Why Brazil does not have cheap airlines? – New



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Who can plan in advance and have some flexibility to travel, you can find plane tickets in Europe or the United States much cheaper, because of the low cost airlines.

But why are there no businesses?

Lack of competition, high taxes and a few airports are just some of the factors mentioned by experts to explain the lack of cheaper options in the country.

(19659006) On the site of the British company Easyjet, Monday (18/6), it was possible to find sections of 22 pounds to 35 pounds for trips between London and cities like Nice (France), Vienna (Austria) and Barcelona (Spain)

The average ticket price in Brazil is double that of some low cost airlines in Europe. The average Irish airline Ryanair in 2017 was 39 euros (R $ 176). The average ticket paid for a domestic flight in Brazil was R $ 357 last year according to Anac.

There are also specific factors that depress prices in Europe, such as small distances between countries and the high density in medium-sized cities, which helps take the roads of larger and more expensive centers.

Low competition

For Paulo Resende, coordinator of the logistical and infrastructural core of Fundação Dom Cabral, little competition in aviation

Currently, the domestic domestic market in Brazil is concentrated in four companies: Avianca, Azul, Gol and Latam. According to Resende, the number of competing companies for pbadengers would not necessarily increase prices – "they have no room for maneuver," he said. It could, however, encourage them to seek more efficiency, better management and, as a result, lower costs.

"The more free competition is, the more the path will be open to cheap performance," said the professor. "The markets that favor the consumer around the world are open or subsidized markets, the Brazilian government is no longer able to subsidize anything and our market is extremely closed, one of the last to do not allow the entry of foreign capital. "

It is forbidden to have an airline in Brazil controlled by foreign capital, the maximum allowed participation for investors and companies from outside the country is 20%. which increases this limit is currently in the Chamber of Deputies.

Airports are Missing

"Regional airports are one of the main pillars of ticket reduction, but there is no reason why. There are none in the country. "19659002" These companies are still trying to operate at alternative municipal airports that have higher fares and higher costs. lower than the plants, "said engineer Milton Zuanazzi, former director of Anac and now president of SBTur travel agency. "

Today, the capital of São Paulo is served by Congonhas, Cumbica (Guarulhos) and, to a lesser extent, Viracopos, in Campinas.On the outskirts of London, to get an idea, there is five airports in addition to Heathrow, the main one.

Long Distances

Long distances are also a problem in Brazil. "The long distances in most major markets in Latin America make the region less accessible to low-cost model, "said IATA (International Air Transport Association), which sees a slow development of this type of company in Latin America." It is more productive for them to operate six flights of 39, an hour and 30 minutes a day that three flights of three hours, "said Iata in

" Europe is denser than Brazil or the United States, "Zuanazzi said. If you live in Florence, it is not difficult to catch a flight to Pisa (Italy), 40 kilometers away. In Brazil, the distances are long, and other large cities "

Taxes and regulations

Among the main complaints of Brazilian companies about the pressures on ticket prices, the tax burden on labor costs and, mainly, fuel kerosene, which feeds the aircraft. "The fuel accounts for about 30% of the value of the flight and pays very expensive taxes, especially the ICMS, which is nearly 30% in some states," said Zuanazzi.

ICMS is defined by the states and, the maximum allowed tax on aviation kerosene is 25% – a percentage in São Paulo, precisely the largest market and the main point of departure for aircraft in the country .

Market regulation is also identified by IATA as companies.

"Some governments impose business regulations that limit the ability of companies to work with different business models, for example, requiring all fares to be refundable and exchangeable, limiting baggage fees, etc." Iata said

Cultural factor also influence

The collection apart from the articles, as a choice of seat, is not prohibited in Brazil, but only recently appeared more frequently as additional purchases in exchange for 39; a promotional rate

Ricardo Catanant, superintendent of air services oversight of Anac, said that the consumption habits of each country still weigh. "The cultural question weighs heavily," he said. He mentions that there have been attempts in the past between airlines to drain services on domestic flights, such as providing free snacks on board. Cereal bars and options were added to the free snack.

"This is not just because it's a possible resource that the company will use in the name of price, the market is constantly seeking consumer satisfaction," he said. said the superintendent of Anac. "It is that, for the moment, with the growth that we see low-cost aircraft in the world, the consumer seems to prefer the low price."

(Report: Juliana Elias, edited by Armando Pereira Filho) [19659032] See the path your bag makes at the airport after its extraction

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