Cabotage

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Cabotage is the transport of goods or passengers between two points in the same country. Originally starting with shipping, it now also covers aviation and road transport.

The American Heritage Dictionary of the English Language, Fourth Edition defines Cabotage as:

  1. Trade or navigation in coastal waters.
  2. The exclusive right of a country to operate the air traffic within its territory.

Its regulation restricting it to carriers from that country is a form of protectionism and alleged to lead to economic and environment inefficiency; justifications used include national security and the need to regulate issues such as safety.

Also commonly used as part of the term Cabotage rights, meaning the right of a company from one country to trade in another country. In aviation terms, it is the right to operate within the domestic borders of another country. Most countries do not permit Cabotage by foreigners, although this is changing within Europe for member states of the European community.[citation needed]

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