The deregulation of Ecuador’s airline industry moved closer to becoming a reality after President, Lenin Moreno, signed a decree that would permit bilateral civil air transport agreements, which will result in the liberalization of the market.
The decree was published on the Presidency’s official Internet page.
According to the decree, the goal is to “promote Latin American integration and promote a strategic insertion of the country in the international context,” allowing for the signing of “flexible bilateral agreements” in a “gradual and progressive manner,”
The policy will make way for the creation of agreements of “free and healthy competition, guaranteeing the permanent provision of services and preventing unfair practices or the abuse of dominant monopolistic positions.”
The government bodies tasked with these negotiations are the Ministries of Transport and Public Works (MTOP) and the Ministry of Foreign Affairs and Human Mobility, along with the ministries of Tourism and Foreign Trade.
The text explains that the “international airports that will be subject of negotiation of these agreements, correspond exclusively to those located in continental Ecuador.” This means that the Galapagos Islands will, for the moment, be excluded from the new policy.
The policy has the potential to drive the country’s tourism industry upward as new carriers are expected to join the marketplace, thus sparking healthy competition, possibly resulting in lower airfares.
This kind of policy could also boost trade and regional incorporation that would greatly help the Andean nation.
“The government policies strengthen our three primary objectives, which are: to encourage domestic tourism; increase the arrival of the foreign tourism, and attracting new investments,” stated the tourism portfolio.