Mexico’s Senate this week ratified a deal with the United States that would boost competition in air transportation, paving the way for expansion of the world’s second largest cross-border market.
The deal, which both governments have already signed and modifies a 1960 agreement, aims to open up new routes for airlines to fly between the countries, and allow for an unlimited number of flights.
While some analysts welcome the deal, arguing it would lower airfares by boosting traffic, Mexican airline workers have complained it would put their companies at a disadvantage.
Alaska Airlines, seen here at Los Angeles International Airport, wants to expand its routes to Mexico via John Wayne Airport. The airline already flies to Mexico from LAX and other airports in the region. (Photo: OC Register)
The number of annual passengers between Mexico and the United States will increase by 16%, generating up to $650 million USD to the tourism sector, thanks to the approval of the Bilateral Air Transport Agreement between the two countries, Mexico’s Secretariat of Communications and Transportation said.
Currently, and until the agreement enters into force, only two airlines from each country can operate an air route between Mexico and the United States, except for some tourist destinations like Cancun, where up to three carriers by nationality can operate. With the updated agreement there will not be a limit on the number of carriers.
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