São Paulo – The National Civil Aviation Agency (Anac) has signed and renegotiated 12 air service agreements that regulate flights and routes between Brazilian territory and foreign countries. Seven of these agreements involve Arab countries and expand the possibilities for transport between Brazil and those destinations.
Brazil signed bilateral agreements with Oman, Bahrain and Kuwait, and renegotiated treaties with the United Arab Emirates, Qatar, Egypt and Morocco. Presently, only two Arab airlines operate flights from Brazil, namely Emirates Airline and Qatar Airways. According to Bruno Dalcolmo, Anac’s International Relations superintendent, the new agreements enable the country to receive flights from companies based in all of the countries mentioned, and conversely, Brazilian companies interested in doing so will be able to transport passengers to Arab nations.
The agreements with the United Arab Emirates and Qatar already existed. Currently, each of these countries operate seven flights per week. With the new terms, a free capacity agreement has been adopted with both, meaning that the number of flights operated is no longer preset.
Discount limits have also been lifted, and airlines are now allowed to establish agreements with companies from other countries in order to make flight connections. The previous terms required connection agreements to be signed with domestic companies only. Another change is that any city in the Emirates, Qatar, and Brazil is apt to receive flights by airlines from any of the countries.
The new agreements signed with Oman, Bahrain and Kuwait were already established under the same conditions as those of the agreements with the Emirates and Qatar. “One of our objectives was to avoid operational discrepancies among companies based in the region,” says Dalcolmo.
The executive claims that he does not know how airlines will respond to the new possibilities yet, but that he heard that Emirates should operate more flights to São Paulo. “It is only natural that companies should have time to think and study the new market,” he says.
With regard to Egypt and Morocco, the agreements were less comprehensive, even though they have been modernized. The new terms of the agreement with Egypt were negotiated in 2009, as previously announced by ANBA. With Morocco, the terms were discussed in 2010. The number of flights will not be free, but the number of flights has been increased, and more cities may be served. Moroccan and Egyptian companies will also be allowed to operate in Brazil if there is interest.
There are other agreements to be renegotiated as well. “Iraq has already expressed an intention of renegotiation, but the date for a consultation meeting has not been set yet,” said Dalcolmo. He also claims that bilateral meetings have been scheduled with Syria, Tunisia and Libya. “We will surely sign new agreements and renegotiate existing ones.“ The agreements with Lebanon and Jordan should also be revised.
According to Dalcolmo, approximately 80% of traffic between Brazil and Arab countries passes through Europe, mostly through the cities of Paris, Madrid, Milan and Lisbon. “This indicates the growth potential of direct routes between [Arab countries and Brazil].”
Regarding interest from Brazilian companies, Dalcolmo underscores that presently, only TAM operates long-range trips. As for the possibility of reducing the cost of tickets, he claims that “as the number of companies, routes and competitors goes up, the enterprises start competing for better, cheaper services.”
The two Arab companies operating in Brazil work from the city of São Paulo, a scenario that might change with the new agreements. To the Anac’s superintendent, Rio de Janeiro is the most likely location for expansion of routes to Arab countries. “Given the saturation of the São Paulo market, other cities will tend to receive these flights.”
*Translated by Gabriel Pomerancblum
