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What do you think of the idea of considering flights within and between countries of the Andean Community as domestic? We reviewed this proposed idea during the II Andean Forum.
Let's think about this: you want to fly between Lima and Bogota, lime and Peace or between Quito and Medellin, currently your ticket would be charged on average about $100 for airport taxes for use of the different airports, but what if that value is reduced and you only pay a few fees? $40 Per passenger?
This would be possible if the concept of interborder flights is replicated to all international flights that currently operate between Ecuador, Colombia, Bolivia and Peru.
International taxes for domestic taxes on flights within the CAN
The Andean Community, with its four nations sharing history, similar culture and geographies, It has been an economic block in constant evolution. One of the most recent proposals that seeks to deepen this integration is to consider all flights within the region as domestic., in terms of airport taxes. This measure, that seeks to emulate the current treatment of interborder flights, would promise significant benefits for connectivity and the regional economy.
During the II Andean Forum of the CAN where the challenges for the growth of the airline industry in the subregion were addressed, A proposal was generated that I have also been thinking about for a long time.: that all flights between these 4 countries are considered national in terms of fees and taxes, as for example we see within the European Union bloc.
A strategy more than proven to work and could historically stimulate commercial exchange and the number of frequencies between our nations..
What is an interborder flight?
To have a better context of the proposal, it is appropriate to explain what an interborder or cross-border flight is.. These are flights that already have a regulatory framework within the CAN that allows airlines from these countries to operate flights between airports previously designated for this purpose., that in shape are international, but in terms of charges and fees they are considered domestic.
The best example of this is the route that the airline currently operates as a charter Aeroregional, that operates the Quito route – Esmeraldas – Cali and that in the Esmeraldas section – Cali is fully considered a domestic flight for collection of fees and taxes., but it still requires that passengers carry out all the immigration processes of the case.
Also at one time Saereo operated the Quito route – Santa Rosa – Piura with Peru, generating another cross-border route, This would be the general concept of the proposal.
Potential benefits
Let's first review the benefits that we could see from a measure as disruptive for Latin America as this one.:
- Greater connectivity: The reduction in airport taxes will encourage airlines to increase the frequency of flights between the capitals and secondary cities of the member countries, facilitating tourism, trade and cultural exchanges.
- Stimulus for tourism: Lower airfares will attract more tourists, both national and international, boosting the economy of the regions involved.
- Airline competitiveness: By reducing operating costs, Airlines will be able to offer more competitive fares, which in turn will generate greater demand for flights.
- Strengthening the tourism value chain: Greater air connectivity will benefit the entire tourism value chain, from hoteliers and restaurants to travel agencies and tour operators.
Challenges and Considerations
Of course, writing these lines is very easy, But achieving it is much more complex and requires a lot of political will from the different parties., but above all, the good offices of private airport operators and concessionaires in the CAN:
- Impact on tax revenue: Reducing airport fees could lead to a decrease in tax revenue for local governments, but extensive studies and projections of demand growth must be carried out based on an economy of scale..
- Coordination between countries: The implementation of this measure requires close coordination between the four member countries., both at the government level and at the airport authorities level.
- Fairness in competition: It is necessary to ensure that this measure does not distort competition between national and foreign airlines operating in the region..
- Airport infrastructure: Increased demand for flights could test the capacity of the region's airports. Investments in infrastructure will be required to ensure efficient and safe operation.
The proposal to consider flights within the Andean Community as domestic represents a unique opportunity to deepen regional integration, stimulate economic growth and improve the quality of life of citizens. While there are challenges that must be addressed, The potential benefits are undeniable.
It is essential that the governments of the member countries work together with the private sector to guarantee a successful implementation of this measure., considering aspects such as environmental sustainability, fairness in competition and the participation of all actors involved. in addition, It is necessary for civil society to get involved in this debate, expressing their opinions and demands.
By converting the Andean airspace into a single sky, we will be taking a significant step towards building a more integrated region, competitive and sustainable.
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