Argentina, Brazil, Chile and Paraguay have signed a memorandum of understanding (MOU) aimed at laying the foundations for a more liberalized South American air transport market.
The agreement, signed July 14 in Asuncion, Paraguay, commits the four countries to work toward progressively opening their aviation markets, reducing regulatory barriers and harmonizing technical and regulatory standards.
Although the MOU does not immediately change market access, it sets out a road map for future negotiations on expanding airlines’ operating rights. It also remains open to other countries, with Uruguay expected to join once it completes domestic administrative procedures.
As part of the initiative, Brazil also signed separate memoranda with Argentina and Paraguay updating bilateral air services arrangements to incorporate seventh-freedom traffic rights for passenger, cargo and combination services. The measures take effect immediately while the underlying bilateral agreements undergo the legal approval process, including ratification by Brazil’s National Congress.
Brazilian Minister of Ports and Airports Tomé Franca says the wider South American Air Liberalization Agreement (ALAS) represents “a first step towards having more connected cities in South America,” adding that the participating countries would study broader air traffic freedoms as the regional framework develops.
Argentina’s government says that the longer-term ambition is considerably broader, with the countries expressing their intention to work toward granting one another “all the freedoms of the air” recognized by ICAO—including ninth-freedom rights—through future agreements developed under ALAS.
The move creates an ALAS working group comprising representatives from the participating aviation authorities. Over the next 12 months, the group will develop proposals covering regulatory harmonization, mutual recognition of certificates and licenses, passenger rights, environmental sustainability, airport infrastructure and air navigation services.
Peter Cerda, CEO of the Latin American and Caribbean Air Transport Association and IATA’s regional vice president for the Americas, welcomes the agreement but cautions that the real test will come during implementation.
“For more than a decade, airlines across Latin America have been progressively enhancing access to air travel, attracting a growing number of travelers across this vast region, where in many cases viable terrestrial transportation is not an option,” Cerda tells Aviation Week. “While in some cases individual countries introduced regulatory frameworks to support this growth, at first glance the MOU signed today by Argentina, Brazil, Chile and Paraguay is a welcome step in the creation of a more integrated aviation ecosystem across key markets, which should lead to more choice, enhanced connectivity and improved financial viability of airlines in the region, thus sustaining aviation contribution to social-economic development.”
However, Cerda says that the success of the ALAS will ultimately depend on governments translating the political declaration into action. “The real challenge will be achieving regulatory and technical harmonization to ensure consistent implementation across the four countries,” he explains. “It will be important to understand from the regulators the actual text of the agreement and the political context behind it. If there is genuine political commitment, meaningful progress could be achieved in the near term. However, experience shows that implementation is often more difficult than signing the agreement itself”…
