New Horizons for Paraguay: Open Skies Agreement with Argentina Promises Growth

On Saturday, August 3, 2024, Paraguay and Argentina formalized a groundbreaking agreement through a memorandum of understanding (MOU), marking a significant expansion in the region's aviation sector. This deal enables airlines from both nations to operate domestic routes within each other's territories, provided the flights originate and conclude within the home country of the carrier. The move aims to stimulate tourism and attract increased investment in the region.

Argentina, under President Javier Milei’s administration since December 10, 2023, has actively pursued an open skies policy. This new agreement with Paraguay aligns with Argentina’s existing open skies arrangements with countries such as Brazil, Chile, Peru, Ecuador, Uruguay, Panama, and Canada.

The agreement facilitates the operation of multiple airlines on the same routes, granting them the flexibility to set competitive fares and negotiate business arrangements that best serve their interests. This applies to both passenger and cargo flights, with no restrictions on frequencies dictated by market demand.

José Luis Chávez, Chief of Paraguay's National Directorate of Civil Aeronautics (Dinac), expressed enthusiasm for the agreement, noting its potential to attract significant investments. "We are establishing a framework that encourages investment in our country," Chávez told ABC TV. He highlighted the need for enhancements in airport infrastructure and the broader aeronautical sector, underscoring growing demand for more airlines, flights, and frequencies.

This agreement with Argentina introduces Paraguay to the "ninth freedom," a form of open skies agreement that permits airlines to operate domestic services in another country. "This is the most comprehensive agreement we have secured, opening up a market with increased frequency options," Chávez explained.