that the confidential data stays within the office and is not sent to its members. “We never forward it; we never show it to anyone else. The operators [the BBGA members] never, ever see it. All we mention is the number of passengers, the destination and the type of aircraft.”

Although Lachlan denies that any of its members actually see the permit application itself, a number of U.S. operators believe the UK government should not be submitting confidential information to a private entity.

“I can understand that they don’t want U.S. operators operating within the EU, just as we wouldn’t want foreign operators operating within our country,” said Mike Lyon, owner of Pittsfield, Mass.-based Lyon Aviation. “I can understand that. But when they’re passing out client information, I have a problem with that–from a security point of view and a competitive point of view.”

The DfT recently denied a permit of Lyon’s, in which he requested permission to pick up a British passenger in the UK, fly to the Caribbean, and then return the passenger to the UK at a later date. According to Lyon, the DfT denied the permit because a member of BBGA objected to the flight. Furthermore, Lyon says the member who objected, a Farnborough-based operator, is also a board member of BBGA. “That’s a major conflict of interest,” Lyon said.

However, Lachlan claims that the objecting board member is not an executive member of the association and does not have access to the permit applications from the DfT. “He can hire and fire me, but he doesn’t have any executive role, none whatsoever,” Lachlan said. “He doesn’t come to this office, ever. In terms of anything that happens on an executive basis, it doesn’t include anyone on the board.”

Legislation and the Economy

Jonathan Ross, director of operations at Ronkonkoma, N.Y.-based North American Air Charter, believes the recent spate of permit denials is a direct result of the TSA’s
12-5 security program, which has made it more difficult for foreign operators to conduct flights in the U.S. The DfT has denied a number of Ross’s permit applications over the past two months. The aircraft listed in the permit applications is owned by a British citizen but registered in the U.S.

“What it comes down to is that British operators can’t operate in the States,” Ross said. “So because they can’t operate, they’re pushing the issue. And the most troublesome thing is that we’re developing a ‘push me, shove you’ attitude with the British.” He added, however, that European operators do have his sympathy. “They’re perhaps justified in their feelings about the TSA, and in all fairness, I think the TSA should back off.”

Lachlan acknowledged that European business jet operators are at a disadvantage. “The TSA introduced onerous procedures that make it much more difficult to operate a foreign business aircraft in America,” he said. “You have to jump through several hoops that take several days to get the necessary permits to operate to and within the U.S. as a foreign carrier.”

The economic downturn could also be a factor. “We’ve seen an increase in American operators, particularly, looking for business in Europe,” Lachlan said. “The fact that we’re in a downturn means that EU operators are much more sensitive to this kind of competition, whereas in the past there was enough work to go around.”

No matter the reasons, Ross believes the policy is causing animosity between the two countries and is costing American operators business. “Operators don’t want to be told ‘no,’ so a lot of people just aren’t applying for permits.”