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Brazil approves open skies with the United States
Visit:1144 Date:2021-04-19
The Brazilian Senate approved the U.S.-Brazil Open Skies Agreement on March 7. The agreement will be signed into law by Brazil’s President Michel Temer, which will provide the U.S. Department of Transportation approving the joint business agreement between U.S. airlines and Brazilian airlines (JBA). ) Provides the prerequisites. The agreement allows an unlimited number of flights between Brazil and the United States. The United States is the most popular tourist destination for Brazilian travelers, and the signing of this agreement will lower the price of air tickets and attract more travelers.

As early as the beginning of 2016, oneworld members American Airlines and South American Airlines Group (Brazil Tianma Airlines and Chile Airlines merged) announced plans to establish a joint venture company, but the joint venture plan was shelved because the United States and Brazil did not open the sky at the time. . At present, the antitrust regulators of Brazil, Colombia and Uruguay have approved this partnership, but the relevant Chilean authorities have not yet approved the cooperation.

  A joint venture planned by American Airlines and South American Airlines Group. The route network will cover the United States and Canada, Brazil, Chile, Colombia, Paraguay, Peru and Uruguay.

   Brazil’s Azul Airlines stated that it plans to negotiate a joint venture with United Airlines, which owns 5% of Azul Airlines. At present, the two airlines have conducted some preliminary discussions on joint venture negotiations, and Azul Airlines is trying to speed up this process.

   But United Airlines has not shown a positive attitude towards Azul Airlines’ joint venture plan. In addition to Azul Airlines, United Airlines also has Star Alliance partner Brazil Avianca in Brazil. Brazil’s Avianca has previously expressed interest in a joint venture with United Airlines.

  Although South American Airlines Group and Azul Airlines are ready to make progress with their US partners, Delta Air Lines’ Brazilian partner GOL Airlines stated that it currently does not intend to deepen the relationship with Delta Air Lines. Delta Air Lines currently owns 9.5% of GOL Airlines. GOL Aviation believes that the existing bilateral air service agreement between the two countries is sufficient to meet aviation needs.

   Brazil’s approval of the US-Brazil Open Sky Agreement will advance the process of joint ventures between Brazilian airlines and American airlines. According to calculations by the Brazilian Tourism Administration, after the opening of the sky, the number of flights between Brazil and the United States is expected to increase by 30%. Currently, the three major airlines in the United States lack aviation network overlap with their Brazilian partners, and the establishment of a joint venture company will complement the route networks of these companies. However, at the same time, the approval of the joint venture plan by the relevant US regulatory agencies is relatively slow, so it is expected that the joint venture of all parties will only make substantial progress in 2019.




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