Wednesday, August 28, 2019

Congress may decide on this Wednesday whether or not to veto the free baggage on flights

The National Congress may examine in a session scheduled for this Wednesday (28) The veto to the proposal on the gratuity of baggage on domestic flights. The gratuity for the dispatch of up to 23 kilos of baggage on domestic flights was included – and approved – in the voting of the provisional measure that allowed foreign capital airlines in Brazil. But President Jair Bolsonaro has veed. For air sector analysts, the maintenance of the veto is considered essential for the entry of new airlines in Brazil and for the expansion of low cost companies, the so-called "low cost". Airton Pereira, Director of institutional relations of the Brazilian Association of Airlines (ABEAR), evaluates that the measure is so important that, according to him, the eventual overshoot of the veto would not only prevent the entry of new companies but would also lead companies of Low cost that have already announced operation in Brazil to give up this initiative. "The charge for baggage dispatch is essential in the low cost business model. I would say that they not only would not come to Brazil, but those who are here would go away, "he said, about the possibility for companies to be forced to dispatch luggage free of charge. The veto, however, will not be the last challenge of the airlines in the National Congress. This measure is one of the 115 propositions in analysis in the National Congress and which are considered with potential to negatively impact the sector, according to a survey made by Abear at the request of G1. Deputy defends overthrow veto In addition to the veto, the resumption of the free baggage order is also foreseen in a draft legislative decree requesting the cancellation of the regulation of the National Civil Aviation Agency (ANAC) that authorized the collection of luggage. For Congressman Eli Corrêa Filho (DEM-SP), President of the Committee on Road Traffic and transport of the House of Deputies, the change in the rule made by Anac did not reduce the price of air tickets as promised. According to the congressman, if Congress maintains the veto of President Jair Bolsonaro, he will vote on the proposal for Legislative decree to prohibit the collection of baggage. The proposal for legislative decree does not depend on the president's sanction to begin in force. This proposal has already been approved in the Federal Senate. "The consumer is being injured. So, nothing fairer than dropping a measure that was only bringing damage, "he said. He also does not believe that the change will impact the intention of other companies to enter Brazil. "The charge will not intimidate new companies," he said. Regulation For the general Director of the International Air Transport Association (Iata Brazil), Dany Oliveira, maintaining a regulatory environment aligned with world best practices is one of the great challenges of Brazil. "Countries that promote aviation, modernising regulatory and legal framework, avoiding overregulation and protectionism, have created the ideal conditions for the growth of our industry, benefiting everyone from both the social and economic side," Said. According to Oliveira, there is a great concern with the volume of bills circulating in the National Congress and that, according to him, undermine the aviation industry these projects, he said, suffocate "even more the potential of aviation in Brazil". The partner in the infrastructure area of VGP Advogados Sílvio Guidi does not believe that these actions of the National Congress prevent the entry of foreign companies in Brazil, but, according to him, can prevent the reduction of the price of the tickets. "I wouldn't say it's an impeditive, but it's a dangerous sign. We just put ourselves in the role of these agents who are analyzing the possibility of coming to Brazil. From the moment he sees that the sector suffers a political influence, of two, one: either he does not come or puts it in the price, "he said. Other projects In addition to the return of the free baggage order, the projects in the Congress monitored by the sector include discussions on the end of tariff freedom and even the installation of video camera internal circuit inside the planes. According to the Director of institutional relations of Abear, in Brazil and in the world the margins of aviation companies are very small and even projects that seem to have little impact, such as the installation of cameras, can affect the cost of operation. "Just imagine Brazil forcing the installation of cameras inside planes? All this will transform us into a country with differentiated regulation, differentiated laws, "he said. See below some projects in Congress related to the air sector: PL 4804/2009: Proposes to restrict the application of the tariff freedom regime in the provision of regular air services; PL 1458/2015: It deals with the mandatory installation of video camera internal circuit, as mandatory safety equipment in aircraft; PL 2734/2019: Makes the free "web-check-in" service mandatory; PDC 49/2015: Changes the air ticket reimbursement rules purchased at a promotional rate; PDC 578/2016: Prohibits the collection of checked baggage.
G1 - 27/08/2019 News Item translated automatically
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