Association

Statement: IATA Welcomes Decision to Allow Ancillary Revenues in Brazil

IATA

The International Air Transport Association (IATA) welcomes the decision by the National Congress of Brazil to uphold the presidential veto on baggage allowance.

This establishes the regulatory framework under which airlines in Brazil can continue to offer a wider choice to passengers, as these can individually choose which additional services they would like to pay for or not.

"One of the major challenges in Brazil is ensuring that airlines have a regulatory environment aligned with global best practices. Countries that have promoted aviation by modernizing their regulatory and legal framework, avoiding over-regulation and protectionism, have created ideal conditions for the growth of the industry, benefiting everyone, both socially and economically. Congress upholding the presidential veto is an important step in Brazil's alignment with international standards," said Peter Cerdá, IATA's Regional Vice President, The Americas

Furthermore, the attractiveness of the Brazilian market will increase, especially at a time when the country is trying to entice foreign investment in the airline industry.

Competition brings benefits to air passengers. Experience from around the world shows that a stronger market is much more effective at encouraging innovation and creativity, than excessive regulations. This creates conditions for growth, which benefits a country's economy and its people. In Brazil aviation contributes US$ 18.8 billion to the country's GDP and supports some 839,000 jobs.



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