EU-US Open Skies Agreement

The EU–US Open Skies Agreement is an open skies air transport agreement between the European Union and the United States. The agreement allows any airline of the European Union and any airline of the United States to fly between any point in the European Union and any point in the United States. Airlines of the United States are also allowed to fly between points in the European Union. Airlines of the European Union are also allowed to fly between the United States and non-EU countries like Switzerland. The treaty disappointed European airlines as it was tilted in favour of United States airlines: while they are allowed to operate intra-EU flights, European airlines are not permitted to operate intra-US flights nor are they allowed to purchase a controlling stake in a US operator. The Agreement replaced and superseded previous open skies agreements between the US and individual European countries.

The initial agreement was signed in Washington, D.C., on 30 April 2007. The agreement became effective 30 March 2008. Phase two was signed in June 2010.

Under the agreement, London Heathrow Airport was opened to full competition. This ended the exclusive right granted for only two US airlines and two UK airlines (Bermuda II) to fly transatlantic services out of Heathrow. These four airlines were British Airways, Virgin Atlantic Airways, United Airlines, and American Airlines.

This right also exists for third-country carriers with incumbent fifth freedom rights to carry passengers between London Heathrow and the United States. These rights were previously exercised by Air New Zealand (between Los Angeles-London Heathrow), Air India (between New York City-London Heathrow), and Kuwait Airways (also between New York City and London Heathrow). El Al also had such rights but chose not to use them, and Iran Air technically also had similar rights, but is prohibited from flying to the US due to US government economic sanctions against Iran.

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