Air sector in Brazil needs more than foreign capital to take off

With a territory of more than 8.5 million km² and Protagonism in South America, Brazil could take much better advantage of this capacity to increase the air sector and become a world reference. In addition to the discussion of foreign capital in the sector, other measures are necessary for the country to reach its full potential. The evaluation is of the Director General and CEO of the International Association of Air Transport (Iata), Alexandre de Juniac. The executive, who was recently in Brazil, said that aviation currently contributes about US $18.8 billion to the Brazilian annual GDP and generates more than 800,000 jobs in the country. For him, this figure could be enlarged if some measures were more assertive for the sustainable development of the sector. "The largest aviation market in Latin America has a great potential for growth, mainly in terms of domestic connectivity and diversification of international connections," said the executive. For him, in addition to opening the market for foreign capital, other actions are also essential. The first of these, he says, is to eliminate the import parity pricing policy for aviation fuel. "Although more than 90% of the aviation fuel consumed in Brazil is produced locally, due to local regulatory policy, the price is calculated as if imported from the Gulf of Mexico. Moreover, with the lack of internal competition in the fuel market, the additional cost for airlines reaches US $300 million, which ultimately affects the price of airline tickets, "he says. In addition, it cites the expansion of a tariff freedom policy, allowing airlines to meet the growing demand of consumers. "Consumers deserve options and airlines are responding to this demand offering transparency in custom pricing and services. The approval of resolution 400 in 2016 in Brazil allowed airlines to meet this demand. The restriction of this freedom would likely cause increased costs and lower options for consumers. " As far as consumer law is concerned, Brazil also needs to move forward. For this, Juniac cites a greater alignment with global standards of air liability. "Especially on issues such as delays and flight cancellations for reasons of force majeure." From the point of view of the airports, he cites the continuity of the concession process with modernization of contracts and adaptation to the reality of the country. During his trip to Brazil Juniac he had meetings with members of the Government and state of the sector. "If the government can work with the sector in formulating policies that support these fundamental changes, the improvement in connectivity will give the necessary impetus to the prospects for the economy of Brazil," he said. According to estimates from the entity, the global demand for air transport will double in the next 20 years. For Brazil the projection is that if there is development of the sector the companies employ 3 million to 2037, with the contribution of US $88 billion to the GDP of the country and almost 500 million of passengers per year. "I say aviation is the business of freedom because it allows people to lead a better life by connecting families and friends. Aviation is a catalyst for economic, social and educational growth, "concludes the executive.