United Air, bmi seek transatlantic operations link

CHICAGO, April 4 (Reuters) - United Airlines, a unit of UAL Corp. (UAUA.O), and British airline bmi [BMID.UL] have applied to the U.S. Transportation Department to combine their transatlantic operations.

The two carriers, in a motion filed Monday, said they had no overlapping nonstop service. The link-up would benefit consumers without reducing competition, they said.

The United/bmi motion would take advantage of the "open skies" deal, which would open aviation markets between the United States and the European Union. The deal would take effect in March 2008.

EU transport ministers unanimously backed the "open skies" proposal last month. Bmi and United are already members of the Star Alliance, but the new plan would forge an even closer relationship.

((Reporting by Kyle Peterson, editing by Gerald E. McCormick; Reuters Messaging: kyle.peterson.reuters.com@reuters.net; e-mail: kyle.peterson@reuters.com; Tel: +1-312-408-8581)) Keywords: BMI UNITED/

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