Cabotage refers to the right to operate aircraft within a specific territory. Foreign operators are not allowed to conduct domestic flights in another country. For instance, an aircraft with a U.S. (N-registered) tail number cannot fly domestically within Mexico, such as from Puerto Vallarta to Cancun. However, the same aircraft can enter Mexico to pick up passengers as long as the flight departs to another country.
Cabotage rules are designed to protect domestic flights by ensuring they are operated by locally registered aircraft, thus eliminating foreign competition. As a result, all domestic flights within the United States must be operated by aircraft with N-registered tail numbers.
While private jet chartering is known for its flexibility, operators and brokers are still bound by cabotage regulations. For instance, even if there are available one-way or multi-leg flights, an aircraft registered in a different country cannot perform a domestic flight without claiming cabotage rights.
This regulation also prevents foreign entities from operating large fleets within another country, which helps maintain sovereign borders and mitigate the risk of militarization.
If a country does not have a fleet of aircraft, two scenarios are possible:
- Private flights into the country cannot perform domestic flights
- Special permission may be granted by the country’s civil aviation authority to conduct such flights
All passengers must be listed on the flight manifest for such domestic flights, and the aircraft must depart with the same passengers it arrived with – no exceptions.
International flights are more flexible. For example, an international flight can land in New York with 10 passengers and then pick up five additional passengers in Washington D.C. before returning to New York. However, it cannot fly new passengers from New York to Washington, D.C.
There are exceptions within selected countries in Europe. Flights within the European Union (EU) are exempt from the usual cabotage rules, promoting free trade and easier travel for citizens. However, this exemption does not apply to all European countries – only to those that are EU members. Countries like Switzerland, Belarus, and Kosovo, which are not part of the EU, do not enjoy this flexibility.
