The US Transportation Department and the Mexican government have agreed to update the aviation agreement between the two countries that limits the number of flights allowed in each country. The new agreement will allow for more services between the US-Mexico routes.
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The current agreement was written in 2005 and permits up to two airlines of each side to serve most U.S.-Mexico city pairs, with a three-carrier limit for 14 specific destinations, including major tourism sites as Acapulco, Cancun, Cozumel, Mazatlan, Huatulco, Puerto Vallarta and San Jose del Cabo.
The new agreement will be effective January 1, 2016 and will do away with the current limits to allow an unlimited number of carriers to serve US-Mexico city pairs.
The US Transportation Department said the agreement will introduce more pricing flexibility into the market, but stopped short of calling it an “Open Skies” agreement, a term that generally refers to the elimination of all pricing and routing restrictions.
“Travelers, shippers, airlines, and the economies of both countries will benefit from competitive pricing and more convenient air service,” U.S. Transportation Secretary Anthony Foxx said in a statement. “This agreement is the result of the commitment on both sides of the border to strengthen the strong bonds of trade and tourism between our two countries, and demonstrate our shared commitment to a competitive, market-based international economic system.”