Executive Briefings

Agreement to Open U.S.-Mexico Air Cargo Market Much Wider

An agreement between Mexico and the United States, scheduled to become effective by Jan. 1, 2016, would remove all limits on the number of airlines that can provide passenger or cargo service between destinations in both countries. If enacted, the new policy would allow new carriers to enter the market, while carriers already in the market would have the freedom to fly to new cities.

Agreement to Open U.S.-Mexico Air Cargo Market Much Wider

A release from the U.S. Department of State said that, under the agreement, “cargo airlines, for the first time, will have expanded opportunities to provide service to new destinations that were not available under the current agreement.” The U.S. Department of Transportation said the agreement would provide “unlimited market access for U.S. and Mexican air carriers, improved intermodal rights, pricing flexibility and other important commercial rights.” The agreement would also have an impact beyond the two countries, due to the inclusion of fifth freedom rights, allowing U.S. and Mexican airlines to pick up passengers and/or freight in the other country and carry on to a third country. UPS, which currently operates 20 UPS Express centers and serves about 60 international airports within Mexico, said it applauded the agreement for potentially allowing it to develop deeper connections between the U.S., Mexico and the rest of Latin America.

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A release from the U.S. Department of State said that, under the agreement, “cargo airlines, for the first time, will have expanded opportunities to provide service to new destinations that were not available under the current agreement.” The U.S. Department of Transportation said the agreement would provide “unlimited market access for U.S. and Mexican air carriers, improved intermodal rights, pricing flexibility and other important commercial rights.” The agreement would also have an impact beyond the two countries, due to the inclusion of fifth freedom rights, allowing U.S. and Mexican airlines to pick up passengers and/or freight in the other country and carry on to a third country. UPS, which currently operates 20 UPS Express centers and serves about 60 international airports within Mexico, said it applauded the agreement for potentially allowing it to develop deeper connections between the U.S., Mexico and the rest of Latin America.

Read Full Article

Agreement to Open U.S.-Mexico Air Cargo Market Much Wider