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On Christmas Eve, President Jair Bolsonaro signed a decree to create the first state company of his government, NAV Brasil Serviços de Navegação Aérea, responsible for the control of the country’s airspace. It is the first public company created by the Union since 2013, when former President Dilma Rousseff created the Brazilian Agency for the Management of Guarantee and Guarantee Funds (ABGF).
The decree was published in an extra edition of the Official Gazette (DOU) on Thursday 24. The regulation formalizes the creation of the state company, which had already been approved by Congress. In November 2019, Bolsonaro signed the law that allowed the creation of the company. Linked to the Ministry of Defense, NAV Brasil was instituted through a provisional measure issued by the Michel Temer government at the end of 2018.
The creation of the state company represents a victory for the military wing of the government against an economic team with a privatizing bias.
Economy Minister Paulo Guedes has already admitted being frustrated with the progress of privatizations in the first two years of government. “There were some hesitations on the part of the ministries (in the privatization of state companies), in our own ministry there were failures,” Guedes said last month, without mentioning what those failures would be or which companies were encountering resistance from other government agencies. He simply admitted that he played “almost two years in defense” without attacking the privatizing front.
What is NAV?
NAV is the result of the spin-off of Infraero, which manages public airports such as Congonhas (SP) and Santos Dumont (RJ), and will maintain revenue from air navigation fees. It will be linked to the Ministry of Defense, through the Air Force Command, and will inherit about 2,000 Infraero employees who already work in the air traffic control area. But employee transfers can exceed that number.
“The creation of NAV Brasil SA reinforces the relevance of air navigation services, optimizing the organization of the air transport sector. It should be noted, however, that the measure does not represent an increase in the State’s participation in the economy, since the creation of the new entity results from the Spin-off of the current Infraero. It is a mere specialization, rationalization and efficiency gains, “the General Secretariat of the Presidency reported in a note.
In May last year, Bolsonaro even revoked the Temer deputy who created the state-owned company. The proposal was blocking the voting list, but was later picked up and approved like lightning. In the Senate, the NAV deputy was denounced by Senator Flávio Bolsonaro (PSL-RJ), the president’s “son 01”.
