1970s The British government added a privately owned carrier, British Caledonian, to the transatlantic market in 1973, with flights from London's Gatwick Airport to New York and Los Angeles. BCal was forced to exit the market in 1976 after the British government determined that competition was not improving Britain's overall market share. Termination In 1976, the British government announced its intention to renounce the agreement, beginning the negotiation of the Bermuda II Agreement which became effective in 1978. Although the UK initially sought an equal division of capacity between UK and US carriers, the final Bermuda II agreement largely preserved the liberal capacity provisions of Bermuda I. The Bermuda agreements were replaced in two stages on 30 March 2008, and 24 June 2010, by the EU–US Open Skies Agreement between the European Union (representing 25 European countries) and the United States, providing for an Open Skies regime even more liberal than Bermuda I. Effect on other aviation agreements Both the United States and the United Kingdom made the Bermuda Agreement their model for bilateral agreements with other countries until Bermuda II. The only major exception during this era was the 1966 agreement between the United States and the Soviet Union, which designated Pan Am and Aeroflot as the operating carriers from each country and left commercial details of service to the airlines' prior agreement. Although most other agreements during this era followed the Bermuda I model, they tended to include fewer and fewer fifth and sixth freedom rights (traffic rights to and from third countries) as time went on, as the increased range of aircraft made such rights less necessary. The general principles of the Bermuda Agreement were also followed by other countries, such as Canada in its various bilateral agreements. References Aviation agreements 1946 in aviation 1946 in the United Kingdom 1946 in the United States History of Heathrow Airport Treaties concluded in 1946 United Kingdom–United States treaties