Regional Aviation Programs in Brazil - 2014
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Transcript of Regional Aviation Programs in Brazil - 2014
Regional Aviation Programs in BrazilAirport Infrastructure and Subsidies to Airlines
Presidency of the Republic of BrazilSecretariat of Civil Aviation
BOGOTA, November 10th, 2014
Gustavo Pacheco Fortes FleuryAir Services Policy Manager
1. Overview of Air Transport in Brazil
2. “Programa de Investimentos em Logística: Aeroportos” (Logistics Investment Program: Airports)
3. “Programa de Desenvolvimento da Aviação Regional” (Regional Aviation Development Program)
4. Further Issues
Legal change
Institutional change
1931: Creation of the Department Of Civil Aviation (DAC)
1941: Creation of the Ministry of Aeronautics
1961: 1st National Commercial Aviation Conference (CONAC)
1972: Creation of INFRAERO
1991: Abolition of the SITARs
2001: Liberalization of domestic airfares
2007: Creation of the Secretariat of Civil Aviation of the Ministry of Defense (SAC/MD)
2011: Creation of the Secretariat of Civil Aviation of the Presidency of the Republic (SAC/PR), holding the status of Ministry
1927: First scheduled flights in Brazil
1938: 1st Civil Aviation Act (Law-Decree 483)
1959: Introduction of jet aircrafts in Brazil
1966: 2nd Civil Aviation Act (Law-Decree 32)
1975: Creation of the Integrated Systems of Regional Air Transport (SITAR)
1986: 3rd Civil Aviation Act (Law 7,565)
1999: Creation of the Ministry of Defense
2006: Creation of the National Civil Aviation Agency (ANAC)
2009: National Civil Aviation Policy (Decree 6,780)
2012: “Logistics Investment Program – Airports” (PIL)
2014: “Regional Aviation Development Program” (PDAR; Provisional Measure 652/2014)
Regulated air fares Deregulated air faresRegulated routes Deregulated routes
Subsidies No subsidiesNo limit to foreign
investment 20-percent limit on foreign investment on an airline
2001
1991
2004
1966
Overview of Air Transport in Brazil
Policy change
Program implementation
Milestones of Air Transport in Brazil
Regu
lato
ry
fram
ewor
k
SECRETARIAT OF CIVIL AVIATION
• Public Policies and Planning• Government Coordination• Airports Grant Plan
MINISTRY OF DEFENSE
• Military Aviation and Air Defense
• Air Traffic Control (ATC)• Accident analysis
INFRAERO
Government-owned public airport operator
ANAC
Independent Federal Agency
DECEAMilitary department in
charge of Air Traffic Control (both civil and
military aviation)
CENIPAMilitary center for
accident analysis and prevention
Overview of Air Transport in Brazil
NorthArea: 45.3%
Population: 8.3%Pop. density: 4.1 per sq. km
MidwestArea: 18.9%
Population: 7.4%Pop. density: 8.8 per sq. km
Overview of Air Transport in BrazilBRAZIL Area: 8.52 million sq km (3.29 million sq mi)
Pop.: 202.7 million (2014 est.)Adm. division: 26 states (divided into 5,570 municipalities) and one Federal District.GDP (nominal): USD 2.24 trillion (2014 est.)
AMAZONNortheast
Area: 18.3%Population: 27.8%
Pop. density: 34.2 per sq. km
SoutheastArea: 10.9%
Population: 42.1%Pop. density: 86.9 per sq. km
SouthArea: 6.8%
Population: 14.4%Pop. density: 47.5 per sq. km
Overview of Air Transport in BrazilBRAZIL – Population density
Anthropization (in red)
1950-1960
1997-2004
Overview of Air Transport in BrazilDomestic routes – Sept. 2014*
A route is considered, in this case, in terms of departure and destination. A flight from airport “A” to airport “B” is one route; a flight from “B” to “A” is another route. Some connections between airports are “one-way only”.
Overview of Air Transport in BrazilCapacity offered on domestic routes, per week – Sept. 2014*
Differently from the previous map, a route is considered, in this case, as the connection between airports “A” and “B” regardless of which one is an origin or destination point.
