MEXICO CITY, MEXICO — Last week, the Mexican government announced that it would allow foreign carriers to operate domestic flights to push rising airfares down.
The current regulations in Mexico prohibit foreign airlines from operating dedicated domestic flights. For example, a U.S. airline can currently fly from New York to Cancun but not from Cancun to Mexico City. Known as cabotage.
López Obrador, the head of the Mexican government, wants airlines from Europe and the United States to come to Mexico so that they can compete with local airlines to drive expensive airfares down.
“Let’s open it up to the competition. That’s the democracy,” Obrador said.
Mexican president wants to lower domestic airfares and connect smaller cities to major hubs that lack flights.
