U.S. Offers U.K. Worse ‘Open Skies’ Deal After Brexit

  • Airlines in U.S. remain optimistic a deal to be reached soon
  • Talks underway on treaty to ensure U.S.-U.K. flight routes
A British Airways aircraft, operated by British Airways Plc, prepares to take-off from the end of the north runway at London Heathrow Airport, in this aerial photograph taken over London, U.K., on Tuesday, June 16, 2015. Europe's largest hub at London Heathrow, which has been operating close to capacity since the start of the decade, and rival Gatwick have been short-listed for a new runway by the state-appointed Davies Commission, with a final recommendation due in coming weeks.Photographer: Matthew Lloyd
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The U.S. has offered the U.K. a more limited “Open Skies” aviation deal after Brexit than it has as a member of the European Union, but participants expressed confidence that the lucrative transatlantic market would continue unimpeded.

The main stumbling block in the negotiations is that the U.S. is using its standard template for aviation agreements, which has less generous terms than its deal with the EU, according to people familiar with the matter, who asked not to be named discussing private talks. Those terms could affect transatlantic flights operated by companies such as British Airways and Virgin Atlantic.