Paraguay and Argentina sign “Open Skies” MOU

Paraguay and Argentina sign “Open Skies” MOU

Paraguay signed a memorandum of understanding (MOU) with Argentina to join the latter’s “open skies” policy which would allow airlines of each country to operate domestic routes within the other provided flights have a point of origin and a final destination in the carrier’s nation. The initiative seeks to boost tourism and attract further investments. In addition to Paraguay, Argentina already has similar agreements with Brazil, Chile, Peru, Ecuador, Uruguay, Panama, and Canada.

President Javier Milei’s administration has pursued the open skies strategy since its inauguration on Dec. 10, 2023.

Other consequences of the agreement with Paraguay are that multiple airlines would be able to serve the same routes and apply the fares they deem profitable while being free to reach any business accord they find appropriate to better cater to their needs.

This understanding applies to both passenger and cargo flights alike with unlimited frequencies, as dictated by market needs.

Paraguay’s National Directorate of Civil Aeronautics (Dinac) Chief José Luis Chávez welcomed the initiative. “We are creating the necessary framework for investment to come to our country,” he told ABC TV. Not only does Paraguay need investments in airport infrastructure, but also in the aeronautical sector in general. “People are demanding more airlines, flights, and frequencies,” he said.

“This tool is unprecedented for Paraguay, and now we must learn to use it,” he added.

Although Paraguay already has “Open Skies” agreements with other countries, this is the first time that the “ninth freedom” was reached, which allows domestic services in another State. “It is the broadest agreement we have had, and with a market where we already have more frequency,” he also explained.