In the next ten years, the Brazilian Association of Airlines (Abear) aims to double the number of passengers transported in the country, reaching a total of 200 million people.
The scenario was outlined by Abear president Eduardo Sanovicz during the panel “Social and economic benefits of aviation in Brazil and effects on the tourism sector,” presented at the international fair World Trade Market (WTM) in São Paulo.
According to the leader, the goal does not seem so distant when analyzing the growth from 2002 to 2015, a period in which the number of Brazilians traveling by plane increased from 30 million to 100 million. However, the sector will need to reverse the decline of eight million occupied seats in the last year.
For him, the economic crisis forced companies to cut costs and reduce executive travel – which represents two-thirds of air traffic in the country. The representative of the Association also pointed out the obstacles for Brazilian companies to become more competitive.
“The main challenges are to review the taxation on aviation kerosene, align the regulatory environment with the international market, and seek to implement measures that help reduce the cost of tickets for consumers,” analyzed Sanovicz.
According to Abear data, a 10% decrease in ticket prices represents a 14% increase in the number of passengers. To achieve this, the entity is also working on reducing the ICMS, a tax that varies by state, on aviation kerosene.
In some regions, the tax makes prices up to 50% higher than in European countries and the United States. “We talked to the managers and achieved results. We managed to get 16 of the 27 states to make agreements to reduce ICMS, and as a result, they gained new flights. The clearest example is the Federal District, which, when it reduces its rate from 25% to 12%, gains 290 new weekly flights,” concludes Sanovicz.
WTM Latin America
Based in São Paulo, the event, which is the main one in the travel and tourism segment of the Latin American continent, reaches its fifth edition. Focused on leisure and corporate tourism, the fair brings together entrepreneurs, public managers, and professionals from international tourism.
Debates, conferences, country booths from around the world, and networking areas energize the pavilions of Expo Center Norte. In 2016, the event generated over $370 million in new business conducted between exhibitors and buyers, a 2.3% increase compared to 2015, and welcomed 6,540 professionals.
Source: Portal Brasil