A deal is “close” as negotiators have reached consensus on the biggest issues
According to the Sunday Telegraph, UK and US representatives are close to settling a new deal as they have reportedly reached a consensus on the biggest issues up for debate to settle the post-Brexit air transport conditions.
“UK and US negotiators have agreed that major transatlantic airlines must be covered despite them being foreign owned – a break with the normal rules,” the newspaper said.
“That means flights from Virgin, Norwegian Air and British Airways owner IAG – all majority-owned outside of the UK and US – will continue after Brexit.”
The deal has helped to increase transatlantic traffic by 18 per cent between 2006 and 2016.
With Brexit approaching, a situation developed where US negotiators offered the British government only a basic bilateral agreement, similar to any agreements the country does with other states outside the EU.
Unlike the open skies deal, the standard US agreements require airlines to be majority owned and controlled by firms from their home country.
With neither British Airways nor Virgin Atlantic meeting these conditions, their transatlantic operations could be affected if the deal is not settled.
New rounds of negotiations are scheduled to take place next month and government officials, as well as industry representatives, have expressed confidence a deal will be reached.
“We could get a deal right now if we wanted to. We could sign on the dotted line,” a UK cabinet source told the Sunday Telegraph, adding Britain was mainly holding for extra concessions.