Brazil and United States-open skies agreement
Brazil and United States, now allies with the Open Skies Policy.
After seven years of processing in the Brazilian legislative power, the Federal Senate approved the open skies agreement between Brazil and the United States on the afternoon of this Wednesday, March 7. The agreement now follows for its enactment by the executive branch. The agreement was signed between the former president of Brazil, Dilma Rousseff and his US counterpart, Barack Obama, in March 2011. After six years frozen in the Chamber of Deputies, at the end of last year the proposal was approved and continued for its vote in the Senate.
The agreement establishes that the opening or closing of new air routes between Brazil and the United States will become free, according to the decision of the airlines of those countries, while the current limit is three hundred flights per week. Other elements included in this agreement, such as the creation of new flights departing from secondary cities and the expansion of shared code agreements were already in force through a Memorandum of Understanding (MoU, in English) signed previously between both countries.
Through a statement, LATAM Airlines Brazil welcomed the decision, noting that the open skies agreement will benefit passengers with the creation of new flights, price reduction and economic growth to the country. The approval of this agreement was one of the requirements for the continuation of the joint commercial agreement (JBA) between the Brazilian and American Airlines, increasing the connectivity between South America and the United States.
The accord was a requirement for the U.S. Department of Transportation to approve a business deal between American Airlines and LATAM, the two largest carriers in the region, which would see them co-ordinating schedules and offering more connections.
Brazil’s anti-trust agency has already given the green light for the partnership. In 2016, Chile-headquartered LATAM signed the joint business agreement with American, and another with IAG’s (ICAG.L) British Airways and Iberia, all members of the Oneworld Alliance.
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By: CNLE Law