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Brazil ABEAR: Not possible to maintain downward trend in airfare, now up to the gov't for relief

11-Oct-2013 9:37 AM

Brazil's Brazilian Association of Airlines (ABEAR) warned (10-Oct-2013) "it is not possible to maintain the downward trend in fares in Brazil, which caused prices to fall 43% between 2002 and 2012" due to rising costs and the rising USD. ABEAR president Eduardo Sanovicz noted Brazilian carriers have made efforts to reduce costs such as adopting more fuel-efficient aircraft and improving procedures and management, but said "these measures have reached their limit". Mr Sanovicz said the industry is now dependent on actors such as the Government to provide relief at key pressure points, including "the heavy taxation of the sector and the price of fuel", which he noted was "20% more expensive than the world average". Mr Sanovicz continued, "The high taxes made sense when air transport was restricted to a small number of people", but noted air transport has now become "mass transit" and that since passenger numbers have tripled, taxes should be reduced by a third. Mr Sanovicz added, "The industry is not asking for help. It is asking for objective conditions to continue to grow and contribute to building a modern country." [more - original PR - Portuguese]