México | Cabotage flights proposal

On December 16, Mexican President Andrés Manuel López Obrador proposed an initiative to reform the Aviation Law that would authorize foreign airlines and parastatals to operate in Mexican territory.

Key points

• Key points:
• The proposal incorporates the figure of "assignment" facilitating the operation of an official airline for indefinitely time.
• In this context, back in June 2022 Mexico kept a Category 2 rating according to the US Federal Aviation Administration.
• The opening of the domestic market must take place in a context of international negotiation that seeks reciprocity with trading partners, mainly the US and Canada.
• Removing barriers to entry is always positive. Increasing the number of competitors on domestic air routes would be beneficial to the entire market.
• The proposal should be reviewed under a broader framework. In particular, from the perspective of international services and public/private investment.

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