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Aviation fuel and judicialization are major problems in the sector, says ANAC

The high cost of aviation fuel and the excess of lawsuits filed against airlines are today the biggest problems for companies in the sector, in the opinion of the president of Brazil’s Civil Aviation Agency (ANAC, in Portuguese), Juliano Noman, in a Valor and O Globo webinar. Noman noted that aviation fuel is now the main individual cost in the airlines’ production chain, accounting for 30% to 40% of company costs. The matter would be dealt with this year, but because of the covid-19 pandemic, it was dropped. He also highlighted the excess of lawsuits filed against companies, driven mainly by the new apps that file lawsuits on behalf of airline customers in cases of flight delays and cancellations. “This creates an absurd cost for airlines, and such cost, at the end of the day, goes to the ticket price”, said Noman. – https://valor.globo.com/empresas/noticia/2020/12/14/combustivel-de-aviacao-e-judicializacao-sao-grandes-problemas-do-setor-diz-anac.ghtml