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Uruguay January 2024 Jurisdictional Update

Dear all,

I would like to inform you that today, the Official Gazette published decree 15/024 (attached). This decree updates aeronautical regulations, particularly in relation to the procedures and regulations for air transport services, which were previously governed by decree 39/977.

In general, this new regulation is positive, as it moves in the right direction by removing certain restrictions for the authorization of new operators. Requirements such as national and foreign guarantees and the minimum national capital for Uruguayan companies have been eliminated.

Additionally, there is an attempt to facilitate the establishment of subsidiaries by foreign operators in Uruguay (Art. 26), although the practical implementation of this option remains to be seen.

Below is a brief summary of the main aspects of the decree:

**Positive Aspects:**

1. Elimination of the requirement for the constitution of guarantees for both national and foreign operators.

2. Removal of the limitation on the number of annual flights for non-regular accidental services.

3. Specification of requirements for the application for permits for non-regular accidental services.

4. Attempt to avoid duplicating regulations for commercial agents regulated by the Ministry of Tourism.

5. In the case of “provisional authorization,” removal of the requirement to be up to date with the payment of airport services and flight protection.

6. Establishment of a special regime for the “delegation of certain exploitation tasks” to other national or foreign companies, including authorization to have foreign personnel at the beginning of exploitation for a maximum of two years and the use of foreign-registered aircraft.

7. Elimination of requirements for minimum national capital.

**Negative Aspects:**

1. In non-regular accidental services, there appears to be a requirement for AOCR.

2. The opportunity was not seized to eliminate registration, approval, and tariff homologation requirements.

   – These requirements are still included in the authorization/concession process.

   – A new regime of tariff-related administrative violations is established, including the application, publication, and promotion of tariffs without homologation or registration, failure to provide information to the aeronautical authority, and obstruction of authority control.

We appreciate your attention and remain available for any further inquiries.

Sincerely,

Gonzalo Yelpo

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