On January 24, the bilateral agreement known as "Open Skies" came into force, which considers flights between both countries as domestic.
The agreement reached between the two countries, which aims to promote tourism and investment, was announced by the vice presidents of Guatemala, Guillermo Castillo, and El Salvador, Felix Ulloa.
An agreement is being established to promote the arrival of new airlines into the country streamlining the processes of registration and starting commercial operations.
The Superintendency of Competition and Civil Aviation has signed an agreement designed to promote competition in the airline market in the country, streamlining and simplifying the formalities the must be completed in order to start operations.
A 10% increase is projected in the number of Canadian tourists visiting El Salvador when the agreement between the governments becomes official.
During the six month long winter season from December to May, about 16 million Canadians leave their country in search of warm destinations in the Caribbean and Central America, and on average, about 25,000 of them come to El Salvador.
Central American countries need to grant each other complete air freedom, with unrestricted frequencies and multiple designations.
A study of the conditions of competition in air transport for passengers in El Salvador, prepared by the Superintendency of Competition in the country, contains relevant definitions for optimization of air transport not only for El Salvador, but also all other Central countries.
A series of reforms to the Civil Aeronautics Act establishes a policy of open skies and eventual pricing setting.
From a press release issued by the Legislative Assembly of El Salvador:
With 81 votes in favor, the Members of Parliament on Thursday approved nine amendments to the Civil Aeronautics Act, among which is the creation of an Open Skies policy which is consistent with globalization and with the regulations of other countries, to enable authorities to establish competitive agreements with air transport markets on a large scale.
There has been a favourable response to the bill establishing an open skies policy based on reciprocity with states and airlines.
From a press release by the Legislative Assembly of El Salvador:
The Commission of Public Works, Transport and Housing of the Legislative Assembly, reached a favourable ruling regarding the reform to the Civil Aviation Act, to establish in the country a "Open Skies Policy" and create greater competitiveness in the airlines market with fares which are more accessible to users.
Air agreements have been approved with El Salvador, Chile, Ecuador, Colombia and Cuba in order to strengthen the open skies policy.
From a press release issued by the Legislative Assembly of El Salvador:
The House has approved legislation ratifying four agreements on air transport agreements between the Government of El Salvador and the Governments of Chile, Ecuador, Colombia and Cuba, which were submitted to the House by the Committee on Foreign Relations, Central American Integration and Salvadorans Abroad.
State protectionism reduces the competitiveness of Latin American air transport, restricting its development and producing prices that are above the global average.
Despite progress in some countries, the region is moving at a slow pace in terms of liberalization and the steady trend of lower prices observed in Europe and the USA.
This was explained by the Chilean expert, Aldo Gonzalez, who added that "Latin America as a whole space, is lagging behind," although "locally some countries are very liberal and are very open."
The Autonomous Executive Port Commission of El Salvador recommends having intermediate policies which are somewhere between "closed skies" and "open skies" as a way to lower air fares.
An article in Laprensagráfica.com reports that the Commission for public works, transport and housing of the Legislature "is examining proposing reforms to the Civil Aviation Act on open skies.
The United Arab Emirates and El Salvador have signed a memorandum of understanding to facilitate air transport.
Under the agreement, airlines from both countries will have total freedom in setting routes, passenger and freight volumes and types of aircraft for flights between the two countries.
"It also contains a "fifth freedom" clause, which gives companies the right to embark and disembark passengers, mail and cargo who are on their way to or coming from third party countries", reported Prensalibre.com.
An open skies-type bilateral air transport agreement has been concluded between Canada and El Salvador.
Canada's Transport Minister John Baird and the Honourable Peter Van Loan, Minister of International Trade, today announced that an open skies-type bilateral air transport agreement has been concluded between Canada and El Salvador. This new agreement is another accomplishment under Canada's Blue Sky international air transportation policy, and is great news for travellers and Canadian businesses.