New Zealand and Britain sign open-skies deal

New Zealand and Britain have signed a landmark open-skies deal, allowing New Zealand’s airlines to operate unlimited flights into and out of the UK.

New Zealand transport minister Pete Hodgson, who signed the agreement with British High Commissioner Richard Fell, said the timing was “great news” for the tourism industry and for Air New Zealand.

Tourism is one of New Zealand’s biggest industries – pumping about £6.5bn (€9.4bn) into the economy each year.

The deal, first announced in May, removes almost all restrictions on air services between the two countries.

“This agreement is the most liberal signed to date by the UK,” Hodgson said.

While it allows Air New Zealand to increase flights beyond its present once-daily service, any increase in flights will depend on access to landing and take-off slots at London’s Heathrow Airport.

The carrier said it was working through the process of securing suitable slots at Heathrow, Britain’s busiest international airport, which could take at least a year.

Fell said in a statement that the agreement was good for travellers and airlines in both countries.

A memorandum to the agreement says Britain reserves the right to limit the number of passengers the New Zealand carrier can fly between London’s two main international airports and the US.

This is because of restrictions on British airlines flying these routes under a deal with the US government.