As World Cup approaches, Brazil alleges ‘abuse’ in flight pricing
As World Cup approaches, Brazil alleges ‘abuse’ in flight pricing
STEPHANIE NOLEN
RIO DE JANEIRO — The Globe and Mail
Published Tuesday, Jan. 07 2014, 7:01 PM EST
Last updated Tuesday, Jan. 07 2014, 7:05 PM EST
Brazil’s government and its domestic airlines have renewed a simmering feud over ticket prices in the run-up to the soccer World Cup later this year, with the government alleging price gouging and threatening to open up domestic routes to international airlines.
The industry counters that it is being crippled by poor government aviation policy, and cannot be accused of gouging since it is not making money.
The dispute speaks not only to Brazil’s economic woes, but to the larger problems facing the aviation industry in Latin America, where the domestic commercial sectors typically face challenges of high levels of government regulation and poor infrastructure.
The latest chapter in the fight between Brasilia and the domestic carriers began earlier this week when Gleisi Hoffmann, a cabinet minister who serves as a sort of national chief executive, below the President, gave a blunt interview to the national daily newspaper Folha de Sao Paulo in which she said the government is considering allowing foreign companies to operate on domestic routes during the World Cup because ticket prices are so high.
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http://www.theglobeandmail.com/report-on-business/international-business/latin-american-business/as-world-cup-approaches-brazil-alleges-abuse-in-flight-pricing/article16238951/