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[BUSINESS] · Argentina, Brazil, Chile, Paraguay, Uruguay · 7 sources

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South American nations sign agreement to create Single South American Sky

Brazil, Argentina, Chile, and Paraguay have signed a memorandum of understanding in Asunción to establish the Single South American Sky. Inspired by the European model, the agreement aims to integrate regional airspace and increase competition in the aviation sector.

A key component of the deal is the adoption of the seventh freedom of the air. This allows airlines from signatory nations to operate direct commercial flights between two other member countries without the route needing to originate or end in the airline's home country. For example, an Argentine carrier could operate flights between Brazil and Paraguay.

The initiative seeks to attract low-cost carriers, such as Chile's JetSmart and Sky Airline, to expand their operations and increase the availability of regional routes. By breaking the current market dominance of major players like Latam, Gol, and Azul, officials hope to reduce operational costs and lower passenger ticket prices.

A working group has been tasked with harmonizing regulations and developing formal proposals within a 12-month timeframe. Uruguay has expressed interest in joining the agreement, and the proposal remains open to other neighboring nations.

Entities

Argentina · Brazil · Chile · Paraguay · Tomé França

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