Cabotage to Increase Competition, Lower Prices: López Obrador

President Andrés Manuel López Obrador insisted on the possibility of opening Mexican aviation to foreign carriers, aiming to increase competition and reduce prices.

“Foreign airlines arriving from the EU, the US could also carry out frequencies in the country. This would mean more competition. Recently, we went to Victoria [Tamaulipas] and there were no flights rather than one at 6:00 in the morning, which was very expensive. We are working on this [aviation prices] and we are going to solve it,” said López Obrador.

Cabotage rights allow companies from a certain country to trade in a different one. In aviation, it is the right to operate within the domestic borders of other countries. Cabotage is prohibited in most countries due to public safety, protectionism and national security matters. The main exception is the EU, where all member states grant cabotage rights to each other.

The government is also exploring the possibility to reduce costs by having Aeroméxico, Viva Aerobus and Volaris increase frequencies, said López Obrador. In addition, the president reiterated his intentions to create a new carrier, which could be managed by military engineers, "taking advantage of the Mexican Air Force’s experience to manage an airline.”

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