Uruguay and Chile Sign Agreement to Expand Domestic Flight Operations, Boost Competition in the Region

Chile and Uruguay granted approval for domestic flights within Argentina

Uruguay has signed a memorandum of understanding with the Chilean government to allow for the operation of domestic flights within Argentina by Chilean airlines. This agreement replicates previous agreements with Brazil, Peru, and Ecuador, enabling an unlimited number of flight frequencies between the countries. The partnership with Uruguay opens up new opportunities for airlines such as Aerolíneas Argentinas, Flybondi, JetSmart Argentina, LATAM, Sky, and JetSmart from Chile.

With this agreement in place, airlines from other countries like Brazil have the possibility to establish subsidiaries in Uruguay and operate not only flights between Argentina and Uruguay but also internal flights within Uruguay. This extension applies to both passenger and charter airlines, potentially increasing competition and options for travelers in the region. The government is also looking at signing similar agreements with Germany and Singapore to expand international flight offerings and increase competition in the domestic market.

While expanding air travel agreements is a focus, there has been no mention of privatizing Aerolíneas Argentinas in these discussions. The government’s goal is to maximize the supply of international flights, increase passenger flow, and lower costs through these agreements. The potential partnership with Singapore could be a significant step towards achieving these goals and increasing competition in the airline industry in the region.

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