Passengers leaving from Brazil get cheaper airfares boost

April 23rd, 2009

Photo: J & J, flickr

Photo: J & J, flickr

Greater competition between airlines flying from Brazil is on the way, after the country’s civil aviation authority (ANAC) approved a move to ditch minimum airfares.

Until now the cost of tickets for passengers leaving Brazil had to meet minimum price criteria, but this will be phased out gradually within 12 months.

From this week, airlines should be able to cut prices by 20%.

After three months the discount allowed will be 50%, another three months later, this will rise to 80% and at the end of twelve months minimum prices will disappear.

Last year, ANAC adopted a similar move for flights from Brazil to South America, which was completed on September 1 last year.

Prices of domestic flights were deregulated in 2005.

Although airlines are not obliged to cut prices, officials expect consumers will benefit from promotions, especially in periods of low demand.

Before the new rules came into force, the minimum cost of a flight to the United States was $708, the United Kingdom $869, Bahrain $1,267 and Japan $2,046.

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