New UK-US 'open skies' deal imminent as Brexit looms

The Sunday Telegraph, citing sources in London and Washington, reported on Sunday (May 27) a deal between the UK and the US was “close”.

It is thought the bespoke agreement, unusually, covers transatlantic airlines, despite many not being wholly UK or US-owned.

These include Virgin Atlantic, Norwegian and IAG lines, such as British Airways - all of which are majority-owned outside the UK or US. The agreement would ensure these flights continue after Brexit.

The UK, however, remains at loggerheads with the EU over its membership of, and access to, the European Aviation Safety Agency (EASA).

And speaking at last week’s Abta Travel Law Seminar, a leading travel lawyer warned the UK may find it difficult to come to such an agreement with its nearest neighbours.

The Sunday Telegraph adds a further round of talks would take place next month to hammer out a final deal.

So-called “open skies” agreements, in essence, allow airlines and the market determine flight prices, rather than governments.

The UK is currently signed up to an EU-US open skies agreement, which will lapse following Brexit on March 29 next year, making bilateral agreements such as that with the US vitally important.

Sean Kennedy, senior vice-president of global government affairs at trade association Airlines For America, said he was “confident a deal is within reach”.