A PYMNTS Company

Brazil: Forcing airlines to offer regional flights will harm competition – CADE

By  |  April 30, 2019

Brazil’s Administrative Council of Economic Defense (CADE) has expressed its concern over recent measures promoted by Congress, authorizing foreign airlines to operate within Brazil.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The Department of Economic Studies at the agency has declared that the proposal for airlines to be forced to offer regional flights as a condition for entering the market, as proposed by the amendment to Law MP863 / 2018, could have negative effects for competition.

    According to the CADE; the obligation to operate a minimum of 5% of flights on regional and non-international routes in order to operate in the country could reduce foreign investment, since the clause would force these airlines to operate in unattractive markets. In particular, CADE estimates that the measure would have a direct impact on low-cost airlines that have expressed interest in entering the Brazilian market.

    Full Content: ConJur

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.