Mexico transportation secretary Gerardo Ruiz Esparza has signed a liberalised air services agreement with US Transport Secretary Anthony Foxx, removing the restrictions on air transportation between Mexico and the US.
Called as the "landmark agreement", this pact will see more frequent flights at low fares traversing between the two countries.
This air transport agreement is a result of more than two years of negotiations led by the US Department of State with the Department of Transportation and the Department of Commerce and is expected to better the future of trade and travel between the nations.
The two governments will be able to bring the agreement into effect following internal ratification procedures in Mexico.
In a joint statement, Anthony Foxx and John Kerry said: "The new agreement will benefit US and Mexican airlines, travellers, businesses, airports and localities by allowing increased market access for passenger and cargo airlines to fly between any city in Mexico and any city in the US.
"Cargo carriers will now have expanded opportunities to provide service to new destinations that were not available under the current, more restrictive agreement."
This new agreement will not only strengthen the dynamic commercial and economic relationship between Mexico and the US, but will also facilitate the establishment of alliances between air carriers of each country.
Apart from aviation, this increase in the air carriers will also help promote economic growth in sectors like tourism and manufacturing.
The Air cargo industry is expected to receive a boost as a Mexican or US flight will be allowed to transport freight from either country to a third country.
The deal awaits approval by the Mexican Senate that is expected early next year.
According to Mexico News Daily, Mexico's carriers have a fleet of 300 planes, while US carriers have 7,500.