INSUBCONTINENT EXCLUSIVE:
In Brazil, an intriguing story unfolds in the skies as foreign airlines hesitate to establish local operations, despite regulatory changes
facilitating market entry.Gilberto Peralta, the president of Airbus in Brazil, sheds light on this phenomenon, pinpointing unattractive
little room for new entrants to thrive.This oligopoly situation has stifled the anticipated competition that could drive down soaring ticket
prices and enhance service quality.Airfare in Brazil has surged, with prices increasing by about 36% this year and over 19% in the past
where per capita flight numbers lag behind other Latin American countries like Chile, Colombia, and Mexico.Challenges in Brazilian Aviation
SectorDespite the 2018 government reform allowing up to 100% foreign ownership of Brazilian airlines, the expected increase in foreign
airline operations has not happened.The stringent regulations, costly fuel, and judicial complications create a high-risk environment for
potential new airlines.Airbus aims to boost global production to 75 aircraft per month by late 2025 or early 2026, facing challenges.The
market dynamics and regulatory frameworks, impacting global aviation strategies.The situation in Brazil serves as a crucial case study of
how regulatory environments and market conditions can significantly impact international business expansion strategies.This underscores the
complexities of global market integration in the aviation sector.
