The original Bermuda Agreement of 1946 took its name from the island where British and American transport agents met with people to negotiate a new intergovernmental agreement on air services. This agreement, which was very restrictive (compared to modern agreements) at the request of British negotiators who feared that the “pouring” of American demands for a “free for all” would lead to the total supremacy of the then financially superior American airlines over the global airline industry, was the first bilateral agreement on air transport in the world. It has become a model for all subsequent air transport agreements. 4. All collective agreements relating to public transport between the territories of the contracting parties that have been concluded following inter-carfing talks, including those concluded as part of the international air transport association`s transport conference procedures or another association of international airlines, are subject to the agreement of the aviation authorities of those parties. and may be refused at any time, whether they have been previously authorized or not. The presentation of such agreements is not the presentation of a tariff within the meaning of paragraph 5 of this article. These agreements are subject to approval by the authorities of both parties at least 105 days before the proposed effective date, which each contracting party requires from its own designated carriers. The 105-day period can be reduced with the agreement of the aviation authorities of the contracting party to which a notification is filed.
The aviation authorities of each party strive to do everything in their power to approve or disapprove of any agreement presented in accordance with this paragraph, in whole or in part, on the 60th day following its presentation. Each contracting party may require that the tariffs it has approved be submitted and published in accordance with its legislation. Bermuda II has been the subject of several revisions since its signing, the last in 1995.  Although Bermuda II was much less restrictive than the original Bermuda agreement it replaced, it was widely regarded as a very restrictive agreement, in the context of the continued liberalization of the regulatory framework applicable to the airline industry in different parts of the world.