Executive Briefings

Pact to 'Significantly' Increase Air Cargo Shipments Between U.S., Mexico

The United States and Mexico exchanged diplomatic notes to bring into force the new Air Transport Agreement, which the U.S. Department of Transportation anticipates will "significantly increase future trade and travel" between the two countries.

The deal, set to go into effect Aug. 21, will open up new routes between the U.S. and Mexico, permitting an unlimited number of passenger and cargo flights. Delta Air Lines also stands to benefit, as it closes in on acquiring up to 49 percent of Aeroméxico.

Caitlin Harvey, from the U.S. DOT explained that the agreement opens up a number of new possibilities for all-cargo carriers. "This agreement provides new rights that will allow our cargo carriers to expand their worldwide networks to better integrate services with Mexico. Our carriers will now have traffic rights to start an operation outside of the United States, fly to the United States, fly to Mexico, and then continue to another country (5th and 6th Freedom rights). Cargo carriers will also be able to operate routes between Mexico and a third country without a connection to the United States (7th freedom rights). These types of routes are what allow our all-cargo carriers to provide the fastest services and at the best rates for businesses and shippers. In addition to opening up new opportunities for our cargo carriers, these benefits will foster the growth of business and trade between Mexico and the United States.  Expanding the U.S.–Mexico cargo market will also benefit our airports and businesses while creating new jobs on both sides of the border."

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The deal, set to go into effect Aug. 21, will open up new routes between the U.S. and Mexico, permitting an unlimited number of passenger and cargo flights. Delta Air Lines also stands to benefit, as it closes in on acquiring up to 49 percent of Aeroméxico.

Caitlin Harvey, from the U.S. DOT explained that the agreement opens up a number of new possibilities for all-cargo carriers. "This agreement provides new rights that will allow our cargo carriers to expand their worldwide networks to better integrate services with Mexico. Our carriers will now have traffic rights to start an operation outside of the United States, fly to the United States, fly to Mexico, and then continue to another country (5th and 6th Freedom rights). Cargo carriers will also be able to operate routes between Mexico and a third country without a connection to the United States (7th freedom rights). These types of routes are what allow our all-cargo carriers to provide the fastest services and at the best rates for businesses and shippers. In addition to opening up new opportunities for our cargo carriers, these benefits will foster the growth of business and trade between Mexico and the United States.  Expanding the U.S.–Mexico cargo market will also benefit our airports and businesses while creating new jobs on both sides of the border."

Read Full Article