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:

Ads

You May Also Like

Brazil’s Harvest to Shrink Due to Drought and Freezing

Brazil’s 2005 agricultural harvest may reach 116,341 tons. This is the fourth estimate for ...

Lula Boasts Brazil’s Trade with South America Is as Big as the One with the US & EU

Talking to an audience of workers and members of one of Brazil’s biggest labor ...

Ethanol, Sugar, Soy and Coffee Help Boost Brazil Exports to Arab Countries

Products in the sugar and alcohol complex, meats, soy, coffee and tobacco. These were ...

Brazil’s House Speaker Rebuts Charges of Corruption and Counterattacks

The president of Brazil’s Chamber of Deputies, Severino Cavalcanti (PP party from Pernambuco state), ...

Brazil Worried International NGO’s Want to Take Over the Amazon

The 10th National Conference of State Legislatures, which began in Brazil Wednesday, May 17, and ...

Brazil’s Vehicle Production Falls 3.7% While Coffee Exports Rise 17%

Compared with December of last year, Brazil’s vehicle production dropped by 3.7% in January. ...

Brazil’s Sí³crates in England Looking for Past Soccer Magic

It’s the most English of scenes at Garforth Town Football Club in West Yorkshire. ...

Poetry

— This hole in which you are, measured in palms, is the smallest share ...

War: Brazil, I Beg to Differ

The ‘warrior race’ theory of North American genetics presupposes that we all love war. ...

Let Senna Rest in Peace, Brazil!

It is typical of the natives of São Paulo, Brazil, that they should make ...