Cabotage and Aviation Rules Relating to Cabotage on International Flights

The overall purpose of Cabotage rules are to prohibit foreign aircraft from one country traveling into another country
and picking up foreign nationals or citizens of the other foreign country and providing transportation to and between
points within that foreign country.
Cabotage is defined as a non-remunerated not-for-hire flight between two points within a foreign country, carrying
residents whose travel begins and ends in that country. Cabotage in the traditional sense; i.e., for hire, is almost
universally prohibited.
The Standard Dictionary of the English language defines Cabotage (for flight purposes) as "air transport of
passengers and goods within the same national territory." The definition adopted by International Civil Aviation
Organization [ICAO] at the Chicago Convention is, "Each state shall have the right to refuse permission to the aircraft
of other contracting states to take on its territory passengers, mail, and cargo destined for another point within its
territory.
Private pilots and commercial operators should understand "Cabotage," formally defined as "air transport of
passengers and goods within the same national territory." The definition adopted by ICAO at the Chicago Convention
is, "Each state shall have the right to refuse permission to the aircraft of other contracting states to take on its territory
passengers, mail, and cargo destined for another point within its territory." Although Cabotage rules are different in
various countries and usually incorporate the term "for hire," some countries do not allow even non-revenue
passengers to be carried by a foreign aircraft within their boundaries. The restrictions range from no restrictions as in
Italy, to not allowed, as in Pakistan. The fines for Cabotage can be extremely high; therefore, pilots and flight
departments should be absolutely sure of a country's Cabotage rules before carrying passengers. The Cabotage
requirements and restrictions of individual countries are listed in the corporate aircraft restraints section for each
country in the IFIM. Refer to Chapter II, Article 7 of the Chicago Convention.
In the United States any required exemption for approval of any foreign carrier or aircraft, (private, corporate or
other), such approval is issued by the U.S. Department of Transportation under 49 U.S.C. 49109(g).
As defined by the Department of Transportation (DOT) Office of Legal Counsel, a senior attorney states Airline
Cabotage is the carriage of air traffic that originates and terminates within the boundaries of a given country by an air
carrier of another country. Rights to such traffic are usually entirely denied or severely restricted. Under 49 U.S.C.
section 40109(g), the DOT may authorize a foreign air carrier to carry commercial traffic between U.S. points (i.e.,
cabotage traffic) under limited circumstances. Specifically, the DOT must find that the authority is required in the
public interest; that because of an emergency created by unusual circumstances not arising in the normal course of
business the traffic cannot be accommodated by U.S. carriers holding certificates under 49 U.S.C. section 41102; that
all possible efforts have been made to place the traffic on U.S. carriers; and that the transportation is necessary to
avoid undue hardship to the traffic involved (an additional required finding, concerning emergency transportation
during labor disputes, is not relevant here). For further information on interpretation of this requirement, contact the
Office of International Law, Office of General Counsel, 202-366-2972, international.law@dot.gov, 400 7th Street
SW, Washington, DC 20590.
The Customs authorities of foreign countries, including Customs & Border Protection in the U.S. will not permit
Cabotage and under the Customs Regulations have their own enforcement rules on Cabotage and in most actions as
in Europe (EU) and Canada, aircraft can be seized if it is determined Cabotage violations have occurred. An example
in Canada Customs rules is under no circumstances may a foreign non-tax-paid aircraft enter Canada for the sole
purpose of carrying passengers or goods point-to-point in Canada.
Cabotage rules in all foreign countries are not all or only aviation related, but are revenue in general and various
other Government Agencies regulations apply. Commercial transportation is not limited to airlines or charter
companies charging for transportation services. But can include flights of any kind on any aircraft which transport
persons, cargo or virtually anything for the commercial good of an industry or business.
February 26, 2008

Cabotage is the transport of goods or passengers between two points in the same country by an aircraft registered in
another country. The application of this regulation varies from country to country and changes from time to time.
Penalties for cabotage violations range from fines, to payment of all applicable duties and taxes, to seizure of aircraft.
As best practice, business jet operators should routinely verify cabotage restrictions before all international flights.
The following are some examples of cabotage regulations and how to avoid issues arising from them:

1. Cabotage Regulations in the European Union (E.U.)

To transport E.U. nationals within the E.U., private non-revenue operators have the option of importing their aircraft.
However, the expenses to do this have changed from a standard nominal fee to paying a fee equal to a percentage of
the value of the aircraft. For charter (non-scheduled commercial) flights, your landing permit gives you permission to
operate the approved schedule. The U.K., France, Germany, and Italy have been more stringent on application of
cabotage for charter (non-scheduled commercial) aircraft and may deny permits (at the discretion of the appropriate
Civil Aviation Authority [CAA]).

2. Cabotage Regulations in Africa

Cabotage regulations and enforcement vary by country. Cabotage is an issue in South Africa, and private nonrevenue operators should carry a letter of declaration from the owner to prove the flight is not for hire. Landing
permits are required for charter (non-scheduled commercial) operations, with crew and passenger lists required per
flight leg. Cabotage is generally prohibited in Mozambique.

3. Cabotage Regulations in the Middle East

Cabotage regulations vary throughout the region. In Kuwait, cabotage is strictly prohibited. On the other hand, there
are currently no cabotage issues in Saudi Arabia.

4. Cabotage Regulations in Asia

China does not permit cabotage, and the CAA restrictions apply to both private non-revenue and charter (nonscheduled commercial) flights. India lacks clear regulations on cabotage. There are generally no problems picking up
and flying Indian nationals within the country, but this may change at a moments notice. For this reason, we
recommend that you speak to your 3rd-party provider about cabotage restrictions for every flight.

5. Cabotage Regulations in Australia

Cabotage is only an issue for charter (non-scheduled commercial) operators. Permission for cabotage must be
requested through CAA Australia, and this is done via the landing-permit process.

6. Cabotage Regulations in Central and Latin America

Each country in Latin America has its own cabotage restrictions. For example, in Mexico, private non-revenue
operators must carry a letter on company letterhead explaining the relationship between the passengers and the
company. Mexico has very stringent cabotage regulations and only allows charter (non-scheduled commercial)
operators to make one stop within the country. Exceptions include a technical fuel stop or a mandated stop
in Cozumel (MMCZ) or Tapachula (MMTP) when arriving from the south or the Caribbean. On the other hand, Brazil
only subjects scheduled commercial operators to cabotage regulations.

7. Cabotage Regulations in North America

Cabotage rules in Canada require special attention. Non-Canadian registered charter operators are prohibited from
carrying local traffic regardless of nationality between two points in Canada. The only exception to the rule for

U.S. operators is if passengers originated from a departure point outside of Canada and are carried or dropped off in
Canada. In that case, they will be allowed to proceed within Canada, but they cannot pick up anyone unless the last
stop is departing outside of Canada. Contact your 3rd-party provider for information on other aircraft-operator
nationalities.
There are no cabotage restrictions for private non-revenue operations as long as the owner, a guest of the owner, or
employees are onboard and arent paying for the flight.

Conclusion
Its the exclusive right of a country to control use of its airspace. Whether you use a 3rd-party provider or do the
research on your own, it is important to know the rules related to cabotage in all regions youre operating to.

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