South American aviation authorities seek to progressively eliminate national barriers to passenger and cargo traffic, turning regional routes into operations similar to traditional domestic flights. File Photo by Mario Tuiz/EPA

July 15 (UPI) -- Aviation authorities from Argentina, Brazil, Chile and Paraguay signed a memorandum of understanding that lays groundwork for a proposed South American Single Sky.

The agreement, signed Tuesday in Asunción, Paraguay, seeks to emulate the European Union's successful single aviation market. Its central goal is to progressively eliminate national barriers to passenger and cargo traffic, turning regional routes into operations similar to traditional domestic flights.

Authorities expect the initiative to increase the number of direct routes, boost competition and significantly reduce airfares.

According to media reports, including Paraguay's ABC and Argentina's Clarín, the agreement centers on the reciprocal expansion of the so-called freedoms of the air.