Benefits of encouraging cabotage competition in commercial aviation

More airlines competing for passengers' business in Mexico would mean more seats, cheaper fares, and more options for air travelers.

Benefits of encouraging cabotage competition in commercial aviation
Reasons why encouraging rivalry via cabotage in commercial air travel is beneficial. Photo by Josue Isai Ramos Figueroa / Unsplash

Many people predicted that Mexico's decision to sign the North American Free Trade Agreement (NAFTA) with the United States and Canada in 1992 would be disastrous. Some have claimed that the agreement was completely irresponsible because American and Canadian goods would introduce so much competition into the Mexican economy once they arrived that Mexican producers would be unable to compete.

To put it another way, there was an excessive fear of competition, especially global competition. However, the outcome was not disastrous; on the contrary, the Mexican industry was strengthened as a result of the competition brought about by NAFTA, and consumers were the main winners.

Many businesses have grown more than ever as a result of this competition, specifically because they were forced to consolidate and improve for their customers. Today, Mexico is the United States' top trading partner and trading partner with Canada and China.

A new opportunity to compete: Cabotage

Thirty years later, with the possibility of allowing so-called "cabotage," or foreign airlines to provide domestic services within the national territory, the fear of competition in commercial aviation is resurfacing.

Do you think there is something wrong with that? Let's see, is there anything wrong with fostering the conditions that encourage businesses to work harder to better meet consumer demands for price, quality, and service? Of course not, and competition is the only way to create these incentives.

According to experts, competition will lead to increased supply, better services, lower prices, and more user choice. Nationalism, which is always bad, must be abandoned because it causes wars and conflicts, whereas free trade fosters cooperation, competition, and better user service.

As a result, experts concur that cabotage will boost domestic business, with the passenger emerging as the clear winner. As a result, there is no reason to fear incompetence; on the contrary, there is no reason to fear competition.