"There is a lack of airlines in Brazil," says the Minister of Ports and Airports. An agreement aims to change that.

Brasilia - Designed to expand the presence of airlines among neighboring countries, a new agreement signed between Brazil, Argentina, Chile, and Paraguay to open a "single aviation market" in South America aims to promote the presence of multiple airlines on the continent, similar to Europe, Africa, and Oceania.

That's what the Minister of Ports and Airports, Tomé Franca, said in an interview with NeoFeed , after signing the agreement in Asunción, the Paraguayan capital, on Tuesday, July 14.

“It’s clear that there’s a shortage of airlines in Brazil, and to address that we need to reduce regulation, while of course ensuring safety and cost-effectiveness in operations. Safety is non-negotiable,” says Franca.

The minister explained that this memorandum, which established guidelines for the construction of a "single South American sky," already applies to Brazil, Paraguay, and Argentina.

However, it foresees a year-long negotiation within a working group formed by the four countries to increasingly expand international flights between these routes. The initiative should also soon include the participation of Uruguay.

Based on the agreement that expands the single airspace, an Argentinian company, Aerolineas, for example, which operates flights to Brazil, will also be able to fly between Brazil and Paraguay. Or Paranair, from Paraguay, will also be able to fly from Brazil to Argentina. Today, this is not possible and airlines are only authorized to fly to a single country (round trip).

Franca also understands that, with this initiative, it will be possible to attract, initially to these three countries, other South American airlines that do not yet operate in all of them. This is the case with low-cost carriers, such as the Chilean companies JetSmart and Sky Airlines.

The idea is to discuss with civil aviation authorities from other neighboring countries a "harmonization of regulations" and seek symmetrical conditions of competition among airlines operating on the continent.

"The goal is that we can have a market in the future, a single market for South America, with a healthy competitive environment," says the minister.

The aim of these governments is to stimulate more competition, generating better prices, more services, and more connected cities. Currently, the countries of the European Union, Oceania, and Africa already have a single market of this kind.

“We want to copy this idea that has led, for example, to the European market having 200 airlines today. In Brazil, we have three airlines [Latam, Gol and Azul] in a territory that is almost twice the size of Europe,” says Franca.

This agreement is known in the aviation industry as the "seventh freedom" and allows for a greater level of freedom for commercial flights between international routes.

The minister further clarifies that, throughout these 12 months of the working group, the countries will discuss common rules, with the aim of encompassing all South American airlines in the future.

"Anyone operating in Brazil needs to comply with labor laws, the consumer protection code, and have the same conditions to ensure healthy competition. You can't take an airline with more precarious working conditions, for example, and bring it here to Brazil and expect it to compete on the same footing," he points out.