Voa Brasil does not take off amid airlines asking for help

Almost a year after the first promises to launch “Voa Brasil”, which provides air tickets for R$200 each way for certain groups of passengers, the program has not yet taken off. And its implementation became even more difficult with the worsening of the crisis in the airline sector.

The idea arose right at the beginning of the government, when the Minister of Ports and Airports was Márcio França (PSB). With the replacement, Sílvio Costa Filho (Republicans), the ministry maintained the routine of promises, but the program remains on paper.

Launches of the program were scheduled for August, September and, more recently, February. According to the ministry’s press office, the announcement of the program will be made on a new date to be defined after Carnival. “We are looking for a date that is compatible with the agenda of everyone involved”, the ministry informed the People’s Gazette.

The program must be aimed at INSS retirees who receive up to two minimum wages and students from the University for All Program (ProUni). Costa Filho said in January that, depending on the results, he will look to expand it in collaboration with airlines.

Voa Brasil’s objective is to include 2.5 to 3 million new passengers in the Brazilian aviation market, covering those who have not traveled for more than a year or have never used commercial aviation. Last year, 112 million passengers were transported.

Experts are critical of the program. The attempt to “democratize” the airline sector involves risks: by benefiting some groups of consumers, it may lead to increased prices for other passengers.

This is an unfavorable moment for the airline sector

The postponement of the “Voa Brasil” program coincides with an unfavorable moment for aviation. In the fourth quarter of 2023, the Consumidor.gov.br platform registered 82.5 complaints for every 100 thousand passengers transported, an increase of almost 10% compared to the same period of the previous year.

Another problem was the sharp rise in air ticket prices. In one year, they rose by an average of 26%, according to the last IBGE measurement, in January.

The National Civil Aviation Agency (Anac) points out that the average price of domestic air fare was, in November, R$702.70. At the time, more than half (51.7%) of the tickets sold in 12 months cost up to R$500. And 7% over R$1,500.

One of the “villains”, according to airlines, is fuel. According to the Brazilian Association of Airlines (Abear), aviation kerosene (QAV) accounts for 41% of operating costs and expenses.

According to the Anac database, the average price of QAV was R$5.37 per liter in November 2022. It dropped to R$3.41 per liter in July 2023. And then it reached R$4.40 in November.

However, the president of Petrobras, Jean Paul Prates, maintains that the QAV is not a major factor in the crisis in the areas. Days ago, he said that the state-owned company lowered the price by 41% over the course of a year, until the beginning of February.

The issue is treated as relevant to the government. Despite the Minister of Finance, Fernando Haddad, saying that there will be no resources from the Treasury for airline companies and Petrobras stating that it will not lower the price of fuel to help the segment, the Minister of Mines and Energy, Alexandre Silveira, announced on Tuesday (6), the creation of a working group with the National Energy Policy Council (CNPE) to study ways to reduce the cost of QAV.

Another problem faced by airlines is the judicialization of passenger complaints. According to Minister Sílvio Costa Filho, 8% of the world’s legal proceedings against aviation companies occur in Brazil. The demands would absorb around R$1 billion per year from the segment.

At the end of January, Costa Filho announced that the federal government intends to create a financing fund of up to R$6 billion for aviation. The creation would be being coordinated with Haddad and the president of the National Bank for Economic and Social Development (BNDES), Aloizio Mercadante.

Airlines say relief fund is not enough

According to columnist Lauro Jardim, from “The globe”, in private conversations the airlines claim that they cannot participate in Voa Brasil until they receive assistance from the government – ​​starting with the financial package of R$6 billion so that they can capitalize and renegotiate debts.

Even the package is considered insufficient by the companies. In an interview with “Folha de S.Paulo”, Jerome Cadier, president of Latam, the largest Brazilian airline by market share, said that the measure will not solve the structural problems that make the ticket more expensive. He calls for measures to reduce operational costs – such as fuel.

The most delicate situation is that of Gol, the second largest in Brazil in terms of market share, which in the third quarter had liabilities of R$33.3 billion and a negative net worth (difference between what it has and what it owes) R$17 billion, according to accounting statements sent to Anac.

The company filed for judicial recovery in the United States on January 25, in order to renegotiate its debts. It was the same strategy adopted by Latam, in the first half of 2020, due to the effects of the pandemic. The process was completed in November 2022.

Azul, the third largest Brazilian airline, chose to restructure its debt. The conclusion of the negotiations was announced in October 2022. According to the news agency Reutersjust with aircraft leasing there was a reduction in payments of R$1 billion per year.

A survey carried out by the president of the Latin American and Caribbean Air Transport Association (Alta), José Ricardo Botelho, shows that between 2010 and 2022 Brazilian airlines accumulated a loss of R$54 billion, with only three years of net profit (2010, 2017 and 2019).

In the first three quarters of last year, according to Anac, losses totaled R$1.5 billion. “We are facing a reality that requires immediate action to reverse the situation. And they are all sending out the same warning signals: operational costs, judicialization, legal security for investment and the absence of a strategic vision for an essential public service in a continental country like Brazil”, says Botelho.