Brazil Deregulates Air Fares to South America

Brazilian airline Gol As of this Monday, September 1st, the Brazilian government will no longer regulate air fares from Brazil to the rest of South America. This should represent a significant reduction in prices, according to a press release from Brazil's National Civil Aviation Agency, ANAC.

"The fare liberalization," will totally change the workings of the air industry and ends the rebate limits which existed in Brazil until last February.

"We're hopeful that the increased competition (through discounts and rebates) stimulates the fall in final prices and benefits consumers, particularly in low season," added ANAC.

Until last February flight fares from Brazil to the rest of South America were limited to a maximum discount of 30% which as of March was increased to 50% and starting September 1st will be totally up to the air carriers to decide according to their marketing policies.

Because of the existing regulations and the discount policy at the time, before March, airlines carrying passengers other from South American countries to Brazil, could offer fares 50% cheaper than in the opposite direction.

With this decision Brazil joins the growing number of South American countries that already have an open-fare policy for regional flights, according to ANAC.

The open fares system will help "correct distortions" and should lead to a sustained fall in prices for flights originating in Brazil.

ANAC also said that the number of flights from Brazil to the rest of South America is rapidly growing partly because of several agreements signed recently with neighboring countries.

Last year two million passengers flew from Brazil to other South American destinations which represented a 20.5% increase over 2006, relegating Europe to the second most important market.

Mercopress

Tags:

  • Show Comments (1)

  • ch.c.

    Hmmmmm Hmmmmmm !!!!!
    somewhat funny that your government were regulating airlines fares !
    and they are still regulating air fares for outside South America !

    What a backward country ! Bin the Crook just want to control EVERYTHING !!!!!!
    JUST AS DICTATORS LIKE !

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

After 15 Years of Talks, 2015 Could See a Mercosur-EU’s Free Trade Agreement

Once the EU and Mercosur exchange their proposals for a free trade agreement, negotiations ...

Hungry for change in Brazil

Lula’s transformation, from radical socialist to international statesman, has drawn lazy comparisons with Tony ...

Brazilian Bus Maker Marcopolo Gets a US$ 30 Million Facelift

Marcopolo, the Brazilian bus and bus body maker, wants to invest 50 million reais ...

Brazil Trade Mission to Visit Ten Arab Countries

The Brazilian minister of Foreign Relations, Celso Amorim, will make a tour through the ...

Brazil’s Plans to Keep Young Farmers in the Country

Brazil has 6 million young people, 18-24 years old, working in the countryside. 1.8 ...

Personal Loans at 59% Interest Rate: The Lowest Brazil Has Seen in 12 Years

Even though they remain high, as the head of the Economic Department of Brazil’s Central ...

Over Half of Brazil’s New Cars Run on Gas, Ethanol or a Mix of Both

Demand for ethanol made from sugar cane is booming in Brazil, where it is ...

Women Migrate More than Men in Brazil

According to the most recent Population Census, published by the Brazilian Institute of Geography ...

Alchemy, a Brazilian Jewel Maker with International Ambitions

Alchemy, jewel and semi jewel manufacturer, based in the Brazilian city of Limeira, in ...

Ricardo Cravo Albin's book on MPB

Brazilian Popular Music, a Bird of a Thousand Voices

A few months ago while performing in the New York area, I encountered an ...