Azul spokesman Gianfranco Beting stated the company is opposed to the privatisation of Brazilian airports and the establishment of a Secretariat of Civil Aviation by the government, which will be subject to ANAC and Infraero, due to the likelihood of rising costs under private ownership (panrotas.com.br, 11-Feb-2011).
Azul expresses opposition to airport privatisation in Brazil
You may also be interested in the following articles...
Avianca Brazil faces tough conditions and fierce competition on new international flights
Brazil’s fourth largest domestic airline, Avianca Brazil, has opted to branch out internationally with new service to Miami and Santiago, Chile, joining formidable competitors in each market that will compete fiercely with a new rival. Avianca Brazil’s competitors have significant strength in each market, with an ability to market vast network connections in conjunction with their partners.
Avianca Brazil’s decision to add international destinations occurs as its domestic growth continues unabated, despite warnings by its Brazilian rivals that overcapacity in the domestic market could threaten a slow recovery of yields that is just starting to take shape.
Avianca Brazil’s branching out into international markets occurs against the backdrop of a potential merger with Avianca Holdings. Each company is majority owned by Synergy Aerospace, but operates separately. After completing the evaluation of a potential merger with Avianca Brazil in 2014, Avianca is now reconsidering a potential tie up with the airline amid an ugly shareholder battle over Avianca’s pursuit of a strategic partnership with United.
LATAM Airlines Group; newly profitable but caution reigns as low cost entrants prepare to pounce
During 2016 LATAM Airlines Group recorded its first annual profit since 2011, and its first quarterly increase in revenues during 4Q2016 after nine consecutive quarters of decline.
Much of the improvement was driven by a slow recovery in the company’s largest market, Brazil. However, unit revenues in Brazil remain below their historical highs. The country’s two largest airlines – LATAM Airlines Brazil and Gol – continue to practice capacity discipline while other Brazilian airlines plan to expand supply in 2017, which could affect the tenuous recovery just beginning in the country.
Even as overall conditions in Latin America appear to be improving, LATAM is still feeling some macroeconomic pressure in its Spanish speaking markets. In certain geographies, LATAM is facing competitive pressure from capacity increases by its rivals as well as the debut of new low cost airlines in Peru and Chile that is likely to intensify pricing pressure in those regions.
Despite growing signs of a recovery, LATAM remains one of the more cautious operators in the region, with planned capacity growth for 2017 that is lower than that of some of its larger rivals, which feel confident that demand is robust enough to absorb their planned growth.