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Air tickets in Brazil tend to fall after Chilean airline entry, says …

by Ace Damon
Air tickets in Brazil tend to fall after Chilean airline entry, says ...

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19:48 25.09.2019 (updated 19:51 25.09.2019) Short URL

Chilean low-cost airline JetSmart will start selling tickets on Tuesday (24).

JetSmart received authorization in September from the National Civil Aviation Agency (Anac). The company expects to carry 100,000 passengers in the country during its first year.

JetSmart operates flights in Argentina, Peru and is the third largest domestic airline in Chile.

For economist Pedro Raffy Vartanian, professor at Mackenzie Presbyterian University, JetSmart's entry into the Brazilian market is beneficial to the consumer and can lead to lower airfares.

"The entry of new companies in the market tends to benefit consumers because the increased competition itself tends to put pressure on prices," he told Sputnik Brazil.

Although this is the trend, according to Vartanian, there is a limit to the drop in airfare prices.

"The entry of a new company tends to stimulate competition and this stimulus causes prices to fall, but prices also have a limit to fall, simply entering the market will not automatically cause prices to fall," pondered.

Pedro Raffy Vartanian explained that the price of a ticket is determined by supply and demand, but above all by the price of oil and fuels in the international market.

"Airline-specific activity is characterized by reasonable fluctuations in airfare prices, that is, high and low periods and this is very much related to international oil prices," he added.

In September, for example, attacks on the facilities of state-owned oil company Saudi Aramco sent oil prices soaring in a decade.

Opinions expressed in this regard may not necessarily coincide with those of Sputnik's editorial office.

. (tagsToTranslate) Chilean airline enters Brazil

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