The Canada and UK governments have signed a new Open Skies-type air transport agreement to continue transatlantic flights between the nations after Brexit.

Under the agreement, Canadian and British airlines will be able to continue their existing operations between the countries, as well as provide full flexibility on selected routes, including via third countries, service regularity and pricing.

The deal also covers unrestricted rights for all-cargo services and codeshare services offered by the airlines.

Part of Canada’s Blue Sky policy, the deal is expected to come into effect once the UK is no longer covered by the Canada-European Union Comprehensive Air Transport Agreement.

The Blue Sky policy is designed to promote long-term, sustainable competition and development of global air services.

“The UK is one of our largest air travel markets, as well as a key trading partner and valued ally.”

Canada Transport Minister Marc Garneau said: “The UK is one of our largest air travel markets, as well as a key trading partner and valued ally.

“This agreement is an expression of our robust longstanding air transport relationship, and it will continue to support tourism, trade and investment between Canada and the UK.”

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The UK is currently estimated to be Canada’s third largest two-way air transport market.

UK Transport Secretary Chris Grayling said: “This new aviation arrangement between the UK and Canada will further strengthen the strong economic and cultural bonds shared between our countries.

“International cooperation is essential to a thriving economy and this latest arrangement continues to build momentum for the UK as we leave the EU and take a more prominent position on the world stage.”

Last month, the UK Government signed a new ‘open skies’ air services arrangement with the US, ensuring passenger journeys and advancing a trade relationship worth £50bn between the countries.