Imagine a business traveler who could easily fly from Rio de Janeiro's centrally located Santos Dumont Airport (SDU) to Brasília, complete work within hours, and return. Now, that same traveler must use the more distant Galeão Airport (GIG), consuming additional time and effort. This change affects not just individual travel experiences but signals potential ripple effects across Brazil's aviation sector.
The International Air Transport Association (IATA) has expressed serious concerns about a resolution issued by Brazil's National Civil Aviation Committee (CONAC) on August 10, 2023. Effective January 2, 2024, the resolution will restrict scheduled commercial flights at Santos Dumont Airport to domestic destinations within 400 kilometers. While presented as an effort to balance operations between Rio's two airports, this policy may negatively impact Brazil's aviation industry and broader economy.
1. Restricted Route Options: Undermining Consumer Choice and Market Vitality
The most immediate consequence is the limitation of consumer choice. Santos Dumont Airport's prime downtown location makes it particularly convenient for business travelers and tourists. The restrictions force passengers to use Galeão Airport, increasing both travel time and costs.
This move contradicts fundamental market principles. Aviation thrives on market dynamics where airlines should determine routes based on operational conditions and demand, not government mandates. Approximately 60% of Santos Dumont's scheduled flights serve destinations beyond São Paulo-Congonhas and Brasília—routes unlikely to fully transfer to Galeão. Many passengers may consequently abandon air travel for alternative transportation, ultimately harming airline revenues.
2. Disrupting the Aviation Value Chain: Weakening Rio's Regional Connectivity
The restrictions extend beyond passenger inconvenience, potentially damaging the entire aviation ecosystem—including airlines, airports, ground services, catering, hospitality, and tourism sectors. Reduced passenger volume at Santos Dumont will decrease airport revenue and affect associated businesses.
More critically, the policy weakens Rio de Janeiro's regional connectivity. As a crucial hub linking Rio to other Brazilian cities, Santos Dumont's route limitations may diminish the city's competitiveness and negatively impact Brazil's national aviation network.
3. Violating International Standards: Risking Brazil's Legal Credibility
IATA warns that the restrictions breach international norms, potentially damaging Brazil's judicial reputation—a crucial factor for foreign investment. The aviation industry operates on global standards, and such policy shifts may harm Brazil's international standing while creating problematic precedents for regional aviation governance.
4. Reducing Market Appeal: Undermining Brazil's Business Climate
The measure introduces uncertainty that could deter aviation investment. The industry requires stable, predictable policies due to its long investment cycles and high operational risks. Arbitrary government intervention may discourage airline investment, ultimately hindering Brazil's aviation development and broader economic growth.
5. IATA's Appeal: Reconsidering the Resolution
As Peter Cerda, IATA's Vice President for the Americas, stated: "Passengers' right to choose destinations shouldn't be restricted by authorities dictating which routes an airport may serve. A thriving aviation sector depends on market dynamics—airlines should determine Santos Dumont's routes based on operational realities and passenger demand." IATA urges Brazilian authorities to reconsider the resolution to avoid damaging Rio's domestic and international air connectivity.
6. Policy Recommendations: Balanced Development Through Collaboration
To better balance both airports' development while protecting stakeholder interests, we propose:
- Enhancing Galeão's infrastructure: Improve operational capacity and passenger services through increased flight slots, upgraded facilities, and streamlined processes.
- Optimizing Galeão's transportation links: Develop efficient transit options like express rail, expanded bus routes, and reliable taxi services to reduce downtown travel time.
- Establishing distinct airport roles: Designate Santos Dumont for business travel and Galeão for international routes to minimize overlap.
- Strengthening airline engagement: Incorporate carrier feedback through consultations when formulating aviation policies.
- Creating a permanent coordination body: Form a government-airport-airline committee to address industry challenges collectively.
Restricting Santos Dumont's operations isn't the optimal solution. A comprehensive, market-responsive approach would better serve Rio's aviation ecosystem and Brazil's economic interests.