Bermuda II
From Wikipedia, the free encyclopedia
Bermuda II is a Bilateral Air Transport Agreement between the governments of the United Kingdom and the United States signed on July 23, 1977 as a renegotiation of the 1946 Bermuda Agreement, which restricts air service from London Airports to the United States. Bermuda II has been revised several times since its signing. As a highly restrictive agreement it contrasts with the principle of open skies.
[edit] Description of the Agreement
- Only a combined four airlines from the US and UK are allowed to operate flights from the United States to 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). Air India and Kuwait Airways are allowed fifth freedom rights from Heathrow to JFK under a grandfather clause, because both carriers have flown that route for decades.
- 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 Heathrow.
- Restrictive list of U.S. cities UK carriers can serve from London Heathrow.
- The above referenced cities are: Baltimore, Boston, Chicago-ORD, Denver, Detroit, Los Angeles, Miami, New York-JFK, Newark-EWR, Philadelphia, 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.
[edit] 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.