Source: ANAC
Overview of Air Transport in BrazilSupply (available seat kilometers – ASK) and demand (revenue passengers kilometers – RPK) on Brazilian domestic air transport – 2001-2013 (in billions)
SupplyDemand
* 2014: January to July, compared to the same period in 2013.
Overview of Air Transport in BrazilGrowth of supply (in ASK) and demand (in RPK) on the Brazilian
domestic market – 2001-jul/2014* (in percentages)
Source: ANAC
Demand (%) Supply (%)
Overview of Air Transport in BrazilMonthly average load-factor on domestic routes – Jan/2000 to Jul/2014 (%)
Load-factor (%) Linear trend (%)Source: ANAC
2012-2013: 4.63% increase of the average airfare and 1.06% increase of yield values.
Overview of Air Transport in BrazilInflation-adjusted average airfare and yield on the Brazilian domestic
market – 2001-2013 (in BRL)
Inflation-adjusted average rate (R$)
Inflation-adjusted yield (R$)Source: ANAC
Overview of Air Transport in BrazilNumber of passengers on domestic and international flights in Brazil
– 2004-2013
Source: ANAC
Mill
ons o
f pas
seng
ers
(dep
artu
res +
con
necti
ons +
arr
ival
s)Overview of Air Transport in Brazil
Number of passengers on Brazilian airports (departures + connections + arrivals) – 2003-2013
Source: INFRAERO
Overview of Air Transport in BrazilNumber of passengers on Brazilian airports - 2013
Source: INFRAERO
Overview of Air Transport in Brazil
Airlines’ domestic market-share – 2012-2014* (percentage of RPK)
Source: ANAC
Indicator of market concentration (Herfindhal-Hirschman Index - HHI) for the Brazilian domestic market – 2000-Sept/2014
2004• VASP’s bankruptcy• VARIG’s crisis, with
diminishing fleet (bankrupt in 2006)
2008• Azul enters the market;• Webjet is sold to CVC (Brazil’s
biggest tourism operator) and increases its fleet from 3 to 11 aircrafts;
• Trip sells 20% of its shares to Skywest Airlines.
2012: • Gol acquires Webjet; • Azul acquires Trip; • HHI would be 0,299 if those
mergers had not happened.
Overview of Air Transport in Brazil
192 airports served by scheduled flights throughout 1999, with a peak of 183 airports in February 1999.
Airports serving State capitals (31)
Regional airports (161)
Overview of Air Transport in BrazilAirports served by scheduled
flights in 1999
192 airports served by scheduled flights throughout 1999, with a peak of 183 airports operating simultaneously in February 1999
1,020 routes served by scheduled flights, with a peak of 837 routes being operated simultaneously in Januray 1999.
Airports serving State capitals (31)
Regional airports (161)
Route served by scheduled flight (1,020)
Overview of Air Transport in BrazilRoutes and airports served by
scheduled flights in 1999
106 airports served by scheduled flights in Sept/2014.
95 airports stopped being served by scheduled flights.
9 airports began to receive scheduled flights.
Airports serving State capitals (31)
Regional airports operated in 1999 and 2014 (66)
Airports where operations began after 1999 (9)Airports where operations ceased after 1999 (95)
Overview of Air Transport in BrazilComparison of airports served by
scheduled flights in 1999 and Sept/2014
106 airports served by scheduled flights in Sept/2014.
Overview of Air Transport in Brazil
Airports serving State capitals (31)
Regional airports operated in 1999 and 2014 (66)
Airports where operations began after 1999 (9)
Airports served by scheduled flights in Sept/2014
106 airports served by scheduled flights in Sept/2014.
706 routes served by scheduled flights in Sept/2014.
Overview of Air Transport in BrazilRoutes and airports served by scheduled flights in Sept/2014
Airports serving State capitals (31)
Regional airports (75)
Route served by scheduled flight (706)
106 airports served by scheduled flights in Sept/2014.
