It seems that the recent below-the-belt remarks about Mexico made by Donald Trump, candidate for the US Presidency, has not put Mexican and USA officials off-track with their plans to introduce new Air Transport Agreement between the two countries.
Diplomatic notes exchange paves the way
Both countries exchanged diplomatic notes on the issue and this is seen as taking an important step towards what the U.S. Department of Transport (DOT) states as being a significant step to further increase trade and travel between both countries.
The new ‘modernized’ agreement is aimed at giving cargo and passenger airlines expanded opportunities for services between the United States and Mexico.
The deal gives unlimited market access for U.S. and Mexican carriers, improved intermodal rights, better pricing flexibility as well as other updated important commercial rights.
Furthermore, the numerical limitations on the number of airlines that are allowed to provide passenger services between both countries, will be dropped.
Cargo carriers to gain more benefits
The agreement gives cargo carriers from both countries new traffic rights which allows them to expand their worldwide networks.
As an example, the DOT says that in essence a U.S. cargo carrier will now have rights to start operations outside of the U.S., fly into the U.S., onto Mexico and then continue the operation to another foreign county.
So called ‘fifth and sixth-freedom traffic rights.’
Seventh-freedom rights are also a possibility whereby cargo carriers can for example exercise the right to operate between Mexico and a third country without flying through the United States.
The cargo carriers seem to welcome this new Air Transport Agreement, which they hope will give them far better opportunities to offer sectors to their clients which were impossible under the old and very outdated agreement.
In a nutshell it means that both country’s airlines can offer all-cargo operations from any U.S. or Mexican airport by using an intermediate stop to any destination in another country.
Mr Trump, if he becomes president, would be well advised to concentrate on promoting this agreement for the benefit of both economies and not be ranting on about erecting a wall between the USA and Mexico.
John Mc Donagh
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