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On July 14, Argentina, Brazil, Chile, and Paraguay signed the South American Air Liberalization Agreement (ALAS), now joined by Uruguay and Bolivia. This initiative lays the foundation for what its promoters call the “South American Single Sky.”

The agreement provides for the multilateral and reciprocal granting of all air freedoms recognized by ICAO, including the ninth freedom—the broadest of all—which will allow airlines from signatory countries to operate domestic cabotage flights within the territory of any other member state. It also establishes the creation of the ALAS Working Group, which within twelve months must present an implementation proposal focused on mutual recognition of licenses, regulatory harmonization, facilitation of air transport, passenger rights, environmental sustainability, and infrastructure.

ACI-LAC Welcomes the Initiative

As the international association representing airports across Latin America and the Caribbean, ACI-LAC celebrates this milestone. While the final text is still awaited, we understand that the agreement is aligned with international best practices in deregulation and liberalization of air transport, representing excellent news for the region’s development and connectivity.

An Agenda Long Promoted by ACI-LAC

ACI-LAC has long advocated for the transformation of the regional regulatory framework. In 2023, we promoted the Miami Declaration, urging governments to move toward a more liberalized and attractive business environment, linking aviation with strategic objectives in economic development, mobility, logistics, and tourism.

Recently, we have observed a positive trend toward more open bilateral agreements in the region—led notably by Argentina. However, what makes ALAS truly transformative is that it goes beyond commercial liberalization to promote genuine deregulation. Deregulation transcends mere market opening; it establishes a framework of common rules and mutual recognition of licenses and safety processes. This deep harmonization allows an airline to operate across borders with the same legal validity and operational freedom as a local national operator.

International Evidence Is Clear

The positive impact of such processes is strongly supported by global experience. The most cited case remains the European Single Market, created through three legislative packages between 1987 and 1992. Between 1992 and 2003, it generated more than 1.4 million full-time jobs and contributed USD 85 billion to the European GDP.

After joining the European Union in 2004, Poland more than doubled its passenger traffic in just six years, creating over 19,000 jobs at its main airports, with regional airports being the primary beneficiaries. This success also had a clear spillover effect beyond EU borders. Neighboring non-EU countries such as Morocco (2006) and Georgia (2010) signed their own open skies agreements with the bloc after witnessing the benefits. Within a few years, these countries tripled or quadrupled their air capacity and connectivity, generating extraordinary economic gains, particularly in tourism.

Other examples include the EU–US agreement (2007), the EU–Canada agreement (2009), and the Single Market between Australia and New Zealand (1996), which increased bilateral traffic by 56% and generated more than 20,000 jobs and USD 726 million GDP in each country. These cases confirm the same success pattern worldwide.

Operational Advantages and a Boost for Regional Aviation

Transforming our region into a single market represents a radical paradigm shift with highly positive effects for the entire ecosystem. The ability to operate freely within other countries—not only to and from them, but also between their own cities—completely changes the operational model.

An integrated market benefits all types of airlines, not just low-cost carriers, because treating a group of countries as a single territory allows bases to be opened at any airport, domestic flights to be operated, and new routes to be launched quickly—without case-by-case approvals or the need to establish local subsidiaries in each market.

At ACI-LAC, we see enormous potential in this agreement for the revitalization of regional aviation, a long-standing challenge in our continent. Today, regional connectivity faces serious limitations not only across borders but even within many countries, where supply is disproportionately concentrated in capitals and major hubs, leaving provinces and mid-sized cities disconnected. ALAS removes regulatory rigidities and opens the door for operators of any size to emerge or expand, dedicated to regional development. With the scale and flexibility of a unified continental market, airlines will be able to establish bases or activate routes at underutilized secondary airports as a straightforward commercial decision, boosting territorial connectivity both domestically and continent-wide.

Looking Ahead: A Gradual but Steady Process

It is important to be realistic about timelines, as implementation will be gradual and effective operation will take time. However, the direction of ALAS is the right one. The most effective path to strengthening air transport in our continent requires combining full liberalization—up to the ninth freedom—with effective deregulation that harmonizes regulations and ensures mutual recognition.

This is the road toward a true Single Aviation Market “Made in LAC”, benefiting both major hubs and regional airports. That is why ACI-LAC encourages all countries in the region to join this agreement, as greater market integration will maximize the positive impact on the societies and economies of our nations and their regions.