Recently concluding an agreement, the United States and Brazil have arranged to increase the in passenger flights between the two countries up by nearly 50 percent. In addition, the agreement also eliminates the existing restrictions on the number of airlines permitted to provide air services between the two countries. The agreement was made by Mary E. Peters, U.S. Secretary of Transportation.

Secretary Peters noted, "This agreement will help air carriers meet the growing demand for passenger and cargo services between the United States and Brazil. Now more than ever, it is crucial that we give U.S. carriers every possible opportunity to compete and succeed wherever passengers want to fly."

Enabled by the agreement, there is no limit to the number of flights that can be operated between the two countries; whereas, earlier only four carriers were allowed from either side. The agreement will be effected in four gradual phases between July 2008 and October 2010. According to secretary peters, the agreement will succeed in increasing the total number of carriers operated between the two countries from 105 to 154, for both the countries.

Over and above, the agreement will also enable the expansion of cargo services between these countries. With immediate effect the total number of cargos operated between the two countries is likely to go up from 24 to 35. By the year 2010, this will go up to 42. Also, the cargo charter flights will increase from 750 to 1,000 per year with immediate effect and to 1,250 by 2010.