Open skies: end of the monopoly

What changed

It approves the Regulation of Access to Commercial-Aviation Markets (Annex I), the regulation of art. 110 of the Aeronautical Code on business agreements (Annex II) and the Regulation of Capacity and/or Frequency Allocation (Annex III). It establishes an 'open skies' policy (art. 2 of Annex I): free access for new operators via short and agile administrative procedures, tariff deregulation (airlines set prices freely), and freedom in setting frequencies. A transitional capacity/frequency-allocation regime (Annex III) in force until Oct 31, 2025; the permanent one then applies. verif · Jul 8, 2024 ↗

In force

In force since its publication in the Official Gazette on Jul 10, 2024 (art. 13), except for Title II, which enters into force 30 days after publication. The transitional capacity/frequency-allocation regime was in force until Oct 31, 2025; from that date the permanent regime applies. verif · Jul 10, 2024 ↗

Who it affects

National and foreign airlines (scheduled and non-scheduled), new operators seeking to enter the market, airport operators and commercial-aviation service providers. Enforcement authority: the UNDERSECRETARIAT OF AIR TRANSPORT, under the Transport Secretariat of the Ministry of Economy (art. 11); in aerial-work matters jurisdiction remains with ANAC. verif · Jul 8, 2024 ↗

The norm

Decreto 599/2024 (DECTO-2024-599-APN-PTE), an implementing decree of the national Executive, signed Jul 8, 2024. Official title: 'Apruebase Reglamentación' of the Código Aeronautico. It implements the Código Aeronautico (Aeronautical Code, Ley 17.285 and its amendments) and rests on the competition law, Ley 27.442. [Note: the draft's claim that the 'substantive reform of the Code' came from DNU 70/2023 does NOT follow from this primary source and stands as unconfirmed context, not as data; check it separately against DNU 70/2023 before asserting it.] verif · Jul 8, 2024 ↗

Our reading

The State stops deciding who flies, where and at what price: the entry barrier to air transport falls and the fare is set by the market. It is textbook deregulation (R4 · opening and deregulation): more competitors and less red tape push toward lower fares and more routes. What must be watched is that the opening translates into real supply (slots, airport infrastructure) and is not held back by the situation of Aerolíneas Argentinas. thesis

Where it lands, province by province1

Río Negro Bariloche is a leisure destination you reach by air and whose demand is elastic to fares: if airlines set price and frequency without prior permission, how many tourists arrive stops depending on an authorisation and starts depending on price. What the passenger does not spend on the ticket is spent at the destination — hotels, restaurants, excursions — which is where the province captures value. favorable opening and deregulation thesis

Open skies: the sky stops being a monopoly

What changed and who it applies to

Our reading

Where it lands, province by province1

The other rules on this subject36

Get on board the takeoff