Argentina’s government has cleared Chile-based Latam Airlines to operate domestic flights across the country. It represents a policy shift that underscores Argentinian President Javier Milei’s push to liberalize the aviation sector and attract foreign competition.
Published last Friday in Argentina’s government Official Gazette, the Transport Secretariat authorizes Latam to fly any internal route it chooses using aircraft of its own fleet, without the obligation to set up an Argentine subsidiary. The measure is a cornerstone of Milei’s “Open Skies” strategy, designed to roll back regulations that previously shielded local carriers from outside rivals.
The new rules grant Latam so-called “ninth freedom” traffic rights, an extremely rare privilege, also called “full cabotage”. It allows a foreign airline to operate flights entirely within Argentina. This gives the Chilean-Brazilian group the ability to carry passengers and cargo on both scheduled and charter services, with no caps on frequencies, destinations, or aircraft size.
The regulations also provide for a key “fifth freedom” operation linking Santiago de Chile, Buenos Aires, and Rio de Janeiro. Under this arrangement, Latam may pick up passengers in Argentina and transport them onward to Brazil, a move expected to strengthen Buenos Aires’ role in regional air networks and improve connectivity between South America’s major hubs.
No immediate start
Officials said Latam has already complied with all legal and technical conditions set out in bilateral air service agreements signed between 1996 and 2024. As a result, the airline will not need to seek separate government authorization for each new domestic route, as long as it meets safety and operational requirements.
Latam withdrew from Argentina in 2020, shutting down its local unit during the pandemic after years of losses. At the time, the company pointed to a hostile regulatory environment, high operating costs, and rigid labor rules, despite holding about 20% of the domestic market.
In a statement, Latam acknowledged the new regulatory framework but made clear that a return to Argentina’s domestic market is not imminent. Any relaunch, the airline said, will depend on economic conditions and the sustainability of operations under the new rules.
Aviation analysts say the decision could reshape competition, putting pressure on established players such as state-owned Aerolíneas Argentinas and low-cost carriers Flybondi and Jetsmart. Supporters argue the move could lead to lower fares and more route options for travelers, while critics warn of potential labor disputes and financial strain on local airlines.
For Milei’s administration, the authorization is a symbolic break with decades of protectionism in air transport.
