BRASILIA (Reuters) – Brazil is determined to lure airways to run domestic flights in Latin America’s biggest aviation marketplace, and is using meetings with at minimum three carriers, a senior authorities formal advised Reuters.
“We are going to communicate with Jet Blue , we are going to speak with Volaris, a Mexican team … we are likely to communicate with Sky Airline, which is Chilean,” Ronei Glanzmann, Brazil’s civil aviation secretary, told Reuters on the sidelines of the ALTA Airline Leaders Discussion board, an marketplace convention.
“These are conversations to introduce Brazil to them, they do not indicate that the airlines are saying that they will appear in this article,” he added.
Glanzmann mentioned the conferences with Volaris and JetBlue Airways Corp (O:) will just take put on Monday.
A agent for Sky mentioned they had canceled their participation in the ALTA conference due to the civil unrest in Chile, but declined to comment on having a conference with the Brazilian authorities. Jet Blue and Volaris did not right away react to a ask for for remark.
Brazil’s authorities has not long ago begun a thrust to open its aviation market place, the biggest in Latin The us. Suitable-wing president Jair Bolsonaro has allowed overseas carriers to established up domestic carriers in the place.
Currently, Brazil’s domestic air vacation market is highly concentrated amongst 3 airways. Until finally earlier this calendar year, there was a fourth participant, Avianca Brasil, but the airline stopped operations in May perhaps just after filing for individual bankruptcy operations late last calendar year, highlighting the high threat and volatility of working in Brazil.
Reaction to Brazil’s liberalization been sluggish, but currently Spanish airline group Globalia has declared its intention to work a domestic airline in Brazil. But Glanzmann hopes many others will too.
His technique, he reported, requires airlines dipping their toes in the Brazilian industry first by running intercontinental flights.
“We are doing the job to start with with international routes, but we are currently operating so that those people functions will turn out to be domestic operations in the Brazilian marketplace,” Glanzmann said.
In the earlier year, four foreign reduced cost airlines have started operating worldwide flights to Brazil: JetSMART, which belongs to Indigo Associates, Sky Airline, Norwegian Air Shuttle (OL:) and Argentina’s Flybondi.
However, some market watchers are skeptical that anyone will endeavor to enter Brazil’s domestic current market anytime before long.
“We you should not see something shifting in the limited term pertaining to a new small price airline running domestically,” said Eduardo Sanovicz, who heads ABEAR, an industry group that represents Brazil’s two greatest airways. “For a enterprise to begin traveling in Brazil, they will want to know that they will have the similar fees as we do.”
Brazil’s carriers have long complained about high fees of running in Brazil, especially value-included taxes on gasoline that can be as superior as 25%.