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Paraguay, Brazil, Argentina, Chile pursue open-skies zone

July 15 (UPI) -- Aviation authorities from Argentina, Brazil, Chile and Paraguay signed a memorandum of understanding that lays groundwork for a proposed South American Single Sky.

The agreement, signed Tuesday in Asunción, Paraguay, seeks to emulate the European Union's successful single aviation market. Its central goal is to progressively eliminate national barriers to passenger and cargo traffic, turning regional routes into operations similar to traditional domestic flights.

Authorities expect the initiative to increase the number of direct routes, boost competition and significantly reduce airfares.

According to media reports, including Paraguay's ABC and Argentina's Clarín, the agreement centers on the reciprocal expansion of the so-called freedoms of the air.

The first immediate step has been activation of bilateral agreements allowing airlines to operate commercial flights between two foreign countries without the flight originating in, ending in or passing through the airline's home country.

The talks, however, ultimately aim to open up a country's internal flight routes to outside airlines. This would represent a higher level of aviation market integration by allowing an airline from one participating country to operate domestic commercial flights within another member country.

If successfully implemented, the system would allow foreign airlines to compete directly in the domestic markets of participating countries, breaking up longstanding monopolies and boosting domestic tourism.

To avoid political delays and creating costly bureaucratic bodies, the agreement established a strict timetable. An executive working group, with Paraguay assigned overall coordination, has up to 12 months to coordinate regulatory frameworks.

The multisector technical commission's immediate tasks include harmonizing technical and operational safety regulations and establishing direct recognition of licenses for flight crews and other aviation personnel.

The group also must establish unified standards for protecting passenger rights and coordinate streamlined customs and immigration procedures at regional airports.

According to Brazilian news reports, official delegations confirmed that the agreement remains open to adding new members and said talks with Uruguay are at an advanced stage.

Copyright 2026 UPI News Corporation. All Rights Reserved.

This story was originally published July 15, 2026 at 10:36 AM.

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