Committee approves increase of foreign capital in the airline industry

25/06/2010 07h00

The special committee on rule changes at the air sector (Bill 716/09 and others) approved on Wednesday (23), a text that changes 47 out of 324 articles of Brazilian Air Force Code (CBA – Bill 7.565/86). The proposal, among other points, amplifies from 20% to 49% the limit for foreign capital participation at the national air companies, and increases plane passengers’ rights.

The approved text is a Deputy Rodrigo Rocha Loures’s substitute (PMDB-PR) to 31 bills on the subject with suggestions, including from Representative Inquiry Committee (CPI) on the Air Crisis, installed in 2007 at the Chamber. The clean bill now follows for The Floor’s analysis.

The first vice-president of the Chamber, Deputy Marco Maia (PT-RS), has affirmed that the substitute vote should occur in August. According to him, the text should be approved easily. “The special committee has already built a great agreement and, at this subject, there is not situation or opposition”, he affirmed.

Foreign capital
According to text, national air companies will be able to count on until 49% of foreign capital with vote right. Nowadays, this limit is of 20%. For Rocha Loures, this change is going to reinforce investment capacity of national companies, provide more competitiveness to sector and, consequently, force price air passage drop.

Delayed Flights
According to the current Air Force Code, a passenger should suffer a minimal delay of four hours to embark into another flight, similar to the last one, or receive an integral already-paid value reimburse. According to the new text, yet after two hours of waiting, the passenger is supposed to have a right to meals, phone cards and Internet access.

From three hours, they can choose among: to embark into another flight at the same day, or at their more convenient date; transfer their ticket to others; or receive the already-paid integral reimburse. Options are the same for flight cancellation cases or embark refusal because overbooking.

Still in favor of consumers, the substitute predicts maximum penalties for flight renunciation cases by the passenger (5% for whom quitting, with at least seven previous days of the flight date, and 10% for the other cases). The Code has not regulated this charge today.

During the issue analysis at the Floor, deputies will still be able to propose changes at Rocha Loures’ substitute. Otavio Leite (PSDB-RJ) already said he is going to present an Amendment for including more rigid rules on pilots’ minimal formation in the Country. According to him, the Executive Branch should keep partnerships with university institutions to qualify those professionals permanently.

Otavio Leite should also suggest that the Code establish specific rules for hang glider, ultra-light and free flight. The Deputy reminds that the current bill from 1986 is outdated and needs article regulation for sportive air practice.

Translation - Grupo Solucion-SP Language/Márcia Regina Monteiro Ferreira