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]
Brazil ABEAR: Not possible to maintain downward trend in airfare, now up to the gov't for relief
You may also be interested in the following articles...
The Trump presidency casts a long shadow over a tentative recovery in Latin America
After battling dismal economic conditions for the past two years, Latin America is poised to begin pulling itself out of fiscal decay in 2017. Near the end of 2016, forecasts tilted toward a return of modest GDP growth between 1.5% and 2% for 2017 after the region endured an economic recession for the prior two years.
CAPA Airport Finance & Privatisation Review 2015/2016. The day has come for PPPs
CAPA's 170-page "Global Airport Finance and Privatisation review 2016 – the day has come for the PPP" is is the fourth in a series of CAPA reports on airport privatisation and investment published since Jan-2015.
During that time a number of deals have been concluded and announced across the world though their volume remains below the levels prior to 2008. One of the key trends is an identifiable increase in activity in public-private partnerships (PPPs) globally.
In a world where obtaining a viable return on investment remains a difficult task it is evident that investor sentiment once again favours long term transport infrastructure. Airports are among the well tested models for investment.