Brazil needs more airlines for ticket prices to drop, says ANAC president
The president of Brazil's ANAC states that ticket prices can only decrease with the entry of more airlines into the market.
The president of the National Civil Aviation Agency (ANAC), Tiago Faierstein, argued that increasing the number of airlines operating in Brazil is crucial to lowering airfare prices, which have nearly doubled inflation rates in the previous year. He highlighted that the recent tax reform approved by Congress poses challenges for new airlines considering entry into the market, as it will increase operational costs. Furthermore, he pointed out that the high volume of judicial processes regarding delays and cancellations inhibits the growth of competition within the aviation sector.
To address these concerns, ANAC is preparing a revision of compensation rules related to flight delays and cancellations. As part of this initiative, an online system will be established specifically for judges, enabling them to access real-time operational data, including flight delays due to weather conditions. This new measure aims to streamline the judicial processes surrounding the aviation industry and provide transparency, thereby potentially reducing frivolous lawsuits that hinder the entry of new airlines into the Brazilian market.
The proposed changes are set to take effect in March and are part of ANAC's broader strategy to enhance competition in the Brazilian aviation sector. By encouraging more airlines to enter the market, the agency believes that there will be a significant increase in available seats, which could lead to lower ticket prices for consumers. This reform is part of ongoing efforts to create a more competitive environment that benefits travelers while also incentivizing new investments in the airline industry.