Bermuda Agreement Of 1946

The Bermuda Agreement of 1946 is a bilateral air transport agreement between the United States and the United Kingdom, which established a precedent for the negotiation of 3000 other such agreements worldwide. The agreement, signed on February 11, 1946, in Bermuda, was the world's first bilateral air services agreement. It was designed to regulate commercial air travel between the two countries, and it established the principles of the 'Fifth Freedom Rights', which allow an airline to carry revenue traffic between foreign countries as a part of services connecting the airline's own country. The agreement also introduced the concept of 'capacity regulation', where the air services of the two countries were to be developed in a balanced manner, avoiding harm to the airlines of the other country. The Bermuda Agreement was replaced by the Bermuda II Agreement in 1977, which was subsequently replaced by the EU–US Open Skies Agreement in 2008.