Government creates working group to study reducing the price of aviation fuel

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Kerosene is identified as one of the biggest costs for the sector; minister talks about ‘rigorous discussion’ of the topic. Airlines are experiencing difficulties and the government is analyzing alternatives. The Minister of Mines and Energy, Alexandre Silveira, determined this Monday (5) the creation of a working group to study ways to make aviation fuel cheaper. Minister of Mines and Energy, Alexandre Silveira TV Globo/Reproduction According to g1, the measure was taken after a meeting with the Minister of Ports and Airports, Silvio Costa Filho, this afternoon. The working group will study ways to reduce the price of aviation kerosene (QAV), identified by airlines as one of the biggest costs in the sector, with an impact on ticket prices. The results will be presented at the next meeting of the National Energy Policy Council (CNPE), in March. ‘Rigorous discussion with Petrobras’ Last week, Silveira had said that the government should have a “rigorous discussion with Petrobras”, which produces most of the aircraft used in Brazil. The sector has accumulated debts of around R$45 billion, due to the Covid-19 pandemic, which reduced passenger movement and increased airline costs. Gol files for judicial recovery in the USA The situation worries the government, which is discussing a way to help the airlines. Some options are studied: the National Civil Aviation Fund (FNAC) and the National Bank for Economic and Social Development (BNDES). Understand the financial difficulties of airline companies and solutions studied by the government Using the FNAC to grant loans depends on changes in legislation and the 2024 budget, which clashes with the economic team’s intention to reduce the fiscal deficit to zero this year. This Monday (5), the Minister of Finance, Fernando Haddad, stated that “there is no help with money from the Treasury” and ruled out public spending to help airlines.

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