{"id":166198,"date":"2024-06-17T15:00:59","date_gmt":"2024-06-17T15:00:59","guid":{"rendered":"https:\/?p=166198"},"modified":"2024-06-17T22:34:18","modified_gmt":"2024-06-17T22:34:18","slug":"market-conditions-drive-international-airlines-away-from-brazil-airbus-says","status":"publish","type":"post","link":"https:\/\/aviacionaldia.com\/en\/2024\/06\/market-conditions-drive-international-airlines-away-from-brazil-airbus-says.html","title":{"rendered":"Market conditions drive international airlines away from Brazil, Airbus says"},"content":{"rendered":"\n

Complicated market conditions have prevented foreign airlines from launching local operations in Brazil, planemaker Airbus’ head in the country told Reuters<\/a>.<\/p>\n\n\n\n

In 2018, rules which had limited the size of the stake a foreign investor could hold in an airline were overturned in a bid to open up competition among carriers in Latin America’s largest economy.<\/p>\n\n\n\n

Still, market share in Brazil is dominated by just three companies: Azul , Gol and LATAM Airlines.<\/p>\n\n\n\n

Airbus executive Gilberto Peralta said in an interview last week that the reluctance from international airlines to enter Brazil was mainly due to judicial uncertainty, citing a high number of legal actions taken by Brazilian customers against airlines, as well as high fuel prices.<\/p>\n\n\n\n

\u2192 Airbus demonstrates A330neo performance during high-altitude test<\/a><\/em><\/strong><\/p>\n\n\n\n

“Capital barriers are gone, a foreigner could come and set up a company in Brazil, but they don’t\u2026 It’s a lot of trouble,” he said.<\/p>\n\n\n\n

Brazil’s strong consumer protections make it easy for flyers to sue carriers for a range of issues, including delayed or canceled flights.<\/p>\n\n\n\n

Late last year, airline lobby group IATA had urged state-run oil company Petrobras to reduce fuel costs, calling kerosene prices in the South American nation “excessively high.”<\/p>\n\n\n\n

Petrobras said earlier this month that jet fuel prices in Brazil have already fallen 8.8% so far in 2024.<\/p>\n\n\n\n

Most Airbus orders come from customers in Asia, the U.S. and Europe. In Brazil, orders from Azul and LATAM stand at more than 100 aircraft in the coming years.<\/p>\n\n\n\n

Asked about the impacts of the quality crisis faced by fellow planemaker Boeing which has generated delays in aircraft deliveries, Peralta said he hopes for stabilization at the competitor.<\/p>\n\n\n\n

“I’m sure they’ll fix it\u2026 that’s not good for the market, as it creates insecurity and generates concern among users,” he said.<\/p>\n\n\n\n

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