Airport Incentives in Ecuador: A Strategic Opportunity for New International Routes
Ecuador has developed an incentive scheme aimed at attracting new airlines and promoting international connectivity from both publicly and privately managed airports. In a context where cost reduction and efficient operational expansion are key to airline growth, these incentives serve as a valuable tool.
What types of incentives are offered?
The incentive plan implemented by the General Directorate of Civil Aviation (DGAC) applies to new international routes operating to and from non-concessioned airports and offers significant benefits:
- 40% Discount on Fuel Prices
Under Executive Decree No. 204, a 40% discount is granted on the terminal sale price of aviation fuel for routes operating from airports managed by the DGAC or delegated to municipal governments, provided they have not been concessioned. - Reduction in Air Travel Fees
Through regulations published in the Official Register, two key fees for international passenger traffic have been reduced:
- EcoDelta: from USD 50 to USD 5
- Ecuador Potencia Turística: from USD 10 to USD 1
These reductions apply to new international airlines or to new routes operated by already authorized carriers.
- Exemption from the Currency Outflow Tax (ISD)
Executive Decree No. 182 establishes a 0% ISD rate for foreign airlines officially designated to operate international passenger or cargo services in Ecuador. This measure enhances financial efficiency and the profitability of international operations.
It is worth noting that some private concessionaires have implemented similar incentives to increase operations.
Requirements to Access the Benefits
To be eligible, airlines must meet the following conditions:
- Hold a Regular Operating Permit and an Air Operator Certificate (AOC) issued by the DGAC.
- Operate a route that includes an airport managed by the DGAC or a municipal authority, without concession to private operators.
- Commit to maintaining operations for the minimum period required by the incentive plan.
Strategic Considerations
These incentives offer airlines the opportunity to:
- Explore new markets with reduced financial risk.
- Lower key operating costs.
- Improve their competitive position compared to other carriers.
- Strengthen their regional route network under favorable conditions.
Specialized Legal Advice to Maximize These Benefits
At CorralRosales, we have a specialized aviation law practice that advises both passenger and cargo airlines on all legal aspects of their operations in Ecuador. Our team has extensive experience in:
- Managing permits and regulatory processes before the DGAC.
- Implementing new routes and conducting operational feasibility analyses.
- Structuring and negotiating aviation and commercial contracts.
- Leasing, purchasing, and financing aircraft.
We support our clients from initial planning through to operational execution, ensuring regulatory compliance and maximizing the available benefits.
For more information on how your airline can access these incentives, contact us.
Verónica Olivo
Associate at CorralRosales
volivo@corralrosales.com