Are a step closer the United States and Brazil to an open skies air transport agreement, that would remove restrictions on the number of flights in one of the most attractive Latin American markets October 2015.
The planned deal would allow more flights from coming October and phase in more access to Brazil's two busiest airports in São Paulo and Rio de Janeiro by October 2015, in time for the summer Olympics in Rio in the following year.
The United States has already decided 100 open skies offerings including a recent landmark Pact with Japan, but Brazil classified along with China and Russia in a handful of major markets where airline operations have been closely regulated.
The offers can airlines to bring to international routes and also include provisions for cooperation in the field of security and safety grant. An open skies agreement is for the U.S. Justice Department airline alliance partners antitrust immunity cooperate on schedules, fares and marketing required.
The State Department said on Monday it had agreed on the framework towards an open skies agreement with Brazil. The United States has signed similar deals with several Latin American countries, but the Grand Prize is given Brazil that occur in the face of the country on the world stage and its growing middle class. The Brazilian Government is looking for business and tourism created by the expected increase in traffic to benefits.
The two sides agreed also to build signed a contract for services to open that most elements would contain the an open skies agreement in 2008.
The Business Department without changes will probably be signed by Brazil, said Bruno Dalcomo, head of international relations in Brazil civil aviation authority or ANAC, negotiated with the United States
Once the contract is signed, Mr Dalcomo said ticket prices to fall, passengers to increase and more connections between cities in Brazil and the USA Brazil expected.
Brought the first Pact in 2008 already progress in this respect, although prices have not fallen because demand very much, especially on the appreciation of the Brazilian real is, said Mr Dalcomo.
TAM S.A., is the only Brazilian airline the flagship carrier VARIG fly which in the United States at the moment after the decline while it five U.S. airlines on these routes. TAM has a 30% stake in this market, which slightly less than the largest operator, said American Airlines Dalcomo. The other U.S. Airlines flies to Continental Airlines Inc.; are Brazil Delta Airlines Inc.; United airlines and US Airways Group Inc.
The plan is the changes over five years to seasons "Visibility" airline, already on the market Mr Dalcomo offer loud. No other Brazilian airline ANAC say is that it is interested in flying to the United States, he said. It can join get harder for new vehicles to the market because competition is expected to increase, as this business progress, said Mr Dalcomo.
TAM will examine whether Alliance after its airlines remain star proposed merger with LAN or move belonging to OneWorld Group on the Chilean air carrier
Colombia was to reconcile the 100th country an open skies agreement with the United States last month the Brazil deal how is introduced in the course of time. Chile, Panama and Peru had similar agreements with the USA in place for more than a decade.
-By Doug Cameron and Matthew Cowley.
Write toDoug Cameron at doug.cameron@dowjones.com
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