Brazil Senate Approves US Open Skies Agreement

The Brazilian Senate has approved an Open Skies agreement with the United States, creating a new legal framework for air services between the countries.

The agreement, originally signed in 2011, will allow airlines from each country to increase services but stops short of a full cabotage deal, with US carriers still unable to fly domestic services in Brazil.

The agreement was criticised by some senators because of the potential damage to Brazilian companies, but it is now expected to be signed by the country’s president soon.

The Open Skies agreement is a requirement for the US Department of Transportation to approve American Airlines’ proposed Joint Business Agreement (JBA) with LATAM Airlines Group.

American applauded the Senate vote saying “Open Skies agreements have proven to increase travel choices and enhance competition, resulting in greater benefits for consumers and positively impacting economic growth.”

The American-LATAM JBA was announced in January 2016 and covers travel between the US and Canada and Brazil, Chile, Colombia, Paraguay, Peru and Uruguay. It received regulatory approval from Uruguay in 2016, and Brazil and Colombia in 2017.