Milei moves forward with Brazil, Chile, and Paraguay towards an open skies market

Milei moves forward with Brazil, Chile, and Paraguay towards an open skies market
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porEditorial Team
Argentina

The four countries initiated a process to liberalize flights, expand routes, and facilitate the entry of airlines

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Argentina signed, along with Brazil, Chile, and Paraguay, a memorandum of understanding to advance towards the creation of a South American Single Sky, a scheme aimed at increasing connectivity, fostering competition, and progressively liberalizing regional air transport.

The understanding, called South American Air Liberalization Agreement (ALAS), represents the first step in a negotiation process among the four countries. The goal is to establish a more integrated air commercial market, with fewer restrictions for companies and greater possibilities for connection.

Javier Milei promotes an open skies policy to encourage regional connectivity
Javier Milei promotes an open skies policy to encourage regional connectivity

The initiative is aligned with the open skies policy promoted by the government of President Javier Milei, which seeks to reduce regulations that have limited the entry of new companies, the creation of routes, and the growth of air commercial activity in Argentina for years.

From the Transportation Secretariat, it was explained that the signing countries agreed to work together to promote the free provision of air services and expand operating rights between their respective territories.

More routes and greater competition

Ezeiza International Airport
Ezeiza International Airport

The memorandum aims to increase the number of regional connections and facilitate the arrival of new airlines. Greater competition could expand the available options for passengers and allow the development of routes that currently do not have direct flights.

The governments also expressed their intention to grant reciprocal and multilateral rights for the operation of commercial services, using the air freedoms recognized by the International Civil Aviation Organization as a reference.

Among the possibilities that could be discussed in future negotiations is the so-called Ninth Freedom of the Air. This mechanism allows a foreign airline to operate domestic flights within another country, although its application requires a specific agreement between the involved states.

If realized, a company from one of the signing countries could eventually make internal connections in another participating territory. However, that authorization has not yet been implemented and will depend on the conditions established during the upcoming discussions.

The start of a regional negotiation

The agreement would facilitate the creation of new air commercial routes
The agreement would facilitate the creation of new air commercial routes

The signing of the document does not imply that the South American Single Sky will begin to operate immediately. The memorandum establishes the political and technical bases for Argentina, Brazil, Chile, and Paraguay to negotiate the necessary agreements to gradually liberalize their markets.

The initiative consolidates the shift adopted by Milei's administration away from the closed and regulated air commercial model that prevailed for decades of interventionism. The new scheme bets on competition, private investment, and the freedom of choice for passengers.


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