Marina Estrella and Arthur Fontoura

This statement is being heard from many citizens in Brazil, be it politicians, lawyers or journalists, among others. The political and economic context in which we live is delicate, and changes are needed. Among these changes, we highlight the development of infrastructure in the country.

The Brazilian aviation market is one of the largest in the world, with great growth potential, especially with regard to the construction, expansion and modernization of airports. Aiming at improving the sector with a view to encompassing new technologies and the growing demand of passengers at airports, the Senate set up the Senate′s Commission of Experts for the Revision of the Brazilian Aeronautics Code (CERCBA), in order to update and redraft the Brazilian Aeronautics Code (CBA) (Federal Law No. 7,565 of 1986).

Other factors contribute to the revision initiative by the commission, such as the need for greater security in air traffic; possibility of having new companies operating in the sector; greater transparency as regards passengers′ rights; definition of steady rules to apply to airport concessions, among others.

The most controversial issue that permeates the CERCBA discussions is the opening of foreign capital participation in airlines (now limited to 20%). As regards this matter, a majority recently decided towards the full opening to foreign capital.

Although the airline industry is regulated, having therefore specific rules and restrictions for its functioning and operation, there is no economic or safety reason to justify the maintenance of the 20% limit to foreign capital participation in companies of this sector. It should be considered that by setting up in Brazil, or joining a national company, foreign companies will be subject to local legislation and authorities, as well as to all legal procedures to perform activities in the country (including the obligation to have Brazilian partners).

Accordingly, such a limitation is an obstacle to the full development of the airline sector, and keeps it away from successful examples of the national infrastructure, such as telecommunications, ports and transportation (which have no restriction on the activities of foreigners). Such a limitation does not protect the internal market from harmful interventions, but contributes to its stagnation. It should be noted that the opening to foreign capital can bring greater competition and growth for the aeronautics market (not only commercial aviation, but also other segments such as air taxi operators and private airfields).

The activity claims for renewal and now is the time to invest in this sector. The arrival of new agents will foster the industry, increase the number of jobs in the sector and stimulate the demand growth, which will be accompanied by a balanced offer.