ALTA participated in a conversation with ANAC Brazil and Direito Aeronáutico
On May 13, Gonzalo Yelpo, Legal Director of ALTA, participated in a conversation with Ricardo Catanant, Director of ANAC, and Antonio José, President of the Aeronautical Directorate of OAB Nacional. In the virtual meeting, Yelpo exposed how the excess of judicialization in Brazil can reduce the competitiveness of the country as a destination when the airlines fly again.
“We must consider that there will be competition between countries to attract airlines that will return to operate smaller and with financial damage, so they will have to re-evaluate where to allocate their investments and operational capacity. The countries that present more difficulties will probably see threatened the recovery of their connectivity and the lack of connectivity, will cause problems for tourism and logistics chains that depend on air transport”.
As a reference, Yelpo shared that, according to ICAO data, in 2019 40% of the world’s air cargo was carried in passenger aircraft. Commercial flights not only generate tourism but also commerce.
“Exceptional situations require exceptional measures”. The government could consider limiting in some way, through legislation or provisional measures, the claims for situations that take place within this context, which escape from the hands of the airlines and have a shared responsibility with the governments that impose the travel restrictions and prevent the airlines from providing the services for which they were hired.
Regarding how to start operating again, Yelpo highlighted the role of ICAO as coordinator of actions to define protocols for the reactivation of air transport and the importance of harmonizing measures among the countries of the region to avoid duplication of processes, additional costs and difficulties. The long-term vision of the authorities is fundamental as well as always maintaining safety as the number one priority.
This crisis is a golden opportunity to put aside the barriers that make it difficult to operate in the region and think about how we want to return to the skies, how to be more efficient and not have more than 20 different regulations in the region.
Finally, Yelpo stressed the importance of government support, given that airlines are capital-intensive companies and are suffering from a lack of cash flow while fixed costs remain largely intact. Without strong government support, we will continue to see airline reorganization processes and a detriment to the region’s connectivity and economy.
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