Open Skies: Civil Aviation Agreement Between Brazil And The US

Author:Mr Bruno Melo
Profession:TM Law
 
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On March 7th, 2018, the Brazilian Senate approved Brazil-US Open Skies Agreement ("Agreement"), which was signed in 2011 by the former presidents Dilma Rousseff and Barack Obama. The Agreement aims to improve international air carriage between the signatory countries based on the competition among airlines companies and the guarantee of the utilisation of higher standards of operational security.

Therefore, the Agreement provides some changes in the current "Air Transport Agreement" signed by both countries in 1989. The main difference is the end of the limit of 301 (three hundred and one) weekly flights between countries. Thus, Brazilian and American-based airlines can freely define the offer of flights and routes between countries according to their commercial strategy. The end of the restriction also covers cargo flights, which is a good sign for international trade between the countries.

It is worth noting that the Agreement did not alter the rule for domestic flights in the countries, whose operation is solely executed by national carriers. In other words, Brazilian companies cannot operate domestic flights in the US, and in this sense, American companies cannot operate domestic flights in Brazil.

Article 12 of this Agreement also states that each company may set prices for air transport in accordance with commercial considerations of the market. This forecast, coupled with the end of the weekly flight limit and the...

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