Argentina and Brazil Forge Open Skies Agreement to Boost Air Market

Brazil and Argentina have reached a significant milestone in their aviation relations by signing a Memorandum of Understanding (MOU) that ushers in an open skies policy between the two nations. This landmark agreement, facilitated by Brazil’s Agência Nacional de Aviação Civil (ANAC) and Argentina’s Administración Nacional de Aviación Civil (ANAC), was finalized on March 13, marking a new era of aviation freedom in the region.

Under the terms of the MOU, airlines from both countries will no longer be restricted by the previous cap of 170 weekly scheduled passenger flights. This development allows carriers to freely decide the number and frequency of flights they wish to operate between the two countries, fostering a more competitive and dynamic air travel environment.

The agreement not only benefits passenger airlines but also significantly liberalizes cargo operations. For the first time, cargo airlines from Brazil and Argentina are granted the ability to conduct freighter services without the obligation for flights to originate or terminate in their home country, introducing seventh freedom cargo rights into the bilateral aviation framework.

This move is expected to significantly benefit airlines operating between Brazil and Argentina, including Aerolíneas Argentinas, Flybondi, GOL Linhas Aéreas Inteligentes, LATAM Airlines Brasil, Azul Linhas Aéreas Brasileiras, and JetSMART. Additionally, it impacts non-Argentinian/Brazilian carriers like Air Canada, British Airways, Emirates, Ethiopian Airlines, Lufthansa, Swiss, and Turkish Airlines that offer fifth-freedom flights between the two countries.

Brazil’s proactive stance in negotiating seventh freedom cargo rights extends beyond Argentina, with ongoing discussions with other Latin American nations such as Chile, Costa Rica, Cuba, the Dominican Republic, Panama, Paraguay, Peru, Uruguay, and Venezuela.

The implementation date for the open skies policy remains unannounced. However, this policy aligns with Argentine President Javier Milei’s vision for a liberalized aviation market, following his recent repeal of legislation that regulated Argentina’s air service agreements and limited domestic traffic rights to Argentine carriers.

This open skies agreement between Argentina and Brazil signifies a substantial shift towards liberalization in South American aviation, promising enhanced connectivity, increased competition, and potentially lower fares for passengers, alongside greater operational flexibility for airlines.