Cabotage

Cabotage

What is Cabotage?

Cabotage Rights in the Aviation Industry

Cabotage refers to the transport of passengers or cargo between two points within the same country by a foreign carrier.

Cabotage refers to transporting goods or passengers between two places in the same country by a transport operator from another country. A foreign airline cannot operate a domestic flight within a country.

For example, an Austrian airline cannot operate a flight that originates and terminates within the UK or Switzerland. This restriction is in place in many countries to protect domestic airlines and markets.

• Restrictions and Implications: Most countries restrict cabotage to protect their domestic airlines and markets. For example, a foreign airline typically cannot operate a flight that both originates and terminates within another country.
• Economic and Regulatory Aspects: These restrictions are part of broader economic and regulatory policies, affecting international aviation market dynamics and competition.
• Exceptions and Agreements: Some regional agreements, like those in the European Union, allow cabotage under specific conditions.

Cabotage regulations play a significant role in the international aviation industry, impacting how airlines operate and compete in global markets.Cabotage refers to the transport of passengers or cargo between two points within the same country by a foreign carrier.