City Hall signs cooperation agreement worth around R$300 million with RIOgaleão to promote Rio’s airport sector

On Tuesday (January 09), Mayor Eduardo Paes signed a Technical Cooperation Agreement with the State Government and RIOgaleão worth approximately R$01 million with the aim of proposing solutions to promote the Rio airport network, in addition to studying possible regulatory scenarios to improve coordination between the city's airports. One of the objectives of the partnership will be to provide incentives through a Municipal Fund to promote aviation in the city.

And to attract new routes and flight frequencies to Tom Jobim International Airport (Galeão), R$270 million will be invested over three years. The City of Rio and the State government will invest R$120 million, while RIOgaleão, the concessionaire responsible for operating the airport, will allocate R$150 million.

– The ordinance that limits flights at Santos Dumont Airport has already come into effect, and we are beginning to regain the importance of Galeão. These simple measures have already allowed international and domestic flights to Galeão to return to pre-pandemic levels, and the trend is only set to grow. Today, we are announcing the creation of a type of investment fund to promote Rio, with part private resources and part from the City Hall and state governments, worth around R$300 million. This will allow for greater promotion of the city, allowing us to bring in more international airlines and domestic flights. And here we have the three Brazilian airlines announcing their commitment to the resumption of Galeão – said Eduardo Paes.

The partnership will be carried out through the Municipal Secretariat for Urban and Economic Development (SMDUE). The expectation is to make the city of Rio even more attractive to airlines that have already operated at Tom Jobim International Airport or that are interested in operating there, in addition to incorporating into the capital of Rio de Janeiro a local promotion practice carried out by the world's main tourist destinations.

– We want to promote Rio de Janeiro as a destination through airlines, especially international ones. They usually have their own local agencies to promote their destinations and routes. Our idea to increase the frequency of new international airlines and also the opening of new routes is to promote Rio de Janeiro as a destination through these airlines’ channels. With the help of RIOgaleão, we will have these companies promote Rio de Janeiro abroad. We believe that this will give us more control, including over frequency, knowing which results are best for each airline – said the Secretary of Urban and Economic Development, Chicão Bulhões.

The proposal is that the agreement generates financial and regulatory incentives to attract large airlines, companies focused on leisure and encourage companies that already operate in Galeão to increase the frequency of flights, boosting direct and indirect revenue for the city through leisure and business tourism.

– This is the result of our union. The state government and the Rio City Hall understood the importance of Galeão for the state’s economy, not only for tourism, but for the entire economy of Rio. We overcame the narrative that strengthening Galeão is killing Santos Dumont. Quite the opposite. We need balance so that both survive and we have an important air flow to Rio – highlighted the State Secretary of Tourism, Gustavo Tutuca.

In return for the support provided by the agreement, all incentives already offered by the concessionaire will also be available, such as tariff discounts for landings, stays and marketing incentives.

– This is the beginning of Galeão’s takeoff. Rio de Janeiro has the potential to become a hub for domestic and international flights. The growth of the air network is already happening. Last week, we operated, on average, between 300 and 310 daily domestic and international flights, with around 43 thousand passengers per day. We have already recovered practically all of the international destinations, now we just need to increase the frequency and the availability of seats. I have no doubt that this will happen throughout 2024 – declared the president of RIOgaleão, Alexandre Monteiro.

According to a study commissioned by the concessionaire RIOgaleão, every R$1,00 of value generated by international tourism provides R$1,46 in indirect and induced effects. Therefore, the joint action of the City Hall, the State Government and Tom Jobim International Airport aims at the economic and social development of the city of Rio de Janeiro.

Representatives from the country's three largest airlines attended the ceremony in support of the initiative. President of Gol Linhas Aéreas, Celso Ferrer, highlighted the recognition that the company receives annually from the people of Rio.

– The greatest return we can give is precisely by bringing flights to the state and city of Rio, which occupies a central position in the company's strategy. We are reorganizing the flight network with our partners, betting once again on Rio de Janeiro – highlighted Ferrer.

Director of International Relations at Azul Linhas Aéreas Brasileiras, Fábio Campos recalled that since the company was created, 15 years ago, Rio de Janeiro has always been in focus.

– Aviation is the thermometer of everything that happens in the country. When the country is doing badly, the airlines are the first to feel it. The same happens when the country starts to do well. I am very happy to be here today presenting good numbers, because if aviation is doing better, Rio is doing better. We are going to start reaping the fruits of all this joint work. We have five times more flights per day leaving Galeão to various regions of Brazil – celebrated Campos.

CEO of Latam Brasil, Jerome Cadier explained the work the company has carried out in favor of Rio de Janeiro.

– It is obvious that each company has a different vocation, each one can collaborate differently according to its characteristics. In Rio, since last year, Latam has grown 25% compared to the previous year. And when we look specifically at Galeão, we expect that in the first quarter of 2024 it will be 120% larger than it was in the same quarter in 2023 – highlighted Cadier.

Category:

• Urban and Economic Development
• News

January 9, 2024

Appointments: Technical Cooperation Agreement Tom Jobim International Airport Galleon City Hall of Rio RIOgaleão flights