Negotiations for an ‘open skies’ agreement between the United States and the Dominican Republic have been finalized. An open skies agreement is a bilateral arrangement that liberalizes rules for international aviation markets and minimizes government intervention. Such contracts allow any number of airlines from participating countries to fly between them without restrictions on capacity, frequency, or pricing.
The U.S.-Dominican Republic Agreement
The new agreement, which ended 25 years of negotiations, will replace the existing air transport system in place since 1986. Under the current arrangement, Dominican carriers are limited to scheduled services from the country to New York, Miami, and two additional points in the mainland U.S. selected by the Dominican government. Aviation Week reports that Jose Fernandez, U.S. Under Secretary of State for Economic Growth, Energy, and the Environment, highlighted the significance of the agreement:
“Our citizens will welcome the benefits that will accrue from greater competition in the bilateral aviation market. In concluding this pro-growth, pro-competition, and pro-consumer agreement, the Dominican Republic would join a community of partners committed to maintaining an open and modern air services market.”
What Are The Benefits For Travelers?
Twelve different airlines fly nonstop from the United States to the Dominican Republic. Regarding seat capacity, JetBlue Airways is in first place with 36.6%. Next is American Airlines with 18%, Delta Air Lines with 11.4%, and United Airlines with 11.3%. As a result of the new agreement, Dominican airlines will have more chances to join the American market, eventually leading to a more even distribution of market share between the two countries.
Travelers can anticipate several benefits from the open skies pact. The new policy allows Dominican airlines to fly to the entire U.S., opening the market to more competitive options. As a result of more frequent flights between the two countries, plane ticket costs are likely to go down. Furthermore, new options will be available to Dominican travelers, including nonstop flights to various U.S. cities outside the typical New York and Florida itineraries. Service quality should rise as more airlines join the market.
