Federal Government wants to create a fund to subsidize air fares in the Legal Amazon

24/11/2009 13h45

The measure will cause an increase of 1% to 3% in the price of air fares

The proposal to establish a fund to subsidize the air fares on the Legal Amazon was made by government representatives during the public hearing on Tuesday (17th), promoted by the Committee on the Amazon, National Integration and Regional Development. The meeting was convened to discuss the Brazilian Airport Privatization Program (PND) .

According to the secretary of Sustainable Development of the Secretariat for Strategic Affairs of the Presidency of the Republic (SAE), Carlos Alberto Lourenço Pereira, it is necessary to create a form of subsidy that has already existed in the past to facilitate the movement of the population of the Amazon.

Partial subsidy
Pereira proposes recreating the contribution to the National Air Transport Fund, which would carry out a partial subsidy. "This partial subsidy can be given through a competition for the company offering the lowest price, which requires the lowest subsidy. That would be a Contribution to Intervene in the Economic Domain, a Cide."

Alberto Lourenço remarked that the maximum supplement would be of 3% on airline tickets purchased by other Brazilian travellers, on the regular routes.

The proposal will be sent after the completion of additional studies by the Ministry of Defense, but political decision on the routing of the project depends on the Staff of the Presidency of the Republic.

Reporting – Idhelene Macedo / The Chamber´s Radio Station
Edition - Regina Céli Assumpção / RX
Translation – Adriana Resende