Mexico Mulling Granting Permission to US Carriers to Fly Domestic Sectors

 

There are not many instances in the air travel industry wherein one country would allow a foreign airline to fly on domestic sector. However, it Mexico has its way, it can well end up allowing the US based airline companies to fly connections to other domestic cities of the country. If this happens, it will be a path-breaking development with enormous benefits for the American people who would want to fly to more destinations in the country.

Generally, countries would want their own carriers to be operating on domestic routes. However, if the country is not able to meet the demand of people to travel from one city to another, it might allow the foreign carriers to use its infrastructure for connecting various cities. Another situation which would warrant allowing foreign carriers would be when there is too much of passenger traffic from that country and the existing airlines of the country are not able to do it.

Let us first know about the proposal. The proposal is to allow American carriers to ply on domestic routes as a connection. However, there will be no permission given for direct flights between two domestic cities. So, the US carriers will first fly into one city of Mexico from US city and then fly on to a connecting destination within Mexico.

It is a fact that many US tourists visit different cities of Mexico, such as Cancun, Puerto Vallarta, Guadalajara, Mexico City and others, either for vacations or business. There are a good number of passengers who hops from one city to another. If this proposal is accepted, the passengers will be able to book the domestic air tickets on the same flight. They do not have to make two different reservations for this. For most of the passengers, the last mile connectivity will become much easy.

To what extent this will hurt the revenues of the domestic carriers is still not clear. We are assuming that this is going to be calculated measure and the government would have undertaken a detailed analysis of this proposal from all possible dimensions. It would be interesting to keep a tab on the developments related to this news and will even more interesting to watch out the after-effects of the granting of permission.