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.
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.