706 routes served by scheduled flights in Sept/2014 (381 already served in 1999; 325 new routes).
639 routes served by scheduled flights in 1999 had ceased operations until Sept./2014.
Overview of Air Transport in BrazilComparison of routes served by
scheduled flights in 1999 and Sept/2014
Airports serving State capitals (31)
Regional airports (75)
Route served by scheduled flights in 2014 (706)Route served by scheduled flights in 1999 but not in 2014 (639)
Monthly number of Brazilian airports and routes served by domestic scheduled flights – from Jan. 1999 to Sept. 2014
Source: Civil Aviation Secretariat (with data provided by the National Civil Aviation Agency – ANAC)
Airp
orts
Rout
es
RoutesAirports
Overview of Air Transport in Brazil
20002001
20022003
20042005
20062007
20082009
20102011
20122013
20142015
20162017
20182019
20202021
20222023
20242025
20262027
20282029
20302031
20322033
20342035
Passengers on Brazilian airports
(departures + connections + arrivals) – 2000-2012)
68.4 million
5.1 million
193.1 million
15.8 million
429.3 million
65.5 million
614 million
Passenger Forecast – Brazilian Airports (total; includes regional airports)
Passenger Forecast – Regional Airports
5.2% py
9% py9% py
10% py
Overview of Air Transport in Brazil
Passengers on Brazilian airports
(departures + connections + arrivals) – Estimated from
2013 to 2035
113 million
1. Overview of Air Transport in Brazil
2. “Programa de Investimentos em Logística: Aeroportos” (Logistics Investment Program: Airports)
3. “Programa de Desenvolvimento da Aviação Regional” (Regional Aviation Development Program)
4. Further issues
PROGRAMA DE INVESTIMENTOS EM LOGÍSTICA: AEROPORTOS (PIL-Aeroportos)
Logistics Investment Program
Development began in July 2011; announced in December 2012.
Main goals:
• Improve airport infrastructure and services quality;• Increase access of the Brazilian population to air transport;• Rebuild the regional aviation network.
Establishes a set of public policies regarding:
• Airport concession;• General aviation;• Airport slots;• Regional aviation:
o Investments;o Partnerships between Federal, State and Municipal governments;o Subsidies.
PROGRAMA DE DESENVOLVIMENTO DA AVIAÇÃO REGIONAL (PDAR)
Regional Aviation Development Program
Logistics Investment Program - Airports
PROGRAMA DE INVESTIMENTO EM LOGÍSTICA: AEROPORTOS (PIL-Aeroportos)
Logistics Investment Program
BACKGROUNDThe creation of the Secretariat of Civil Aviation – SAC, in March 2011, as a Special Secretariat of the Presidency of the Republic – thus holding the status of Ministry –, and of the Fundo Nacional de Aviação Civil – FNAC (National Fund for Civil Aviation) was a turning point for the development and implementation of the Política Nacional de Aviação Civil – PNAC (National Civil Aviation Policy), approved by Decree n. 6,780 of Feb. 18th, 2009. It provided the adequate institutional framework and financial resources to invest in air transport.
Development of the PIL-Aeroportos program began in July 2011. It was triggered by recurring complaints that airlines could not adequately serve some destinations – particularly in the Amazon region – due to innapropriate airport infrastructure. The basic question that was posed was
Which airports should receive investments on infrastructure?
Logistics Investment Program - Airports
PROGRAMA DE INVESTIMENTOS EM LOGÍSTICA: AEROPORTOS (PIL-Aeroportos)
Logistics Investment Program
Which airports should receive investments in infrastructure?During the 2nd semester of 2011, a preliminary study was undertaken by SAC to select airports that could possibly receive investments in order to provide adequate infrastructure for scheduled flights. The following variables were considered:
• Availability of scheduled air services;• Distance to an airport where scheduled air services were provided;• Access to other modes of transport (roads, railways and waterways);• Tourism destination;• Urban hierarchy (“Região de Influência das Cidades - REGIC”, a study by the
IBGE – Brazilian Institute of Geography and Statistic);• Demographic statistics;• Municipal GDP (Gross Domestic Product).
