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After the Law for the Strengthening of Protected Areas was published in the official registry, Ecuador opened its skies completely with cabotage.
This is a topic that we have already talked about on the blog., first with the idea of Total open skies as a solution to the lack of competition in the country, as Argentina does, and also regulatory changes and certification that the DGAC announced a few months ago to make the AOC validation process faster.
I leave you both readings for analysis.:
However, After the announcement of the DGAC to certify foreign airlines in 30 days, something record, so that they can operate on domestic routes in Ecuador, It has taken an important step: The required changes were made on the day of official registration, although via a Law that according to my low legal knowledge, It has nothing to do with aviation., since it is from national parks.
Ecuador will allow foreign airlines to do cabotage
Leaving the legal issue aside, I'm sure several of you will know more, the details of the DAC proposal to attract more airlines via an express certification process for foreign airlines that already have an AOC granted by another authority, More details are becoming known and this is what the changes say:
Reformatory provisions. Quarter:
- In the Codification of the Aeronautical Code, carry out the following reforms:
- Delete the article 117.
- Include as General Provision, The next:
- GENERAL PROVISION
UNIQUE.- In the case of domestic air operation by international air operators, after your domicile in Ecuador and obtaining the operating permit from the National Civil Aviation Council, the General Directorate of Civil Aviation, will automatically recognize the Certificate of Operation (AOC) of these companies granted by the authorities of their country of origin. For this purpose, the General Directorate of Civil Aviation, must implement the corresponding regulations within a period no longer than 30 days.
Reformatory provisions. Quinta:
- In the Codification of the Civil Aviation Law, replace the number 5 of the article 59 for the following:
- 5) Be operated by legal entities, duly certified, that have the authorization granted by the National Civil Aviation Council.
What are the changes?
First, it is noted that the Article is deleted 117 of the Aeronautical Code, which said the following:
- Commercial air services to be carried out exclusively in Ecuador may only be operated by natural persons of
Ecuadorian nationality or by national legal entities constituted under the rule of Ecuadorian laws.
This opens the doors for foreign airlines to offer air services in Ecuador.
Following, there is talk of a general provision, which indicates that the only requirements for a foreign airline to carry out a domestic operation in Ecuador is to be domiciled in the country and obtain an operating permit from the CNAC.. After that, Your AOC will be automatically recognized by the DAC within a period of 30 days.
Finally, a change is mentioned in the Civil Aviation Law where the numeral is changed 5 of the article 59, which said the following:
- Be operated by a natural or legal person, ecuadorian, duly certified, that has authorization granted by the National Civil Aviation Council or by the Director;
This eliminates the requirement that ,For an aircraft to operate aerocommercial activities in Ecuadorian territory, it must be operated by an Ecuadorian natural or legal person., but, may be of any nationality, but it must be a legal entity and approved by CNAC.
Let's remember that, so that these changes enters into force, The DGAC must generate a regulation for the application of these changes in the law.
What is cabotage?
Basically, Cabotage is a concept or word that became popular in Argentina and is mentioned in marine transportation., This term means that a foreign airline from any country can operate within another territory without having to be a certified airline under local regulations and laws..
The importance of cabotage lies in the fact that it allows a better connection and distribution of goods and people within a State., optimizing routes and reducing logistics costs by avoiding “empty” journeys. Each country has its own regulations to regulate cabotage, looking for a balance between national and foreign carriers to guarantee fair competition.
An example would be that, a Colombian airline that lands in Quito on international flight, if you request it and your operating permit is authorized, You can fly from there to Guayaquil, Cuenca, Manta or the destinations that interest you commercially without any restriction on frequencies or schedules.
Cabotage benefits
In general terms, An opening to cabotage would bring the following benefits:
- Increase in offer.
- Price reduction due to increased competition.
- More options for traveling.
- Hiring some percentage of additional personnel for the operation of these flights.
Disadvantages and concerns
Although the Open Skies policy offers many benefits, Its implementation also presents significant challenges that must be carefully addressed.:
- It is crucial to evaluate how the arrival of new international airlines operating domestic flights could affect the competitiveness and viability of local airlines.. Deep analysis is needed to ensure a level playing field.
- To handle the foreseeable increase in the demand for flights and passengers, It is essential that the country has a modern and capable airport infrastructure. This includes everything from runways and terminals to air traffic control services..
- The expansion of air connectivity requires a robust regulatory framework. It is essential to establish clear and effective standards to guarantee operational security, quality of service and consumer protection.
- It is important to ensure all current sources of employment for the airlines that have invested and invested in Ecuador for years..
- Guarantee the work of all operational staff of pilots and cabin crew plus the Ecuadorian technical team.
On the other hand, Doubts remain about the nationality of pilots who would operate domestic flights, since the Civil Aviation Law says that it must be Ecuadorian personnel, What will the certification processes be like and what will the regulations say that the DAC must carry out?.
And something even more important, What will happen to flights to Galapagos? Will foreign airlines be able to fly to Galapagos within these changes?? Will there be a frequency limit or will Equair frequencies that have not yet been assigned be used??
These changes in the law entered into force 15 of June, day of publication in the official registry.
What do you think of these changes in the law??
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