The main objective of the Bill is to allow cabotage practices by foreign permit holders. However, the Bill establishes various requirements for the AFAC to authorize such activities and allow passenger, cargo and mail operations between two points in Mexico.

Among the requirements established by the Bill to be approved for this type of cabotage operations are: (i) public utility, (ii) public interest or national security, (iii) that the route is of strategic interest for the development of the country's airport infrastructure, and (iv) that the airport through which the operations are carried out has the technical and operational capacity for such operations.

The Bill seeks to justify the practice of cabotage, arguing that it will allow an increase in tourism, which is one of the country's main sources of income. Apparently, the objective is to benefit the users of air transportation for tourism or commercial purposes, since regional routes are expanded, connecting flights are improved and the costs for the same services are considerably lowered. However, we believe that it is essential to conduct an analysis of potential cabotage activities to determine the feasibility of carrying out these practices and the implications that it could, in turn, bring about for the airports and aviation industry in Mexico.

Likewise, we consider convenient carrying out an analysis of international aviation conventions in order to identify potential breaches in this regard. Also, we deem convenient to start a transparent dialogue with the actors involved.

With respect to the Airports Law, the AFAC would be required to issue technical-administrative provisions on airport matters for the surveillance, supervision, inspection and verification of aerodromes. In turn, the airport concessionaire would be required to prepare a master development program, which will be reviewed every five years. The purpose of this amendment is to make Mexican parameters compatible with the international parameters established by the International Civil Aviation Organization.

Currently, the initiative is pending analysis in the original commissions of the Chamber of Deputies and in the next few months we will be able to follow up on its status and its potential approval.

Next steps

Should you require additional information on this aviation initiative as well as advice on potential cabotage practices, we are available to assist you.

Authored by: Julio Zugasti and Reneé Penhos