The first flights between Madrid and Gibraltar started on Saturday (December 16) after a landmark deal with Britain to cooperate to solve problems In the region despite the dispute over ownership of the Rock. The daily service by Spanish flag carrier Iberia came thanks to a September agreement between Spain, Britain and Gibraltar in September over the British-ruled territory. The first Iberia carrier to arrive in Gibraltar in half a century, touched down from Madrid at 1 pm (1200GMT). Gibraltar officials lead by Chief Minister Peter Caruana were expecting the arrival at Gibraltar's Airport. "Both sides have worked hard to make sure that the important issues to them are protected but then we worked the space in between to deliver agreements that are practical benefits to citizens of both sides of the border," Caruana told reporters. Opening up Gibraltar's airport -- which Spain says is on land not ceded to Britain under the Treaty of Utrecht in 1713 --will also benefit the Spanish side of the border, which is underdeveloped. Spanish Deputy Foreign Minister Bernardino Leon, who travelled to Gibraltar in the Iberia inaugural flight said that the agreement doesn't solve the current issues between Britain and Spain over the Rock but it is a step forward in the process. "All parties have decided to keep to maintain their own positions but none the less to open a new frame work of cooperation and I would like these agreements of air transportation also materialises the wishes of citizens on both sides of the fence to find to search new areas of cooperation," Leon said. Under the three-way agreement, travellers arriving in Gibraltar from Madrid will be able to cross straight into Spain without passing through British customs. For people on the streets of Gibraltar, the arrival of the first Spanish plane, comes as a relief for their travel to the United Kingdom. "I think it is a big improvement in the relationship with Spain. I think it can only be positive," said Erik Estela. Not many of them, however, think that this type of agreements reflect the relationship of people on both sides of the border. "There are more political issues with how the states are done and things like that but, with the people of course there are good relationships," said Estela's wife, Sarah. Earlier on Saturday a British Airways plane departed from Gibraltar's airport to Madrid in an inaugural flight that took a group of children from the Rock. British Airways will officially launch its daily service to the Spanish capital in March 2007.