The first draft was completed by the end of 2011 and deemed appropriate to be presented and discussed with other organizations (inside and outside the Federal Government).
Logistics Investment Program - Airports
PROGRAMA DE INVESTIMENTOS EM LOGÍSTICA: AEROPORTOS (PIL-Aeroportos)
Logistics Investment Program
Throughout 2012, SAC presented and discussed the selection of airports with the following organizations:
• 26 State Governments and the Government of the Federal District;• National Congress (Senate and House of Representatives);• Ministry of Tourism – MTur;• Ministry of Defense/Command of Aeronautics – MD/COMAER;• Ministry of Planning, Budget and Management – MPOG;• Ministry of Finance – MF;• National Civil Aviation Agency – ANAC;• Planning and Logistics Enterprise – EPL;• Civil House of the Presidency of the Republic – CC/PR;• Brazilian Federal Court of Accounts – TCU;• Airline associations (National Airlines Syndicate –SNEA; Brazilian Regional
Airlines Association – ABETAR)• Embraer.
Logistics Investment Program - Airports
PROGRAMA DE INVESTIMENTOS EM LOGÍSTICA: AEROPORTOS (PIL-Aeroportos)
Logistics Investment Program
It was particularly important to discuss with State Governments the list of airports that would receive investments, not only to make it compatible with their social and economic planning but because 631 of the 719 public aerodromes/airports are operated by States or Municipalities (directly or indirectly). SAC invited officials from each State government to present a list of airports of their respective State (other States’ airports were not presented), after which they were granted enough time to evaluate and submit suggestions.
Airlines also submitted a list of airports they expected to serve.
In general, the list presented by SAC matched both the States’ and the airlines’ planning and few changes were needed. This process, although time-consuming, provided the PIL-Aeroportos with a greater degree of legitimacy.
Logistics Investment Program - Airports
Region AirportsNorth 67Northeast 64Midwest 31Southeast 65South 43TOTAL 270
On December 20th, 2012 a list of 270 was presented at the announcement of the PIL-Aeroportos program.
The estimated investment will ammount to R$ 7.3 billion (US$ 2.92 billion).
The following maps show the regional airports selected.
Logistics Investment Program - Airports
Set/2014
106 airports served by scheduled flights in Sept/2014.
204 of the 270 regional airports are not served by scheduled flights.
Airports serving State capitals (31)
Regional airports with scheduled flights (66)
Regional airports without scheduled flights (204)
Logistics Investment Program - Airports
State Airports
Acre 4
Amazonas 25
Amapá 2
Pará 24
Rondônia 6
Roraima 3
Tocantins 3
TOTAL 67
ACRE
AMAZONASPARÁ
TOCANTINS
RORAIMA
AMAPÁ
RONDÔNIA
NORTH
Logistics Investment Program - Airports
State Airports
Alagoas 2
Bahia 20
Ceará 9
Maranhão 11
Paraíba 3
Pernambuco 9
Piauí 7
Rio Grande do Norte
2
Sergipe 1
TOTAL 64
MARANHÃO
PERNAMBUCO
RIO GRANDE DO NORTECEARÁ
PIAUÍ
BAHIA
PARAÍBA
ALAGOAS
SERGIPE
NORTHEAST
Logistics Investment Program - Airports
State Airports
Goiás 10
Mato Grosso 13
Mato Grosso do Sul 8
TOTAL 64
MATO GROSSO DO SUL
GOIÁS
MATO GROSSO
DF
MIDWEST
Logistics Investment Program - Airports
State Airports
Espírito Santo 4
Minas Gerais 33
Rio de Janeiro 9
São Paulo 19
TOTAL 65
MINAS GERAIS
ESPÍRITO SANTO
RIO DE JANEIRO
SÃO PAULO
SOUTHEAST
Logistics Investment Program - Airports
State Airports
Paraná 15
Rio Grande do Sul 15
Santa Catarina 13
TOTAL 43
SANTA CATARINA
PARANÁ
RIO GRANDE DO SUL
SOUTH
Logistics Investment Program - Airports
After the announcement of the PIL-Aeroportos program, SAC pursued the following line of action:
• Hire Banco do Brasil (BB) to manage the projects and investment. BB is in charge of delivering the Estudos de Viabilidade Técnica – EVT (“Technical Feasibility Studies”), the Estudos Preliminares de Engenharia – EP (“Engineering Preliminary Studies”) the Anteprojetos de Aeroporto Regional – AP (“Regional Airport Preliminary Projects”) to SAC.
