Air Cabotage, For or Against?

President Andrés Manuel López Obrador proposed an initiative to reform the Aviation Law, which would allow the operation of foreign airlines on domestic routes. Before going through with it, however, the government will negotiate with domestic airlines to make an effort to expand their operations at the Felipe Ángeles International Airport (AIFA). The aviation industry rejects the proposal and makes it clear that opening the skies in such a way will result in foreign companies not paying taxes but instead coming to “destroy aviation.” 

The initiative to amend the Airports and Civil Aviation Laws establishes that granting permits to foreign airlines would be subject to objectives, routes and capacity, among other requirements, according to López Obrador. However, according to industry experts, permitting air cabotage, which includes the transportation of passengers, cargo, mail or a combination thereof between two points in Mexico by foreign airlines, is limited to objectives and is a unilateral opening, meaning it does not offer reciprocity for local airlines. Industry players have insisted that to reactivate AIFA, the first step should be to get out of Category 2 and, secondly, to have a State aeronautical policy, as mentioned in A21. 

The National Chamber of Aerotransports (CANAERO), the National Aviation Defense Front and other industry analysts expressed their disagreement and concern about the presidential initiative. “We reiterate our willingness to find solutions that allow the recovery of Category 1, encourage the development of aviation and promote the use of airport infrastructure, economic and social growth, without jeopardizing the loss of thousands of jobs,” said CANAERO.

Given the industry’s resistance to this change, the president accused national airlines of resisting the public administration of cabotage, which could increase the flow to AIFA. “We are going to look for a way to reach an understanding with the airlines. There are several options: one would be for the industry to help the current airport to battle saturation by operating at the Felipe Ángeles airport. Second, the Ministry of National Defense could also have its planned airline, Mexicana de Aviación, fly more frequently to AIFA and other airports in the south of the country,” said López Obrador during his morning conference. The president said the government is seeking alternatives for the optimization of air transportation, hoping to ensure quality service and to establish costs that are more accessible to the public. 

The proposal has already been sent to commissions and would allow cabotage of foreign permit holders at domestic airports and airfields that have the infrastructure and specifications required to provide this service and whose routes are of strategic interest for the development of the Mexican State’s airport infrastructure.