Bolsonaro Creates NAV Brasil, The First State-Owned Company of His Government

Bolsonaro Creates NAV Brazil, Company That Will Take Over the Responsibilities of Infraero. It Is the First State-Owned Company Created by the Government Since 2013, When Former President Dilma Created ABGF

Jair Bolsonaro created the first state-owned company of his government, NAV Brazil Air Navigation Services, responsible for airspace control in the country. The president’s sanction for the creation of the federal state-owned company is in this Wednesday’s, November 20, edition of the Official Gazette of the Union. The concession auction of Infraero ended with revenue of R$ 2.4 billion in initial grant.

NAV Brazil is the first public company created by the Union after 2013, the year when former president Dilma Rousseff created the Brazilian Agency for Managing Guarantee Funds and Guarantees (ABGF).

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The company created by the government is the result of the split from Infraero — a company that manages public airports such as Congonhas and Santos Dumont, located in São Paulo.

The new state-owned company will be linked to the Ministry of Defense, through the Air Force Command, and will take over approximately 2,000 employees who already work in Infraero’s air traffic control area.

Although article 23 of the law, which allows the transfer of all Infraero employees in case of “extinction, privatization, reduction of workforce or financial insufficiency,” was maintained by Bolsonaro, the transfers of employees may exceed this number.

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Infraero employees are public servants under the CLT regime. Despite this, when the government began privatizing airports, it granted job security to employees until the end of 2020.

Currently, Brazil has 22 private airports, including Guarulhos, Campinas, Brasília, Galeão, Confins, Natal, Fortaleza, Porto Alegre, Salvador, and Florianópolis. Twelve were auctioned this year, divided into regional blocks in the Northeast, Midwest, and Southeast.

Before the presidential sanction, the special secretary for Privatization at the Ministry of Economy, Salim Mattar, who works to reduce the number of state-owned companies, criticized the creation of NAV.

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Mattar said that the company was “a thing of the past government” and that its creation was not guaranteed. Deputies from the Novu Party called the secretary for guidance. They tried to obstruct the proposal but were unsuccessful.

From January to September, the government sold assets estimated at US$ 23.5 billion, or R$ 96.2 billion. This includes divestments – sale of subsidiaries linked to parent companies, such as TAG and BR Distribuidora, from Petrobras – airport concessions, port terminals, and a railway stretch, in addition to oil fields.

So far, the Bolsonaro government has not privatized any federal state-owned company under direct Union control.