The release on international airfares’ control was debated on Thursday (30), in a public hearing with the Committees on the Brazilian Aeronautic Code; and on Tourism and Sports; and on Transportation. At the joint public hearing, representatives of air companies called for equal conditions to compete with international companies. Last week, Anac announced a chronogram on the release on airfares’ control for flights to the United States, Europe, Africa, Oceania and Australia.

A group of congresspeople will discuss with Anac ways to avoid that the release on airfares control harms domestic companies. One of the points to be discussed is exactly the extension of the term for those airfares to be released. The agency, though, did not indicate if it will review the process.

Discounts
Anac allowed initially a discount of up to 20% for international air tickets, regarding the floor established by that agency. In July, that discount can get to 50%; in October, 80%; and, in April 2010, those fares will be completely free.

The current floor for international fares in flights departing from Brazil (round trips) is US$708 (around R$1,500) to the United States, US$869 (R$1,900) to Germany, France, Italy or the United Kingdom, and US$848 (R$1,800) to Cuba.

Money investment
During the hearing, representatives of domestic air companies were favorable to the release on airfares’ control, but asked for equal conditions to compete with foreign companies. The Commercial and Planning Vice-president of TAM, Paulo Castello Branco, asked for the disencumbering of the airline industry.

He affirmed that there is a discrepancy, if the tax burden of different countries is compared. “In Brazil, the tax burden on the revenue is approximately 32%. In Germany, it is 29% and in the United States, 22%. In Chile, right beside us, it is 16%”, he affirmed.

Moreover, continued Castello Branco, if compared to the North-American and European companies, TAM operates in a much smaller scope, regarding the amount of airplanes and of benefits, which does not allow competition in equal conditions.

"All foreign governments help their air companies. Here, in Brazil, I cannot remember of any cent being invested in it, during TAM’s 33 years of history”, he added.

Tourism
Deputy Otavio Leite (PSDB-RJ), who suggested that hearing, showed his worry with the impact of the release on the airfares’ control for international flights on domestic tourism. He highlighted that it is currently necessary to solve the loss at the Brazilian touristic balance, which could have been made by means of the airline industry.

“In the last 12 months, Brazilians left US$10 billion abroad. In the same period, foreigners left here US$5 billion. We want them to come to Brazil, and preferably on Brazilian air companies”, he affirmed.

Group
The group created during the hearing will be formed by Deputies Marcelo Teixeira (PR-CE), Lídice da Mata (PSB-BA), Luiz Sérgio (PT-RJ), Rodrigo Rocha Loures (PMDB-PR) and Otavio Leite.

Representatives of the Federal University of Rio de Janeiro (UFRJ), of the Aeronauts’ Union, of GOL, of the Brazilian Association of Travel Agencies (Abav), of the Finances Ministry and of the Defense Ministry also participated in the meeting.

Report - Noéli Nobre
Editing - Newton Araújo
Translation - Positive Idiomas Ltda