Brazilian air travel: the future is private

In 2019, the Brazilian government handed over the reins to 13 port terminals, 12 airports, a roadway, and a railway to the private sector. Not to mention three oil auctions and sales of assets worth a combined BRL 100 billion. This year, the Jair Bolsonaro administration hopes for more of the same. A total of 22 airports, two railways, seven roadways, and numerous port terminals are expected to be controlled by private companies by the end of the year.

The Brazilian Report sat down with economist Dyogo Oliveira, chairperson at the National Association of Airport Administrators (Aneaa), who formerly served as Planning Minister and president of the Brazilian Development Bank (BNDES), under Michel Temer. He talked about the upcoming privatizations, and what is ahead of Brazil in terms of infrastructure projects.

Note: This interview has been edited for brevity and clarity.

You served under four presidents and helped in the transition to the current administration. How would you assess the current economic agenda, which seeks to empower the private sector?

Airport concessions began with the Dilma Rousseff administration, and continued under Michel Temer and now, with Jair Bolsonaro. They are not ideology-based, instead they are a pragmatic way to provide a public service with quality and efficiency, enabling investments. That’s the way forward for the airport sector, as well as other infrastructure areas. I have no doubt that private infrastructure management will be present, regardless of the political path Brazil takes in the future.

But Brazil has earned a reputation as a country that is highly dependent on its government.

Privatizations should be demystified. As a matter of fact, private control over infrastructure services is the rule, not the exception. It has been the case for centuries. Brazil’s first electricity supply was already private —it was owned...