• Create standard projects for small, small-medium and medium airports:
• Establish partnerships with local governments (State and Municipal) for the management and operation of regional airports:
o Federal Government funds building and maintenance;
o Investments are standardized by airport size;
o Agreements with State and Municipal governments for maintenance and operation;
PROGRAMA DE INVESTIMENTOS EM LOGÍSTICA: AEROPORTOS (PIL-Aeroportos)
Logistics Investment Program
Logistics Investment Program - Airports
PROJECT STAGES Technical Feasibility Studies
Engineering PrelimaryStudies
Regional AirportPreliminary Projects
Logistics Investment Program - Airports
1. Overview of Air Transport in Brazil
2. “Programa de Investimentos em Logística: Aeroportos” (Logistics Investment Program: Airports)
3. “Programa de Desenvolvimento da Aviação Regional” (Regional Aviation Development Program)
4. Further issues
BACKGROUND
The proposal of subsidies to airlines as a way to increase the number of airports served by scheduled services was part of the Logistics Investment Program (PIL-Aeroportos) announced in Dec. 2012. Discussions concerning the primary aspects of a subsidy program were held concurrently to the selection of regional airports that were to receive investments in infrastructure, and involved mostly organizations that are part of the Federal Government.
On January 2013, SAC put forth a Public Consultation (Consulta Pública nº 02/2013) detailing such proposal. Organizations and persons were granted one month to send their suggestions, all of which were to be analysed by SAC. A public hearing was held in Brasilia to receive suggestions by anyone attending. Most suggestions were made by airlines.
PROGRAMA DE DESENVOLVIMENTO DA AVIAÇÃO REGIONAL (PDAR)Regional Aviation Development Program
Regional Aviation Development Program
BACKGROUND
The proposal presented reasons why a subsidy program was needed; its main goals; its scope; elegibility criteria; a formula for calculating the subsidy; the validity time frame; the expected results; government and airlines obligations; oversight and information provision; and penalties due to infringement of obligations.
SAC initially proposed that the subsidy program would last for 2 years and could be continually renewed for the same period. Airlines would not be obligated to apply for subsidies, but in doing so would be required to provide information on a monthly basis. Evidences of wrongdoing by an airline would result in investigation and possibly the its exclusion of the program, as well as further legal actions defined by law.
PROGRAMA DE DESENVOLVIMENTO DA AVIAÇÃO REGIONAL (PDAR)Regional Aviation Development Program
Regional Aviation Development Program
PUBLIC CONSULTATION N. 2/2013
Public Consultation n. 02/2013 described the following goals for the subsidy program:
1. Increase the Brazilian population’s access to the air transport network by reducing the average airfare;
2. Integrate remote communities to the civil aviation national network in order to facilitate the transport of people and goods, such as food supplies and pharmaceuticals;
3. Integrate regions with lower economic potential to medium- and large-sized urban centers;
4. Facilitate the access to regions with tourism potential; 5. Increase the number of passengers on already-existing routes; and6. Increase the number of routes and cities served by scheduled passenger
flights
PROGRAMA DE DESENVOLVIMENTO DA AVIAÇÃO REGIONAL (PDAR)Regional Aviation Development Program
Regional Aviation Development Program
PUBLIC CONSULTATION N. 2/2013
Routes would be classified considering the number of passengers (departures + connections + arrivals) on either the departure or destination airport (or both). Low-density routes were to be defined as any route in which either one or both the departure or destination airport received less than 50,000 passengers on a certain year, whereas medium-density routes would be those on which these airports had more than 50,000 and less than 800,000 passengers. High-density routes would be those in which both the departure and destination airports had more than 800,000 passengers/year or those serving State capitals. Only low- and medium-density routes would subsidized.
