Provisional Measure No. 925/2020 – Emergency measures for Brazilian civil aviation due to Covid-19 pandemic

Declared a pandemic by the World Health Organization on March 11, the novel coronavirus (Covid-19) is already having a huge social and economic impact worldwide.

Given the current scenario, on March 19, 2020, Provisional Measure No. 925/2020 (“Provisional Measure”) was issued to provide emergency measures for Brazilian civil aviation due to the pandemic. Such aid measures are a key factor to ensuring the continuity of company operations in the airline industry, through the extension of the deadline for airline ticket refunds to consumers, as well as the postponement of payment of airport concession fees.

According to the text of the Provisional Measure, with regard to airport concession contracts signed by the Federal Government, the fixed and variable fees due in 2020 can be paid until December 18, 2020.

In addition, the Provisional Measure also establishes that for air transport contracts signed until December 31, 2020, the deadline established for airline ticket refunds will 12 (twelve) months, from the date of the flight, observing the rules of the contracted service and maintaining material assistance, in accordance with current regulations.

The Provisional Measure also sets out that if consumers accept a credit from the airline to be used within the 12 –month period, there will be an exemption from contractual penalties.

Demarest’s Aviation Law team are entirely available to provide further clarification on this matter.