The Law and Regulation of Airspace Liberalisation in Brazil: What is the Way Forward?

The book starts from the premise that the current aviation framework in Brazil cannot sustain a full liberalization in the long run. The competition rules in place offer a strong framework, but they are not enough to foster a healthy liberalization. The opening of the domestic market must be closely regulated to avoid national carriers suffocating under external pressure, and the protection framework for passengers is much too uncertain and burdensome. This book critically analyses the policies and regulations in place by mainly comparing the Brazilian framework to the European one, as European liberalization is considered the best so far.

Format: Hardback
Length: 244 pages
Publication date: 31 May 2022
Publisher: Taylor & Francis Ltd

The aviation framework in Brazil faces significant challenges that hinder a full liberalization in the long run. While the competition rules in place provide a solid foundation, they need to be augmented to promote a healthy liberalization. Historically, Brazilian airlines operated in a homogenous market, where competition was artificial and limited. This artificial competition was achieved through legal obligations such as providing water and snacks and granting a 23kg bag allowance, resulting in a highly concentrated domestic market with few players. In comparison to other markets of similar size, such as China and India, Brazil lags significantly in terms of the number of national airlines operating. Consequently, it is crucial to regulate the opening of the domestic market to prevent national carriers from being overwhelmed by external pressure. State intervention during the liberalization process is essential to ensure that the interests of passengers are protected.

Another significant issue is the protection framework for passengers, which is inadequate and burdensome. This framework lacks harmonization, leading to contradictory judgments and potential high moral damages, hindering legal certainty for airlines. In contrast, airlines in the EU have a broader range of defenses that are more frequently accepted by courts.

To address these challenges, this book critically analyzes the policies and regulations in place in Brazil, comparing them to the European framework. The choice of comparison with Europe is motivated by the perception that European liberalization has achieved the best results to date, and as Brazil seeks to emulate best practices in the aviation industry.

The book begins by examining the historical background and development of the aviation framework in Brazil. It highlights the challenges faced by the country in transitioning from a state-controlled to a market-oriented aviation sector. It also discusses the regulatory framework established in the 1990s, which aimed to promote competition and attract foreign investment.

However, the book argues that the current aviation framework in Brazil cannot sustain a full liberalization in the long run. While the competition rules in place offer a strong foundation, they need to be further refined to foster a healthy liberalization. The book identifies several areas where modifications are necessary, including the need to address the concentration of the domestic market, promote fair competition, and enhance passenger protection.

In the chapter on competition, the book discusses the challenges faced by Brazilian airlines in a highly concentrated market. It highlights the dominance of a few major players, which limits competition and prevents new entrants from entering the market. The book proposes measures to address this issue, such as increasing the number of airport slots, promoting fair competition through open access policies, and implementing regulations to prevent anti-competitive practices.

The chapter on passenger protection also highlights the need for improvements. The book argues that the current protection framework for passengers is uncertain and burdensome, which can negatively impact the domestic market and passengers. It suggests measures to enhance passenger protection, such as establishing a clear and transparent compensation scheme, improving the quality of customer service, and ensuring the safety and security of passengers.

Furthermore, the book examines the role of state intervention in the liberalization process. It argues that state intervention is necessary to ensure that the interests of passengers and the domestic market are protected. The book discusses the need for government policies and regulations to promote competition, protect passengers, and ensure the sustainability of the aviation sector.

In conclusion, this book provides a comprehensive analysis of the policies and regulations in place in Brazil's aviation sector. It highlights the challenges faced by the country in promoting a healthy liberalization and proposes measures to address these challenges. The book emphasizes the importance of state intervention to ensure that the interests of passengers and the domestic market are protected. It also provides valuable insights into the European framework and its successes in promoting competition and passenger protection. By comparing the two frameworks, the book offers valuable lessons for Brazil in its efforts to modernize its aviation sector and achieve sustainable growth.

Weight: 650g
Dimension: 234 x 156 (mm)
ISBN-13: 9781032180861