The proposal presented on Public Consultation n. 2/2013 is not binding. It serves as general guidelines that may be considered when drafting the final proposal for the creation of the subsidy program.
More information on Public Consultation n. 2/2013 can be found at http://www.aviacaocivil.gov.br/acesso-a-informacao/arquivos-pdf/proposta-de-modelo-de-subsidios2013.pdf (Portuguese only)
PROGRAMA DE DESENVOLVIMENTO DA AVIAÇÃO REGIONAL (PDAR)Regional Aviation Development Program
Regional Aviation Development Program
PROVISIONAL MEASURE N. 652, OF JULY 25TH, 2014
Following Public Consultation n. 2/2013, discussions were held between SAC and the Ministry of Finance (MF), the Ministry of Planning, Budget and Management (MPOG), and the Civil House of the Presidency of the Republic (CC/PR) as to what legal instrument would be used to provide the Federal Government with the possibility to grant subsidies to regional flights – a provisional measure (Medida Provisória) or a bill (Projeto de Lei) –, and to which aspects should be included and which ones should be detailed on a Presidential Decree.
Opting between a provisional measure and a bill was a key issue during those debates. Although both eventually become a law once aproved by a majority on the Senate and the House of Representatives, there are substantial differences concerning the legislative process which they must go through.
PROGRAMA DE DESENVOLVIMENTO DA AVIAÇÃO REGIONAL (PDAR)Regional Aviation Development Program
Regional Aviation Development Program
PROVISIONAL MEASURE N. 652, OF JULY 25TH, 2014
Main differences and similarities between provisional measures and bills:
PROGRAMA DE DESENVOLVIMENTO DA AVIAÇÃO REGIONAL (PDAR)Regional Aviation Development Program
Medida Provisória (MP) Projeto de Lei (PL)
May be presented only by the President in cases of great urgency and relevance. Can not legislate in matters as nationality, crime, political rights, budget, etc.
May be presented by any member of Congress, by the President, by the Supreme Court (STF), and by the People (with 1% of the total voters’ signatures) and concern any topic.
Comes into force on the date of its publication. Comes into force after being approved by Congress (on both the Senate and the House of Representatives), signed by the President, and published.
Must be approved by a simple majority on each House of Congress. Must be approved by a simple majority on each House of Congress.
Must be voted within 60 days (a 60 day extension is granted only once) or it looses its effectiveness.
Does not need to be voted within a given time frame.
Is analysed only in one especially-created Commision (Comissão Mista) formed by members of the Senate and of the House of Representatives.
Is analysed by at least 3 different commisions on each House of Congress.
Blocks all voting if – having been approved by the special comission – is not voted after 45 days of being submitted by the President.
Does not block any voting if not voted.
Regional Aviation Development Program
PROVISIONAL MEASURE N. 652, OF JULY 25TH, 2014
The draft proposal of Provisional Measure n. 652/2014 was subject to lenghty discussions involving mostly Government organizations throughout 2013 and 2014 – almost all of which were consulted when drafting the PIL-Aeroportos program (State governments were not involved this time). The final proposal was signed by the President in July 25th, 2014, thus coming into force when published on July 28th. One must note that it does not grant any right to subsidies before it is regulated by a Presidential Decree. The PM creates the Programa de Desenvolvimento da Aviação Regional (PDAR, Regional Aviation Development Program).
The provisional measure was sent to Congress and must be approved by both Houses before November 24th, 2014, or it looses its effectiveness. Representatives and Senators proposed 85 amendments to the PM until August 5th. Due to general elections in Brazil in October 5th and 26th, Congressional activities were halted. On November 4th, the special commission resumed its activites and a public hearing was held in order to discuss the matter. SAC analysed the 85 amendments and submited this analysis to Congress.
