Consequences of the Changes in Competition of the Brazilian Sector of Commercial Aviation: A Study in the Scope of the Governmental Deregulation and the Entrance of the Company Goal

Abstract

This article aims is to analyze the consequences on the performance of the aircraft companies from the recent structural changes in the Brazilian sector of commercial aviation in domestic scope. These structural changes had been given in function of three specific events: the governmental deregulation of the sector as fall of barrier to new entrants; the performance of the Goal company as new entrant ones in the competition of the sector. The analysis is made by means of six main variables: (1) participation of market; (2) tariffs average; (3) exploitation of aircraft; (4) average expense for passenger; (5) operational edge; (6) amount of carried passengers. The adopted research methodology comprised a descriptive study using a quantitative approach and documentary analysis based on yearbooks of the ANAC for the period from 1997 to 2006. The main research results showed that new entrant Goal provoked significant change in the strategical and operational structure of the sector and the main competitors. In all variables analyzed the performance of the Goal surpassed its competitors. Other evidence is that Tam company is more strategically prepared to answer to the new threat and keeps the leadership in the sector. Other companies like Vasp and Varig, had revealed incapable to survive to the free competition of market.