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US-Mexico air accord would widen opportunity for air cargo on both sides
AN agreement struck between the US and Mexico would remove all limits on the number of airlines that can provide full services between destinations in both countries - if enacted.
The new policy would allow new carriers to enter the market, while carriers already in the market would have the freedom to fly to new cities, said a US State Department communique.
"Cargo airlines, for the first time, will have expanded opportunities to provide service to new destinations that were not available under the current agreement," it said.
The US Department of Transportation (DOT) said the agreement would provide "unlimited market access for US and Mexican air carriers, improved intermodal rights, pricing flexibility and other important commercial rights".
The agreement would also have an impact beyond the two countries, because of a the inclusion of fifth freedom rights, allowing US and Mexican airlines to pick up passengers and freight in the other country and carry on to a third country.
UPS, which has 20 UPS Express centres serving 60 Mexican airports, applauded the agreement for deepening its connections between the US, Mexico and Latin America.
"This new US-Mexico aviation agreement will improve the optimisation and connectivity of our intermodal network in the region," said UPS vice president Mitch Nichols.
"UPS continues to experience strong growth in Mexico, and the all-cargo fifth-freedom rights in this tentative agreement will help ensure we can provide our customers, large and small, reliable and efficient global distribution solutions," he said.
The decision to remove air freight limits comes at a time when business between the two countries is on an upswing.
According to US data trade value with Mexico and Canada under the North American Free Trade Agreement (NAFTA) increased by USS$7.8 billion in September year on year to reach US$102.2 billion, driven manufacturing and cargo increases.
American GDP expanded 4.6 per cent in the second quarter of 2014 and 3.9 per cent in the third quarter, according to US Commerce Department as Mexico's GDP grew 2.2 per cent in Q3 and 0.8 per cent in Q2.
The new policy would allow new carriers to enter the market, while carriers already in the market would have the freedom to fly to new cities, said a US State Department communique.
"Cargo airlines, for the first time, will have expanded opportunities to provide service to new destinations that were not available under the current agreement," it said.
The US Department of Transportation (DOT) said the agreement would provide "unlimited market access for US and Mexican air carriers, improved intermodal rights, pricing flexibility and other important commercial rights".
The agreement would also have an impact beyond the two countries, because of a the inclusion of fifth freedom rights, allowing US and Mexican airlines to pick up passengers and freight in the other country and carry on to a third country.
UPS, which has 20 UPS Express centres serving 60 Mexican airports, applauded the agreement for deepening its connections between the US, Mexico and Latin America.
"This new US-Mexico aviation agreement will improve the optimisation and connectivity of our intermodal network in the region," said UPS vice president Mitch Nichols.
"UPS continues to experience strong growth in Mexico, and the all-cargo fifth-freedom rights in this tentative agreement will help ensure we can provide our customers, large and small, reliable and efficient global distribution solutions," he said.
The decision to remove air freight limits comes at a time when business between the two countries is on an upswing.
According to US data trade value with Mexico and Canada under the North American Free Trade Agreement (NAFTA) increased by USS$7.8 billion in September year on year to reach US$102.2 billion, driven manufacturing and cargo increases.
American GDP expanded 4.6 per cent in the second quarter of 2014 and 3.9 per cent in the third quarter, according to US Commerce Department as Mexico's GDP grew 2.2 per cent in Q3 and 0.8 per cent in Q2.
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