PROGRAMA DE DESENVOLVIMENTO DA AVIAÇÃO REGIONAL (PDAR)Regional Aviation Development Program
Regional Aviation Development Program
PROVISIONAL MEASURE N. 652, OF JULY 25TH, 2014
The comission invited the Minister of Civil Aviation (SAC); the Director-President of the National Civil Aviation Agency (ANAC); the President of INFRAERO; the Chief of the Operations Subdepartment of the Department of Air Traffic Control (DECEA); the President of the Brazilian Airlines Association (ABEAR); and the President of the National Syndicate of Aeronauts (SNA). A representative of regional airlines was present and was granted the right to speak.
Following the public hearing, Federal Government officials and the members of the Comission discussed which aspects of the proposal and of the amendments should be included on the vote of the Comission’s “Relator”, a member designated to analyse the proposal.
On November 5th, the Comission’s “Relator” issued his vote. Members of the Comission requested time to analyse it, and the following meeting is scheduled for November 11th.
PROGRAMA DE DESENVOLVIMENTO DA AVIAÇÃO REGIONAL (PDAR)Regional Aviation Development Program
Regional Aviation Development Program
PROVISIONAL MEASURE N. 652, OF JULY 25TH, 2014
The Comission’s “Relator” rejected 11 amendments on the grounds of not being related to aviation at all. A total of 16 amendments were rejected for not being related to regional aviation, despite being related to aviation in general. 2 amendments were considered unconstitutional. 7 amendments were rejected because they concerned matters already allowed by law. This totals 36 amendments being rejected without further analysis, since they did not relate to the subsidy program. The remaining 49 amendments were further analysed by the “Relator” and 15 were totally or partially approved on his vote. He voted for the following changes on the proposal:
• Establish a limit of 20% of the FNAC (Fundo Nacional de Aviação Civil) that can be used to provide subsidies to airlines. In 2015 that should ammount to R$ 840 million (or US$ 336 million).
• Have the definition of “regional airport” on the law, not on a Presidential Decree: up to 600,000 passengers/year for airports located in regions other than the Amazon; up to 800,000 passengers/year for airports located on the Amazon.
PROGRAMA DE DESENVOLVIMENTO DA AVIAÇÃO REGIONAL (PDAR)Regional Aviation Development Program
Regional Aviation Development Program
PROVISIONAL MEASURE N. 652, OF JULY 25TH, 2014
The “Relator” also voted for the following changes on the proposal:• 50% of the subsidies must be granted to the operation of new routes.• Limit the subsidies to 50% of the available seats on na aircraft. That means if a 70-seat
aircraft is loaded with 60 passengers, the calculus for the subsidy will consider only 35 passengers.
• Airlines receiving subsidies must not have debts related to airport and air navigation fees.
• Establish a priority for flights on the Amazon.• Payments to airlines must be done on a regular basis.• SAC must publish an annual report with full information concerning the program.• The subsidy program is valid for 5 years, pending one extension for 5 more years if
deemed necessary.• No taxes are to be levied on the subsidies.
PROGRAMA DE DESENVOLVIMENTO DA AVIAÇÃO REGIONAL (PDAR)Regional Aviation Development Program
Regional Aviation Development Program
FURTHER ACTIONS
Congress must vote the Provisional Measure n. 652/2014 until November 24th, otherwise it will not be valid anymore. Once approved by Congress and signed by the President, a Presidential Decree regulating the new Law must be issued.
Key aspects concerning the contents of the Decree are pending the approval of the Provisional Measure, and thus can not be confirmed at the present time.
More information on legislative process of the the Provisional Measure n. 652/2014 may be found at http://www.senado.gov.br/atividade/materia/detalhes.asp?p_cod_mate=118341 (Portuguese only).
