Alert | Brazilian government sets guidelines for international air transport agreements

On August 6, 2018, the Ministry of Infrastructure issued governmental guidelines regarding the international air services market.

The Ministerial Ordinance No. 527 seeks to promote greater legal certainty and expand connectivity in Brazil, contributing to the conclusion of more “open skies” agreements, aiming to increase the number of international flights to and from Brazil.

One of the main measures brought by the Ministerial Ordinance is to establish as a principle for negotiating air services agreements ICAO’s 6th Freedom of the Air for all services and the 7th Freedom for air cargo services.

The Ministerial Ordinance not only covers other guidelines to facilitate the transportation of cargo and passengers in the international air services market, but also reinforces guidelines already established today, such as stimulating competition, multiple company designations, opening the international route framework, free determination of capacity and prevalence of the regime of pricing freedom.

In addition, Article 4 of the Ministerial Ordinance also reinforces that air service operations must be carried out in accordance with the Cape Town Convention and the Aviation Protocol, to which Brazil is already a signatory.

For more information about the matter, please contact João Paulo Servera, partner of the Aviation & Aircraft Finance Practice at Cascione, at jpservera@cascione.com.br.