Government measures can mess with Brazilian airline industry

The minister of Civil Aviation, Moreira Franco, tell the newspaper O Estado de São Paulo, about measures that are circulating in Congress modifying the airline industry can tinker with the board segment. An old fear ever prowled the sector, the opening of borders to foreign companies from competing with domestic firms on routes within the country, resurfaced. The processing of these measures is being followed with interest by all companies, since, on the one hand, allow for a greater equity interest of foreign groups in national companies. Today this figure is 20%, and with the new rules, can reach 49% of the capital.

However, according to the minister signaled, these rules may fall and international companies can take brazilian groups.

The direction of Gol Linhas Aéreas ruled saying it is a publicly traded company and does not comment on government decisions. TAM, which passes through a merger with Chile's LAN, do not let any note on the issue raised again yesterday by the brazilian website Melhores Destinos. The Brazilian Association of Airlines (Abear), which brings together all companies, sought to rule on the consequences for the market, not returned. All are still walking carefully so as not to create alarm, but understood that the government wants to move the game.

The opening of borders, which could follow this process, has always been a ghost for domestic aviation. With tickets much cheaper, since the passages today operated without passengers act as a supplement, it could take even more crisis to domestic firms. From the time of Varig this has always been an issue that, occasionally, appeared. What may, at first, an option for passengers, runs the risk of turning into a great tragedy for commercial aviation.

It is hope that the new measures encompass not only aviation, but also the airport infrastructure, so necessary to our country. Today, for example, almost half of the terminal 1 of the Antonio Carlos Jobim International Airport (Galeão) is closed for refurbishment and modernization. Passengers had already alerted to the bad conditions for some time. In other Brazilian cities problems are common, and in a country that is facing major events such as World Cup and Olympics, the airport infrastructure will be essential to ensure they are a success.