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Brazil Ready to Cut Airfares Up to 80%

Gol plane in Brazilian airport Brazil's National Civil Aviation Agency, which controls commercial flights policy in the country, announced it will authorize discounts of up to 80% on plane tickets to destinations within South America.

The decision which became effective Sunday, June 1st, includes flights leaving from Brazil to any of the other twelve countries in the region: Argentina, Uruguay, Chile, Paraguay, Bolivia, Peru, Ecuador, Colombia, Venezuela, Guyana, French Guyana and Suriname.

According to the agency, the move is the first step in the strategy to make ticket fares more flexible on all international flights leaving from the country, and the intention in the near future is to extend the policy to destinations in North America, Europe, Asia, Africa and Oceania.

The first stage of the policy implementation started last March when the government agency authorized air companies to offer discounts of 30 to 50%. Brazilian airlines welcomed the decision, but they did not announce any immediate change in the current ticket pricing policy.

Gol Linhas Aereas, one of the main airlines in the country, praised the decision saying it benefits mainly Brazilian passengers.

Meanwhile, its main competitor in the local market, TAM Linhas Aereas, stated in an official release that for the moment it will retain the current level of discounts.

Mercopress

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  • Show Comments (9)

  • João da Silva

    [quote]We have to admit that LulaÀ‚´s government is allowing Brazil to become a more competitive country, and open Brazil to other sectors such as the airline industry.[/quote]

    Please do explain about the latest scandal regarding the sale of Varig Log and also restricting the participation of foreigners in an Airline company to 20%. That is if you are reading the national newspapers.

  • Ed

    On Airline Fares
    We have to admit that LulaÀ‚´s government is allowing Brazil to become a more competitive country, and open Brazil to other sectors such as the airline industry. Such measure will benefit not only Brazil, but South America as a whole, as cheaper airline tickets means more tourism, means more competitivity between companies. We really need to start thinking of America (North, Central and South) as a new world, as planned by some of our noble noble citizens.

  • Simpleton

    tank you tank you very much
    Sure do miss my rathskellar days.

    JDS, I took a chance with your link on a lark – felt a bit naughty doing so as so much that gets sent my way from home always seems to arrive with nasty viruses. Couple new words I’ll have to go back and dig upon but other than that I found the article very clear / was able to speed read just like forrest and your playn iglsh. I even added the base site to add to my Favorites. (First time I’ve added something there since adding the Seattle Post Intellegencer’s world gold prices page a long long long time ago.)

    Forrest:DoubleDots = Both ends of one spectra. (Sorry, rarely click on smilely’s either although I’m certain an appropriate one exists – blatz)

  • JDS

    Simpleton
    Ah, I forgot to tell ya. Forrest is in https://www.brazzil.com, breathing fire 🙂

  • JDS

    Simpleton
    [quote]JDS you kind old soul, I’m certain you did not miss the telltails even if you’ve long been away from the hum and drum of forrest’s outboard. The race for the basst is on.[/quote]

    Simpleton, rest assured that Ch.c and “doubledots” are not the same!

    Talking about airlines, there is an interesting article in EstadÀƒ£o today. The link is below (I am assuming that you have a fair reading knowledge of Portuguese:

    [url]http://www.estadao.com.br/estadaodehoje/20080604/not_imp183508,0.php[/url]

    skol@ to you too 😉

  • Simpleton

    Check Records
    JDS you kind old soul, I’m certain you did not miss the telltails even if you’ve long been away from the hum and drum of forrest’s outboard. The race for the basst is on.

    ch.c(aka …,):
    “thought you were for a free market””(generated by our booming economy)”
    and
    ” I see nothing wrong . . . if it benefits the poor as well as the middle class “

    One, if I recall correctly has declared never having even visited and one (more silently stated) never having ever left. One rich / One poor. To me these two seem to be dicotomous halves of the same individual. One taking, one never giving (other than pay_u), neither having once acknowleged the other’s right to be. Twin roots to the tree of the queen of evil as puffish would have it. A world at odds. All calling for everyone to place their bets on where the tides turn first / what evil washes upon which shores.

    Ooopa, so sorry, forgot to screw the cap back on that can of aviation paint stripper. Liver damage is liver damage but best not get flying so high being on all but fumes that one has too far to fall. Skol@!

  • ..

    [quote]Lula also decides the brazilian merger telecom laws :
    http://bloomberg.com/apps/news?pid=20601086&sid=agerkjL2Z4rA&refer=latin_america
    [/quote]

    The merger between Oi/Telemar with Brasil Telecom was negotiated by the “Mother of PAC”. The merged entity will be able to so strong that it will be able to compete with TelefÀƒ´nica which is Spanish owned. The merged companies will of course be able to provide lower quality services at higher prices, thus benefiting the poor segment of our society. Remember, with all the extra money in their pockets (generated by our booming economy), this less favored segment can afford to pay higher tariffs. Other beneficiaries are the state governments that charge anywhere between 17 and 25% State taxes which can be used for other social programs.

    I see nothing wrong in lowering the quality and increasing the prices if it benefits the poor as well as the middle class 😉

  • ch.c.

    Great news !!!!!
    Everyone thought you were for a free market.
    Noooooo……your government even control the airfares tickets!!!!!!!!!

    Lula also decides the brazilian merger telecom laws :
    http://bloomberg.com/apps/news?pid=20601086&sid=agerkjL2Z4rA&refer=latin_america

    to Joao : “And look at the increase in the International airfares in terms of dollars during the past 2 years”
    Normal if the currency went down.
    Just look at your airfares prices spirals in BRL from 1998 to 2002 !!!! Simple….your fuel prices went up in BRL even if the oil price was stable. Which is not the case now….for the last 2 years….even in Euros !

  • João da Silva

    [quote]Brazil’s National Civil Aviation Agency, which controls commercial flights policy in the country, announced it will authorize discounts of up to 80% on plane tickets to destinations within South America.[/quote]

    ANAC may authorize, but it is up to the airlines to decide whether or not to give the discounts. Read the lukewarm declarations of TAM and GOL:

    [quote]Gol Linhas Aereas, one of the main airlines in the country, praised the decision saying it benefits mainly Brazilian passengers.

    Meanwhile, its main competitor in the local market, TAM Linhas Aereas, stated in an official release that for the moment it will retain the current level of discounts. [/quote]

    And look at the increase in the International airfares in terms of dollars during the past 2 years. The days of $500 round trip ticket to Miami from S.Paulo or Rio are part of BrazilÀ‚´s history!

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