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Reduction of tariffs on international flights can harm consumers in the future, says association

This article was translated by an automatic translation system, and was therefore not reviewed by people.


 



Rio de Janeiro - The release of discounts on airfares to Europe and the United States are good for passengers, which could pay for cheap tickets. But in the long term, the release may become a loss, warns the director of International Affairs of the Brazilian Association of Travel (ABAV), Leonel Rossi.

For him, without regulation, the discounts may hurt the domestic tourism and to "eliminate" the national market companies.

"Now, with the release, there may be an increased competition and the rates can fall. In this case, would be harmed Brazilian companies, suffering from competition from American and European, "he added.

The National Agency of Civil Aviation (Anac), decided today (22) gradually release the price of tickets to Europe and the United States. The discount starts with approval for 20% reduction of the minimum price (floor). From 2010, the fare is fully released.

The director explained that the release of discounts can mean a "predatory competition" because the Brazilian companies, smaller than the foreign companies, can not endure for long the damage caused by the reduction of tariffs.

"A foreign company for which Brazil represents about 2% of the international market may lose money for some time without problems. The Brazilian, for which the North American market represents about 30%, no, "said

According to him, with the elimination of firms in the market, no competition and prices may rise again, harming the consumer. "I think the Anac not thought of everything that should be considered," criticized.

In an interview to the press in Rio de Janeiro, Anac directors of Brazilian companies have ensured that the economic conditions have to compete with foreign and even operate in other countries with tariffs released.

Rossi also draws attention to the effects of the measure in the domestic market. With the reduction in international tariffs, the tourist may prefer to travel outside the country, which would undermine the entire national tourism network.



 



Source: Agência Brasil

This article was translated by an automatic translation system, and was therefore not reviewed by people.

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