Brazil 2014: Brazilian authorities threaten to allow foreign company to operate internal flights

The Brazilian government is considering allowing foreign airlines to operate internal flights in order to balance the market during the World Cup in Brazil (from the 12/06 to the 13/07/2014) announced Gleisi Hoffman, chief of staff of Dilma Rousseff, President of Brazil, on the 05/01/2014. "We have not taken a decision as yet, said Gleisi Hoffman, but if there is abuse, that is one of the measures being considered".

Currently, only Brazilian companies are allowed to operate interior flights during the 2014 World Cup. Nevertheless, the government fears an "abusive" price increase during the event.

"We want prices to yield profit to businessmen, but prices must be fair during the major events. We hope we will reach an agreement through dialogue. If that is not possible, we will use the instruments available to make prices reasonable," said the chief of staff.

TAM, the main Brazilian airline, has asked the ANAC (National Civil Aviation Agency), to modify 40% of its route network during the 2014 World Cup. Currently, the company operates 800 flights a day with 120 aircraft in 42…