Bermuda Agreement

The Bermuda Agreement (1946) was the first major bilateral air services agreement, signed between the United States and United Kingdom. It established the framework for international airline route rights that most subsequent bilateral agreements have followed.

Key principles included:

• Each country designates airlines to operate specific routes
• Airlines set fares subject to government approval (via IATA fare conferences)
• Capacity was not pre-determined (airlines could adjust frequency and aircraft size)
• Fifth freedom rights were partially granted

Bermuda II (1977) was more restrictive. The framework was eventually superseded by Open Skies agreements starting in the 1990s, which removed most capacity and pricing restrictions.