23-May-2019 10:28 AM

Brazilian Congress approves 100% FDI but luggage limit returns

Brazil's Ministry of Tourism announced (22-May-2019) Brazil's Senate approved a bill allowing 100% FDI in Brazilian carriers. Minister of Tourism Marcelo Antonio stated: "As important or even more important than attracting international tourists is to create conditions for Brazilians to travel to domestic destinations". The bill includes imposing the return of a 23kg checked bag allowance. IATA stated: "IATA approaches with profound concern the risks this manoeuvre [imposing baggage allowance] represents to the Brazilian aviation". IATA argued that the allowance "chases away" international carriers' interest and "suffocates even more the commercial aviation potential". ABEAR (Brazilian carriers' association) stated: "The final version of the bill contradicts its initial objective of increasing competition in the sector". ABEAR argued that by reinstating the checked bag allowance, the bill "removes from the consumer the alternative to choose most accessible fare bracket… preferred option for two thirds of passengers since its implementation". [more - original PR - Portuguese - Ministry of Tourism] [more - original PR - Portuguese - IATA] [more - original PR - Portuguese - ABEAR]

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