ALTA Working To Create Governmental Policies That Support The Growth Of Aviation

Transcript

Luis Felipe de Oliverira:ALTA's main priorities in the region basically are focused in the development of the industry in the region and, of course, try to bring the real value of aviation in terms of the economic growth. We are supporting the government in terms of the government policies, that we can see policies that really support the growth of the industry, and on top Working the regulatory framework, especially for the concessions—the concessions that are already done in the past—and also the future concessions of the airports in the region. Also, one important thing that we are working very hard is also in the harmonization of the legislations in the region in terms of the maintenance, in terms of the aircraft rights to flight, and also the pilot license as well. That's why basically we are seeing a lot of opportunities on that area that you can create a. Better environment for the airlines in the region grow and reach the double size that we are expecting for the next 10 years? Well, basically what we are doing, we are trying to bring back examples. You know, best practice also helps the governments to understand what is the best way to work. We have recently a very good approach in the Chilean market, and when you see a good development in terms of the saw the value of aviation and they also saw the importance of having a regulatory framework that is not a cost burden for the industry. We have a reduction since the 1st of September, if I'm not wrong, the passenger tax with a continuous decrease of this passenger tax for the next 3 years. That's a very good example to share and I think the region needs to see the value of aviation, need to see that the value that aviation brings with more people flying and more aircraft flying will add value for the region, add value for the governments as well. If an aircraft takes off more often in airports, airports will win more, will receive more income, governments will receive more taxes, passengers will have more opportunities to fly, and of course in the cheaper flights. In addition, the government will receive more Taxes, airplanes, manufacturers will sell more aircraft. That's why it's a win-win situation for everyone. That's why the growth of aviation will benefit the economies and of course benefit the development of the industry in the region. The first one that we had was in Chile. That was a very positive one. That was the government that understands our business and basically were very proactive and see the value of aviation. I believe the elections in Colombia as well will support the continuity of this this process. Aviation in Colombia grew almost 3 times during the last 3 years, a little bit above the average in the region. And I think there is a lot of things to do to continue this growth and, of course, continue the opportunity to this country grow as a hub. In other elections, we are very careful about, especially the Brazilian election, especially because it's not defined yet and the political and economic situation is quite unstable. And that, of course, affects aviation. And as Brazil is the biggest country in the region in terms of the aviation, in terms of the passengers as well, we have a lot of concerns about the results. However, we are working very well together with this government. Basically now and next week we are signing an agreement, an MOU, among the associations, ALTA, IATA, and the Brazilian Association, ABR, with the Civil Aviation Authority in Brazil, that is ANAC. And with the Minister of Transport, in order to set up an agenda for the next year. That's why, independent of the candidate that wins the election, we will have the main topics already aligned. In Mexico, we have two big concerns. The big concerns: the first is the airport. Of course, we as an industry believe that the construction of the airport is very important for the country, and we expect that this new government continues this construction to not reduce the capability of Mexico Mexican. Airlines continue to grow. In addition, we have also the energy reform. The energy reform is very important for the country in terms of the openness for international oil companies to start to commercialize fuel in Mexico, and of course that will reduce the cost for the industry. Just as I mentioned, fuel cost is around 30% of the industry costs, and any cent make a lot of difference for us. That's why Mexico, that is the 2 main concerns we have, and we expect that the government continues the reforms started in the last government.

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