PROGRAMA DE DESENVOLVIMENTO DA AVIAÇÃO REGIONAL (PDAR)Regional Aviation Development Program
Regional Aviation Development Program
1. Overview of Air Transport in Brazil
2. “Programa de Investimentos em Logística: Aeroportos” (Logistics Investment Program: Airports)
3. “Programa de Desenvolvimento da Aviação Regional” (Regional Aviation Development Program)
4. Further issues
FOREIGN INVESTMENT IN BRAZILIAN AIRLINES
The Código Brasileiro de Aeronáutica – CBA (Law n. 7,565/1986) allows for a maximum of 20% of foreign investment with voting rights in Brazilian airlines. Other activities such as mining, oil and gas, telecommunications, energy, banking, insurances, airports, ports, railways and roads have no limits to foreign investment. This limit – established in 1966 during the military ruling in Brazil –, restricts access to capital, credit and knowledge to Brazilian airlines. There are a number of proposals to increase it to 49% or abolish it altogether.
FUEL PRICES
Fuel accounted for 37,3% of the operational costs of Brazilian airlines in 2013, up from 30,1% in 2009. Federal and State taxes – especially the Imposto sobre Circulação de Mercadorias e Serviços (ICMS)* – impose a heavy burden to airlines, particularly in remote areas where fuel prices tend to be higher. Although many States have unilateraly decide to reduce the ICMS charged on aviation fuels, others such as São Paulo – which accounts for close to 40% of all air traffic in Brazil – still keep a 25% tax. Federal Government can not impose a limit to ICMS. States would have to agree to establish such a limit. Alternatively, that could be achieved thru a Resolution by the Senate.
Further issues
Public Organizations:• Secretaria de Aviação Civil (SAC)/Secretariat of Civil Aviation – http://www.aviacaocivil.gov.br• Presidência da República (PR)/Presidency of the Reopublic – http://www.planalto.gov.br • Câmara dos Deputados/House of Representatives – http://www.camara.gov.br • Senado Federal/Senate – http://www.senado.gov.br • Agência Nacional de Aviação Civil (ANAC)/National Civil Aviation Agency – http://www.anac.gov.br • Empresa Brasileira de Infraestrutura Aeroportuária (Infraero) – http://www.infraero.gov.br• Empresa de Planejamento e Logística (EPL)/Planning and Logistics Enterprise – http://www.epl.gov.br • Ministério do Turismo (MTur)/Ministry of Tourism – http://www.turismo.gov.br • Ministério da Fazenda (MF)/Ministry of Finance – http://www.fazenda.gov.br • Ministério da Defesa (MD)/Ministry of Defense – http://www.defesa.gov.br • Tribunal de Contas da União (TCU)/Federal Court of Accounts – http://www.tcu.gov.br • Departamento de Controle do Espaço Aéreo (DECEA)/Department of Air Traffic Control –
http://www.decea.gov.br
Private Organizations:
• Empresa Brasileira de Aeronáutica S.A. (Embraer) – http://www.embraer.com.br • Associação Brasileira das Empresas Aéreas (ABEAR)/Brazilian Airlines Association – http://www.abear.com.br • Sindicato Nacional das Empresas Aéreas (SNEA)/National Airlines Syndicate – http://www.snea.com.br
LinksThroughout 2012, SAC presented and discussed the selection of airports with the following organizations:
• 26 State Governments and the Government of the Federal District;
• National Congress (Senate and House of Representatives);• Ministry of Tourism – MTur;• Ministry of Defense/Command of Aeronautics –
MD/COMAER;• Ministry of Planning, Budget and Management – MPOG;• Ministry of Finance – MF;• National Civil Aviation Agency – ANAC;• Planning and Logistics Enterprise – EPL;• Civil House of the Presidency of the Republic – CC/PR;• Brazilian Federal Court of Accounts – TCU;• Airline associations (National Airlines Syndicate –SNEA;
Brazilian Regional Airlines Association – ABETAR)• Embraer.
¡Gracias!Thank you!Obrigado!
Gustavo Pacheco Fortes FleuryAir Services Policy Manager
Secretariat of Civil Aviation of the Presidency of the RepublicSecretariat of Civil Aviation Regulatory PolicyDepartment of Air Services Policy
+55 (61) [email protected] Setor Comercial Sul-B (SBS-B), Quadra 9, Lote C, 6th floor, 70308-200 Brasília, DF, Brazil