Brussels, 21/03/2011 (Agence Europe) - On Friday 19 March, negotiators from the EU and Brazil initialled a comprehensive agreement on air transport services. The agreement aims at developing a gradual and reciprocal opening up of EU and Brazilian aviation markets and is expected to enter into force before the Olympic Games in 2016, which Brazil will be organising. According to the European Commission: all EU airlines will be able to freely operate direct flights to anywhere in Brazil from anywhere in Europe; new business opportunities will be created for European cargo operators flying to Brazil and beyond; administrative burdens on airlines will be reduced. Both sides have agreed to cooperate closely on a wide range of areas including safety, security, application of competition law, air traffic management, environment, consumer protection and social and labour issues.
According to an economic impact assessment study, full market opening with Brazil could generate up to €460 million in consumer benefits a year. The potential for traffic growth is estimated at 335,000 additional passengers in the first year. Brazil is by far the largest air transport market in South America with around 4.5 million passengers carried on flights between the EU and Brazil annually. Brazil is also among the fastest growing aviation markets in the world. In a press release published last Friday, the Commission pointed out that in 2010, the Brazilian air transport market grew by 23% compared to 2009. The new agreement will be a major step in the opening of markets. It creates new investment opportunities and improves the commercial and operational environment for EU carriers operating into Brazil. The EU has already comprehensive air transport agreements in effect with the United States, Canada, Switzerland, Morocco, the Western Balkan countries, Georgia and Jordan. (A.By./transl.fl)