In an effort to mitigate the pandemic’s impact on the airline industry, the Brazilian government announced it will buy flight tickets in advance, by creating a credit line to be discounted as the tickets are used. The announcement was made by Brazil’s Minister of Infrastructure, Tarcísio de Freitas, during a video conference hosted by Credit Suisse, as informed by Valor Econômico newspaper.
“Obviously, in this negotiation, we would try to get some discount compatible with the [financial] return of each flight, because there is no point in freeing the company now and killing it tomorrow,” he said, highlighting that the purchase must be made for a lower price than normal.
Airlines were one of the sectors most affected by the pandemic and are already negotiating with the government to overcome the crisis. One of the measures should involve the acquisition by the BNDES of corporate debentures, in an operation estimated at up to BRL 10 billion.