U.S. and UK attain new post-Brexit deal on air providers

WASHINGTON (Reuters) – The United States and United Kingdom have reached a deal on a brand new open skies aviation settlement to manipulate air travel after Britain exits the European Union, the British government mentioned on Wednesday.

The deal “will guarantee the continuation of the vital transatlantic routes used by tens of millions of passengers a year, ensuring people can continue to travel easily between the UK and US and maintaining choice and good value travel,” it mentioned in a press release.

The largest concern has been over post-Brexit bilateral guidelines that will require airways to have substantial U.S. or British possession. That posed an issue for British airways with vital EU possession.

The settlement will permit them to proceed current operations below the EU-U.S. open skies deal.

In future, nonetheless, airways that change palms will have to fulfill the possession necessities or get U.S. approval, Reuters reported on Tuesday.

British-based carriers together with British Airways, Virgin Atlantic [VA.UL] and Norwegian Air might have been negatively impacted with no deal.

IAG, the Anglo-Spanish airline group that’s the mother or father company of British Airways and Spain’s Iberia, has additionally been working to deal with EU possession points after the European Commission mentioned it might fall under EU possession necessities after Brexit.

Willie Walsh, IAG’s CEO, mentioned in a press release that the “agreement is a significant positive development which we welcome.” He mentioned it “facilitates strong competition and is clearly pro-consumer.”

Airlines for America, a commerce group for main U.S. airways, mentioned the deal “provides the legal framework for the 20 million passengers and more than 900,000 tons of cargo flown between the two countries annually.”

Britain is in superior talks for a bilateral air providers association with Canada and has additionally reached air providers agreements with Albania, Georgia, Iceland, Israel, Kosovo, Montenegro, Morocco and Switzerland.

Reporting by David Shepardson; Editing by Peter Cooney and Rosalba O’Brien

Our Standards:The Thomson Reuters Trust Principles.

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