The UK heads towards Brexit next month, the government has signed a new Air Services Agreement with the US. The bilateral agreement will safeguard flights between the US and UK once the current EU agreement (which the UK is part of) expires at the end of this year. Routes between the two countries are some of the most popular globally, bringing billions in revenue each year.

New agreement

Britain is all set to completely exit from the European Union by the end of 2020, with an extension to the current transition period unlikely. Currently, the UK is covered by EU-wide bilateral agreements with countries such as the US. The new agreement, signed by UK Transport Secretary Grant Shapps and US Secretary of State Mike Pompeo, will replace the existing EU one.

The agreement will ensure the continuation of travel between the countries beyond 31st December and lay out new rules for airlines. This agreement is one of many the UK is signing in the coming months as it plans the future of the aviation industry.

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Heathrow American Airlines
The UK will exit the current EU aviation framework at the end of the year. Photo: Heathrow Airport

In a statement, Transport Secretary Grant Shapps said,

“The Air Services Agreement will allow us to continue to travel and trade with one of our closest friends and allies, working together to mutually boost our economies either side of the Atlantic. This is just one of many steps we’re taking as we move towards a bright new future at the end of the transition period.”

Important routes

New York JFK to London Heathrow is widely known as the highest revenue route in the world. British Airways famously made over $1bn in revenue on the route in one year, with others making substantial figures too.

In addition to this one, airlines operate dozens of routes between major cities in the US and UK. With so much business and leisure traffic between the countries, preserving routes is essential.

Heathrow Airport, British Airways A380
The airport has seen "pent-up demand" from airlines wishing to fly out of the airport during the pandemic. Photo: Heathrow Airport

The UK government also notes that air travel is vital to the $300bn (£230bn) trading relationship between the US and UK. Seeing the business traffic on both sides of the Atlantic, some have even proposed a New York-London air bubble during the pandemic. While the bubble is not official yet, it could well become so in the coming months.

Will the agreement change anything?

While the new agreement does look exciting, there seems to be little change in the way airlines will operate in the future. One potential piece of good news could be a reduction in high surcharges and taxes, such as the British Air Passenger Duty (APD), once Brexit is complete.

This would be a huge boon to passengers and airlines alike, at a time when the latter are struggling due to the pandemic. However, no official announcement has been made about the same yet.

United Airlines Boeing 767-300ER
United Airlines is officially coming back to New York-JFK. Photo: Vincenzo Pace | JFKJets.com

For now, airlines can relax in knowing that there will be no disruptions in flights to the US once the UK exits the EU on January 1st. However, any more exciting developments are yet to come about.