Why should an airline ticket, which inherently includes the right to free choice, be forcibly bundled with unnecessary baggage fees? This question lies at the heart of a growing controversy in Brazil's aviation sector.
Forced Fees, Consumer Burden?
The International Air Transport Association (IATA), alongside the Brazilian Airlines Association (ABEAR), the Latin American and Caribbean Air Transport Association (ALTA), and the International Airlines Representative Council in Brazil (JURCAIB), have jointly addressed a letter to President Jair Bolsonaro expressing strong concerns about the proposed reinstatement of mandatory baggage fees in the MP 1089/21 amendment.
Danny Oliveira, IATA's Country Manager for Brazil, stated unequivocally: "Passengers should maintain the right to choose whether to pay for checked baggage." The coalition argues that forcing baggage fees on all passengers would inevitably increase ticket prices and negatively impact air travel demand.
Consider the business traveler who only needs a briefcase and minimal clothing, or the backpacker traveling light - both would be compelled to pay for services they don't require. This one-size-fits-all approach not only removes passenger choice but could also stifle the growth of low-cost carriers.
International Agreements at Risk
The proposed amendment raises deeper concerns about Brazil's compliance with international aviation agreements, particularly open skies accords that guarantee foreign airlines pricing freedom without government interference. Oliveira emphasized that the measure contradicts free market principles championed by the Organization for Economic Cooperation and Development (OECD), where Brazil actively participates.
"As an OECD participant, Brazil should uphold fair competition rather than distort market dynamics through administrative pricing interventions," Oliveira noted.
Investment Climate Concerns
The aviation groups warn that mandatory baggage fees would create legal uncertainty, potentially destabilizing Brazil's aviation investment environment. Investors require transparent, consistent policies to commit capital for long-term industry growth. Sudden regulatory changes that interfere with market pricing could erode confidence, leading to reduced investment and diminished competitiveness for Brazil's aviation sector.
Call for Presidential Veto
The coalition urges President Bolsonaro to veto what they characterize as a regressive policy. They outline several potential consequences if mandatory baggage fees are reinstated:
• Higher ticket prices as airlines offset mandatory fee losses
• Reduced market demand, particularly among price-sensitive travelers
• Disadvantaged low-cost carriers that rely on flexible pricing
• Deteriorating investment conditions affecting infrastructure and innovation
• Damage to Brazil's international reputation regarding trade agreements
The Case for Passenger Choice
Modern aviation markets increasingly cater to diverse traveler needs through flexible service options. Mandatory baggage fees represent a step backward from this consumer-centric approach. A healthy aviation ecosystem thrives on fair competition and choice - not government-imposed service bundling that harms both consumers and businesses.
Globally, baggage policies vary significantly. Many carriers in developed markets now "unbundle" services, separating baggage fees from base fares to offer greater choice and lower initial prices. As Latin America's largest aviation market, Brazil could benefit from adopting such progressive practices rather than reverting to outdated mandatory fees.
The aviation industry's appeal to Brazil's leadership represents more than a policy dispute - it's a defense of passenger rights and market principles that drive economic growth. The decision on MP 1089/21 will signal whether Brazil's aviation future embraces competition and choice or regulatory constraints that may limit its potential.