An aerial view of Ecuador's capital city, Quito, and the runway at Mariscal Sucre International Airport.
Ecuador’s decision to recognize air operator certificates (AOCs) from other countries in the region is expected to boost competition in airfares, improve operational efficiency and enhance connectivity, according to the Latin American and Caribbean Air Transport Association (ALTA).
The move follows a resolution by the Ecuadorian Directorate General of Civil Aviation (DGAC) to adopt mutual recognition of AOCs for airlines from Andean countries that meet International Civil Aviation Organization (ICAO) standards. By reducing authorization times and certification costs, the measure aims to facilitate the entry of new airlines and encourage expansion among existing operators.
"Currently, international air transport in Latin America and the Caribbean faces regulatory barriers that hinder its growth. One of the key challenges is the requirement for foreign airlines to undergo local AOC certification processes, despite all countries in the region adhering to ICAO standards,” says the outgoing CEO of ALTA, José Ricardo Botelho, who is set to be replaced by IATA’s Americas Regional Vice President Peter Cerda.
“These regulatory redundancies increase bureaucracy and operational costs, making it difficult for the sector to remain competitive and expand. By adopting mutual recognition of AOCs, Ecuador is taking a significant step forward.”
Under the new framework, the DGAC will recognize AOCs issued by other civil aviation authorities within a maximum period of one month, provided they comply with ICAO standards. Botelho says this approach will significantly reduce authorization times and certification costs.
"This is a crucial measure in a region where connectivity remains limited, with an average of only 0.64 trips per capita,” he adds. “By facilitating the entry of new airlines and the expansion of operations, Ecuador is fostering a broader supply of flights, which could lead to more competitive fares and improved access to air travel.”
According to ALTA, the aviation sector in Ecuador supports more than 330,000 jobs and contributes over $4.6 billion annually to the national economy, factoring in direct, indirect, induced and catalytic effects.
The move is the latest measure introduced by Ecuador’s government to further liberalize its air transport sector, following on from an open skies agreement with the U.S. that came into effect in late 2022. This allows for the expansion of passenger and cargo flights between the two countries.
According to data from OAG Schedules Analyser, Colombia is Ecuador’s largest international market in March 2025, accounting for 28.4% of all international departure seats. Panama follows with a 20.8% share, while the U.S. ranks third at 19%.
Colombia’s Avianca is currently the leading airline in Ecuador, holding a 37.8% share of domestic and international departure seats. LATAM Airlines Group ranks second with 32%, followed by Copa Airlines at 7.3%. The government is working to increase the availability of low-cost airline seats, which currently account for just 2% of total capacity in March 2025.
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