What is "cabotage"

Cabotage \Cab"o*tage\, n. [F. cabotage, fr. caboter to sail along the coast; cf. Sp. cabo cape.] (Naut.) Navigation along the coast; the details of coast pilotage. [1913 Webster] ||

n. 1 The transport of goods or passengers between two points in the same country. 2 The right to engage in such transport. 3 The exclusive right of a country to control such transport.

1. n: the exclusive right of a country to control the air traffic within its borders

2. navigation in coastal waters

Cabotage is the transport of goods or passengers between two places in the same country by a transport operator from another country. It originally applied to shipping along coastal routes, port to port, but now applies to aviation, railways, and road transport as well.

Cabotage rights are the right of a company from one country to trade in another country. In aviation, it is the right to operate within the domestic borders of another country. Most countries do not permit aviation cabotage, and there are strict sanctions against it, for reasons of economic protectionism, national security, or public safety. One notable exception is the European Union, whose members all grant cabotage rights to each other.