Paraguay's Senate is currently analyzing an air transport agreement with Argentina that replaces a bilateral treaty in force since 1964. The new framework establishes an "open skies" regime, granting greater operational freedom to airlines from both countries.
The agreement, which has already received a favorable opinion from the Foreign Relations committee, allows designated airlines to operate scheduled and non-scheduled passenger and cargo services with more flexibility in routes, frequencies, capacity, and types of aircraft. It also facilitates code-sharing agreements, aircraft leasing, and other forms of commercial cooperation.
Expected benefits include a reduction in ticket costs due to increased competition, the creation of new direct routes connecting cities in Argentina's interior with Paraguay without the need for a mandatory layover in Buenos Aires, and a boost to tourism and cross-border business.
The text stipulates that fares will be set by the airlines themselves based on commercial considerations. Government intervention will be restricted to cases of consumer protection against predatory pricing, the prevention of anti-competitive behavior, or artificially low fares sustained by state subsidies.
The agreement still requires approval from the Paraguayan Senate's Constitutional Affairs and Public Works committees before proceeding to enactment.