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DESCRIPTION OF THE AGREEMENT


  • Only a combined four airlines from the US and UK are allowed to operate transatlantic flights from Heathrow , split evenly with 2 per country. The two British carriers are currently British Airways and Virgin Atlantic . The American carriers are American Airlines and United Airlines (rights purchased from TWA and Pan Am respectively). Airlines not based in the US or UK are not subject to the same restrictions, and accordingly airlines such as Air India, Air New Zealand, and Kuwait Airways take advantage of this loophole and currently fly from Heathrow to the United States.

  • American and British regulatory authorities must approve airline's pricing.

  • Each country has the right to refuse to permit operations of a carrier it is not satisfied with (particularly with regard to ownership or control).

  • Restrictive list of U.S. cities U.S. carriers can serve from London airports.

  • Restrictive list of U.S. cities UK carriers can serve from London airports.

  • The above referenced cities are: Baltimore , Boston , Chicago-ORD , Denver , Detroit , Los Angeles , Miami , New York-JFK , Newark-EWR , Phoenix , San Francisco , Seattle , and Washington-Dulles .

  • Further, of the cities that apply, only some of these may be served from Heathrow. (i.e not Gatwick)

  • As all routes are currently taken, for a carrier to start a new service to a new U.S. city from London they must drop another route.



FUTURE

Liberalisation of the Bermuda II agreement is the declared intention of both countries, however negotiations have been unsuccessful. The main problem seems to be that while the UK sees liberalisation as total freedom for all carriers to operate to whichever cities they want; the U.S. model is Open Skies. Open Skies is restrictive in itself, barring UK carriers from operating within the U.S. domestic market.