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Petrobras President Says Reducing Jet Fuel Prices Is Not the Only Solution to Brazil’s Airline Crisis

Written by Bruno Teles
Published on 17/05/2023 at 08:00
Updated on 16/05/2023 at 19:58
Presidente da Petrobras afirma que redução do preço do QAV não é a única solução para a crise das companhias aéreas no Brasil
FOTO: distribuição de querosene de aviação
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The High Price Of Airfares In Brazil Has Been One Of The Main Concerns Of The Aviation Sector And Consumers.

And, in light of this scenario, 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 issue of air transport involves several structural factors, not just the price of fuel. While he acknowledges that QAV is one of the important components of airfare prices, he emphasizes that it is necessary to address all the bottlenecks in the sector to make airfares more accessible to the population.

The President Of Petrobras claims that, as a senator, he requested that the Administrative Council for Economic Defense (Cade) investigate the airlines, of which there are only three in the country and which offer very similar schedules and prices.

This Lack Of Competition In The Brazilian Airline Sector May Be One Of The Factors Contributing To The Rise In Airfare Prices.

Prates also highlighted that the Price Reduction Announced By Petrobras on November 16 did not include aviation kerosene. Gasoline saw a drop of R$0.40 per liter, while diesel had a reduction of R$0.44 per liter and cooking gas dropped by R$0.69 per kilogram.

In Brazil, the Price Of Aviation Kerosene is adjusted every first day of the month and is one of the main costs for airlines, accounting for about 30% of total expenses. With a reduction in QAV, airlines could lower airfare prices, but according to Prates, it is necessary to tackle the structural issues of the sector to change the reality of air transport in the country.

In a scenario where the Aviation Sector is facing an unprecedented crisis due to the Covid-19 pandemic, many people have avoided flying and airlines are also struggling financially. In this sense, a reduction in Airfare Prices could be an important measure to encourage people to fly again and to stimulate the economy of the sector.

Therefore, although the Reduction In The Price Of Aviation Kerosene may help lower airfare costs, it is essential to address the structural issues of the sector, such as limited competition among airlines, to make tickets more accessible to Brazilian consumers. However, both reducing the price of QAV and investigating the lack of competition in the aviation sector can be important steps towards a solution to the problem.

Bruno Teles

Falo sobre tecnologia, inovação, petróleo e gás. Atualizo diariamente sobre oportunidades no mercado brasileiro. Com mais de 7.000 artigos publicados nos sites CPG, Naval Porto Estaleiro, Mineração Brasil e Obras Construção Civil. Sugestão de pauta? Manda no brunotelesredator@gmail.com

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