Meaning

noun the exclusive right of a country to control the air traffic within its borders

noun navigation in coastal waters

originBorrowed from French cabotage (“coasting trade”), from caboter (“to travel by the coast”). It originally (16th c.) referred to restrictions allowing only French ships to trade or transport between French ports. Other countries adopted this concept and extended it to land and air travel.

Etymology from Wiktionary, CC BY-SA 3.0