The Role of Bilateral Air Service Agreements for Florida-Based Carriers

With its major hub airports and key locations near the Atlantic, the Gulf of Mexico, and the Caribbean Sea, Florida is a top departure spot for international flights. Any air carrier traveling to other countries, or even just through their airspace, must understand the agreements between those countries and the US.

Bilateral Agreements and the Open Skies Policy

Through a bilateral air service agreement, two countries establish air transport policies, determining whether and how carriers can enter the country, cross the airspace, and establish commercial routes. In the past, many countries regulated travel rights to award advantages to their own country’s airlines and restrict foreign competition or even presence. However, this is less common than it was.

For scheduled air services, international treaties recognize the rights known as the Five Freedoms of the Air:

  • First: the freedom granted by one state to another to allow crossings through their airspace
  • Second: the freedom granted by one state to another to land for non-traffic purposes
  • Third: the freedom granted by one state for another state’s carriers “to put down, in the territory of the first State, traffic coming from the home State of the carrier”
  • Fourth: the freedom granted “to take on, in the territory of the first State, traffic destined for the home State of the carrier”
  • Fifth: the freedom granted “to put down and to take on, in the territory of the first State, traffic coming from or destined to a third State”

Since 1992, the US has maintained an Open Skies policy in air service agreements, “designed to eliminate government intervention in airline decision-making about routes, capacity, and pricing in international markets.”

This policy has increased carriers’ ability to offer travel and passengers’ ability to afford it. According to the Greater Orlando Aviation Authority, just one Open Skies agreement “helped increase the number of visitors from Brazil to Orlando from 74,000 in 2004 to 768,000 in 2013.”

The US is a party to two major multilateral air service agreements:

  • the EU Open Skies Agreement with the member states of the EU
  • the Multilateral Agreement on the Liberalization of International Air Transportation (MALIAT) with seven Pacific and Southeast Asian nations

While recognizing some of the Freedoms of the Air, bilateral air service agreements do not necessarily provide unconditional permission to operate. Aviation safety and security, for example, take precedence, and one nation can deny admission to another’s carriers if they cannot satisfy regulations. Moreover, the contracting nations—particularly the US—generally refuse to allow foreign carriers to carry purely domestic traffic within their borders.

And, of course, “Freedom” does not have to mean “free of charge.” Depending on the local civil aviation policies, overflight charges and permit costs will still apply.

US Air Service Agreements with Florida’s Nearest Nations

  • The Bahamas: A 2020 agreement recognizes the first two Freedoms between the nations. Non-Bahamian air carriers must be licensed to operate under the Bahamas Civil Aviation Act. This includes charters, although an Ad Hoc permit may cover occasional landings.
  • The British Virgin Islands, the Cayman Islands, and Turks and Caicos: As British Overseas Territories, these states are subject to the latest agreements between the UK and the US. However, they have separate air authorities that grant permission for business operations.
  • Cuba: A 2016 agreement recognizes the Five Freedoms between the two nations. Scheduled flights to and from Cuba are limited to 20 per day per airline to Havana or 10 per day to any other Cuban airport. Charter flights are not limited.
  • Dominican Republic: The US has signed a new Open Skies agreement with the Dominican Republic, allowing unlimited flights between the countries. However, as of this writing, it has not formally entered into force.
  • Haiti: Although it has an Open Skies agreement with the US, regulations for travel to Haiti are currently in flux. Seek legal advice for any plans to fly to Haiti.
  • Jamaica: A 2008 agreement recognizes the first two Freedoms between the nations. Foreign air carriers, including charters, must receive a permit or license from the Jamaica Civil Air Authority.
  • Mexico: A 2015 agreement recognizes the first two Freedoms between the countries, but passenger flights must take place between a number of designated points. Charter flights from the US are permissible, but they require authorization from Mexico, and recent regulation changes can be inconsistently enforced.

Your First Officer for Overseas Operations

Government turnovers and shifting policies can lead to sudden changes in aviation policy. Now more than ever, it’s vital to have knowledgeable counsel who understands the aviation world. Our Florida aviation attorneys stay abreast of regulations and requirements for fees, permits, and other business needs so that you can concentrate on the work you do best. Call our Fort Lauderdale office at 954-400-4643 to schedule a free initial consultation for your business needs.