Negotiations have been completed on an Open Skies Agreement between the United States and the Dominican Republic. An Open Skies Agreement is a bilateral agreement that liberalizes the rules governing international air travel and minimizes government interference. Such agreements allow any number of airlines from the countries involved to fly between them without restrictions on capacity, frequency or price.
The agreement between the United States and the Dominican Republic
The new agreement, which ended 25 years of negotiations, will replace the air transport system that has been in place since 1986. Under the current arrangement, Dominican airlines are limited to scheduled flights from the country to New York, Miami and two other destinations on the mainland United States selected by the Dominican government. Aviation Week reports that Jose Fernandez, U.S. Undersecretary of State for Economic Growth, Energy and the Environment, emphasized the importance of the agreement:
“Our citizens will welcome the benefits that come from increased competition in the bilateral aviation market. By concluding this pro-growth, pro-competitive and pro-consumer agreement, the Dominican Republic would join a community of partners committed to maintaining an open and modern aviation market.”
What are the benefits for travelers?
Twelve different airlines fly nonstop from the United States to the Dominican Republic. In terms of seat capacity, JetBlue Airways ranks first with 36.6%, followed by American Airlines with 18%, Delta Air Lines with 11.4% and United Airlines with 11.3%. The new agreement will give Dominican airlines a better chance of entering the American market, which will ultimately lead to a more even distribution of market share between the two countries.
Travelers can envision several benefits of the Open Skies agreement. The new arrangement allows Dominican airlines to fly throughout the U.S., opening the market to more competitive options. Due to more frequent flights between the two countries, airline ticket prices will likely drop. Additionally, Dominican travelers will have new options available, including nonstop flights to various U.S. cities outside of the typical travel routes to New York and Florida. The quality of service is likely to increase as more airlines enter the market.
