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President of Petrobras says that reducing the price of QAV is not the only solution to the crisis of airlines in Brazil

Written by Bruno Teles
Published 17/05/2023 às 08:00
Updated 16/05/2023 às 19:58
President of Petrobras says that reducing the price of QAV is not the only solution to the crisis of airlines in Brazil
PHOTO: aviation kerosene distribution

The high price of airline tickets in Brazil has been one of the main concerns of the airline industry and consumers.

And, against this backdrop, the president of Petrobras, Jean Paul Prates, stated in an interview with CNN Brazil that reducing the price of aviation kerosene (QAV) is not the only solution to the problem, which goes far beyond that.

According to Prates, the question of air transport involves several structural factors, and not just the price of fuel. Although he recognizes that the QAV is one of the important components in the price of tickets, he points out that it is necessary to tackle all the bottlenecks in the sector to make airline tickets more accessible to the population.

O president of Petrobras states that, as a senator, he asked the Administrative Council for Economic Defense (Cade) to investigate airlines, of which there are only three in the country and have very similar schedules and prices.

This lack of competition in the Brazilian airline industry may be one of the factors contributing to the rise in ticket prices.

Prates also highlighted that the price reduction announced by Petrobras on November 16th it did not include aviation kerosene. Gasoline had a drop of R$0,40 per liter, while diesel had a reduction of R$0,44 per liter and cooking gas of R$0,69 per kilo.

In Brazil, the aviation kerosene price There is a readjustment every first day of the month and it is one of the main costs of airlines, corresponding to around 30% of total expenses. With the reduction of QAV, airlines could reduce ticket prices, but, according to Prates, it is necessary to face the sector's structural issues to change the reality of air transport in the country.

In a scenario where the air sector faces an unprecedented crisis due to the Covid-19 pandemic, many people have avoided flying and airlines are also facing financial difficulties. In this sense, the reduction of airfare price could be an important measure to encourage people to fly again and to stimulate the sector's economy.

So, although the reduction in the price of aviation kerosene can help lower the cost of airline tickets, it is necessary to address structural issues in the sector, such as limited competition among airlines, in order to make tickets more affordable for Brazilian consumers. However, both reducing the price of QAV and investigating the lack of competition in the airline industry can be important steps towards a solution to the problem.

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Bruno Teles

I talk about technology, innovation, oil and gas. I update daily about opportunities in the Brazilian market. With more than 3.000 articles published in CPG. Agenda suggestion? Send it to brunotelesredator@gmail.com

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