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New low-cost airlines in Brazil to boost aviation market

Sunday, September 6, 2009

Two new airlines which will be operational by the end of this year are expected to increase the convenience for people traveling to stay in property in Brazil.

According to Agencia Brasil, the National Civil Aviation Agency (ANAC) has given permission for Sol Linhas Aereas to operate domestic, passenger and postal flights from its Parana base to locations such as Cascavel, Curitiba and Maringa. Nordeste Aviacao Regional Linhas Aereas has also been given a license and now just needs to obtain permission from the certificate of homologation for air transport companies before it can start operating.

The increase in demand is the consequence of the strong passenger traffic growth in Brazil and is driven by high economic growth which is forecast to further increase by nearly four per cent per year over the next 20 years. With 31 per cent of all Latin America's GDP, Brazil is the transport focal point for South America and beyond. Booming tourism has also strongly contributed to the fivefold increase in international arrivals into the country over the last 15 years. Domestic traffic is driven by concentration of population in large cities and long internal distances.

Recently, American Airlines and GOL Airlines have signed a frequent flyer agreement which allows passengers to redeem more air miles. In news of interest for US investors, American and GOL also intend to sign a code share deal in the near future to increase the availability and flexibility of routes between the US and Brazil.

Peter Dolara, senior vice president of American Airlines in Mexico, the Caribbean and Latin America said "Our customers traveling to and from Brazil will now have an unparalleled choice of destinations and schedules."

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posted by EstatesNewz, 7:06 PM

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