The number of lawsuits against Brazilian airlines increased by an average of 60% per year from 2020 to 2023. Of this amount, 10% of the lawsuits were filed by just 20 lawyers or law firms, which suggests a concentration of litigation. The data was presented this Thursday (12) by the Brazilian Association of Airlines (ABEAR) at the Voices of the Air Sector event, held at the Brazilian Infrastructure Institute (IBI), in Brasília (DF), and which was attended by authorities and experts. The study “Mapping on Predatory Litigation in the Brazilian Air Sector” gathers information on judicialization in the sector and how this market has grown in the country.
Data collected by the Spotlaw platform from the analysis of more than 400 legal proceedings across Brazil reveal the complexity and modus operandi of the main agents involved in the judicialization of the Brazilian aviation sector.
“The data we are presenting is alarming and reveals a worrying scenario for the Brazilian aviation sector. Today, 98,5% of lawsuits against airlines worldwide were filed in Brazil. This is not a natural consequence of operational problems, but rather the result of a sophisticated scheme involving several actors, from lawyers to technology companies and digital influencers. We need an integrated approach to address this issue, to ensure that the growth of the Brazilian aviation sector is not compromised by predatory and disproportionate practices,” said ABEAR president Jurema Monteiro.
Behind this scenario, there are signs of a structure that uses digital marketing tools to capture consumers in an irregular manner, in addition to involving the purchase of judicial credits and the illicit trade of travel vouchers.
Entities debate the topic
The president of ABEAR listed the points of confrontation to reduce the high number of lawsuits against the airline industry. They are:
- Improve communication between airlines and engers, highlighting information about enger rights and what to do in case of problems
- Strengthen customer service channels to quickly resolve complaints
- Inform engers of the correct and safe procedures for claiming rights, publicizing effective and less expensive mediation alternatives, such as Consumidor.gov.br
- Carry out sectoral agreements with Courts of Justice and educational actions with the Judiciary
- Harmonize with the Judiciary the understanding of presumed moral damages
- Legislative amendment to establish the understanding that non-pecuniary damage in air transport is not presumed
- Legislative amendment to provide for the concept of resisted claim, which consists of encouraging extrajudicial solutions
- Review of ANAC Resolution 400 to update regulation
For the director of the National Civil Aviation Agency (ANAC), Ricardo Catanant, excessive litigation is one of the barriers to the entry of new competitors. “This is a problem that affects not only domestic air transport, but also international air transport. Companies have stopped operating here due to the high cost of lawsuits. Foreign companies have already mapped out this issue and do not want to establish themselves here. We need to change this image because we need to attract these companies. How can we settle this issue, unify rules as is the case in some international treaties? This is the question we need to answer,” he said.
Along the same lines, the president of Aeroportos do Brasil (ABR), Fabio Rogério Carvalho, reinforced the understanding that the high number of litigation cases is a factor that prevents new airlines from coming to Brazil. “ABR fights hard for the arrival of new companies. But we always receive questions from those interested in operating in the country about the costs of litigation. The operator that has the aircraft flies anywhere. So, because of these costs, he doesn’t want to operate in Brazil and goes to another country. We have a litigation problem that is not only predatory, it is self-destructive.”
The Director of External Relations of the International Air Transport Association (IATA) in Brazil, Marcelo Pedroso, reinforced the importance of adopting structural measures to address the issue. “The wave of opposition to our commitment is very strong. We need to overcome this moment to move forward on the agenda.”
According to the executive director of the Brazilian Consumer Defense Association (PROTESTE), Henrique Lian, the search for rights is strongly linked to Brazilian culture. “When the Consumer Defense Code was launched, the idea was created that consumers need to fight for their rights. And this tends to grow more and more. What do I see as the way forward? Investing in conciliation.”
Representative of the Federal Public Prosecutor's Office, Federal Prosecutor Anna Carolina Resende Garcia, defended the creation of a protocol of actions that can be implemented by airlines before the demands reach the Judiciary. “This protocol has already been used successfully by other sectors. Improving dialogue is also a key point,” she emphasized.
“Hosting an event of this magnitude shows that we are on the right track, fostering debate to improve the aviation sector’s agenda,” said IBI CEO Mario Povia.
How does the customer acquisition scheme work?
According to the “Mapping of Predatory Litigation in the Brazilian Airline Sector,” social media profiles are evolving into large technology companies, financed by international investment funds. These profiles are transformed into digital platforms that, through aggressive advertising, offer services to many engers, most of whom have no problems with their flights.
After identifying these engers, a sales funnel process begins. The cases are separated and directed to employees of these companies, who the engers to “acquire” the rights to take action against the airline. The entire process is conducted in an extremely efficient manner, with the promise of ease and quick profit.
After acquiring the rights to action, the platforms the data on to partner lawyers, who file lawsuits on behalf of the consumers who have ceded their rights. The lawyers' goal is to reach agreements quickly and in the most advantageous way possible. These agreements have high financial potential and increase the platforms' profits.
In the operation, the platforms sell the ticket segments obtained through vouchers to agents in the tourism sector, quickly multiplying the investment made in the purchase of share rights.
Read also
- Azul expands its fleet of Airbus A330-200s, which will be used on flights to the United States and Europe
- Navegantes Airport plans to have almost 200 extra flights due to Oktoberfest 2024
- The countdown for Air flights in Salvador has begun
Street: ABEAR
