MercoPress. South Atlantic News Agency

Brazil liberates international air passenger fares

Brazil’s Civil Aviation Agency, ANAC, announced Wednesday the gradual liberation of air fares for all international flights departing from Brazil. The decision applies to all regular airlines, national or international and will be arranged according to a one year chronogram.

Currently all Brazilian air fares must respect a minimum price but once the decision is published in the Official Gazette air carriers will be able to offer 20% rebates on the current fares.

Three months later the rebate will increase to 50%, and another three months later to 80%. Six months later minimum prices will disappear and companies will be able to offer whatever fares they wish.

The rebates will be applied to a list of ANAC minimum or “floor” fares for flights to North America, Central America, Europe, Asia, Africa and Oceania.

ANAC in 2008 had applied a similar gradual system for flights to South American countries originating in Brazil, which culminated last September. Brazilian domestic flights were the first to benefit from the new fares system, which is contemplated in the ANAC creation Bill 11.182/2005.

The release points out that rebates are not mandatory, but since ANAC guarantees freedom to fix fares, each airline will be entitled to offer discounts, or not, according to its marketing strategy.

“However ANAC expects competition to benefit consumer with promotions, mainly in low season periods”.

But travel agents have pointed out that given the high concentration in a few airlines, the system, which is positive, could not have the expected results.

In the current list of minimum fares, round ticket to Spain costs 863 US dollars and with the 20% discount, 690; UK, 869 and 695 USD; China, 1.663 and 1.330 USD; South Korea, 2.150 and 1.720 USD; US, 708 and 566 USD; Mexico, 875 and 700 USD.