Business

Brazilian government tries to attract 40 foreign airlines to the country

The goal is to make the market more competitive and decrease prices

The Brazilian Government tries to attract foreign airlines to the country
The Brazilian Government tries to attract foreign airlines to the country. Photo: ShutterStock
  • The government is taking benefit of a new law that allows 100% foreign companies to enter the Brazilian domestic flights market;
  • Currently, there are only three companies operating in this segment in the country: Azul, Gol, and Latam;
  • After Avianca’s fail and the prices increase, the goal is to make the market more balanced.

In order to decentralize the domestic flights market in Brazil, the government is negotiating with 40 foreign airlines to start operating in the country with the goal of increasing competition and ensure affordable prices to final consumers, according to the Brazilian media outlet InfoMoney

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The strategy went out of the paper thanks to a new law that allows 100% foreign airlines to enter the Brazilian domestic flights market and was also motivated by the lessons learned with the Avianca‘s fail in 2019. The company was used to have more than half of the domestic market in some specific regions of Brazil and since it’s gone, the segment has now only three companies operating in the country: Azul, Latam, and Gol. That’s why domestic tickets in Brazil became so expensive this year. 

By attracting these new deals, the government is trying to make the market more balanced and for now, the most advanced negotiation is being made with Air Europa. But while the deal isn’t closed, Air Europa already has an agreement with Gol Airlines to start operating some domestic flights as a partner. These flights should take off from São Paulo, Recife, Salvador, and Fortaleza landing in more than 20 Brazilian cities, according to Anac information.