Following British denunciation of the Bermuda I Agreement in 1976, a replacement was negotiated and approved on July 23, 1977, to govern air services between the U.S. and the U.K. Referred to as “Bermuda II,” this bilateral agreement was subsequently amended in April 1978, December 1980 and November 1982. The revised and amended agreement covers scheduled and charter air transportation. Its principles differ from Bermuda I in three primary respects: First, while the authority for multiple designation still is included, this right is limited for specific passenger and combination routes over the North Atlantic. Secondly, capacity principles are similar to Bermuda I, except for additional consultative procedures to deal with excess passenger or combination capacity on North Atlantic routes. (The Annex on Capacity was rewritten in 1986.) Thirdly, all U.S.-U.K. North Atlantic cargo operations – scheduled and charter – are covered by an Annex which phased out governmental regulation in 1983 (i.e., full deregulation of cargo).
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