Spain’s Globalia has suspended its plans to start domestic operations in Brazil due to the coronavirus pandemic, just over a year after Brazil’s aviation regulator approved Globalia Linhas Aéreas' application for an air services licence.

Juliano Noman, who heads Brazil's civil aviation authority (Agência Nacional de Aviação Civil - ANAC), on May 19 said that Globalia had requested ANAC suspend the process, but not cancel it, according to a Reuters report.

Tourism and transportation company Globalia, which owns Spanish mainline carrier Air Europa (UX, Palma de Mallorca), was the first foreign-owned company to attempt to establish a wholly owned Brazilian airline after the country allowed foreign companies to control locally flagged carriers. On May 22, 2019, the ANAC board of directors approved Globalia Linhas Aéreas Ltda’s concession to operate regular passenger services in Brazil.

“With the approval, and after issuing the Air Operator Certificate, the company will also be able to operate in the Brazilian domestic market,” ANAC said at the time.

Air Europa was already operating on international routes departing and arriving in Brazil, from Salvador International and Recife airports to Madrid Barajas. Prior to the COVID-19 crisis, it had hoped to have its Brazilian subsidiary flying before the end of 2020.

Another carrier, Spain’s Air Nostrum (YW, Valencia Manises), in February revealed plans to establish a Brazilian carrier, with operations to start around the second half of 2020, but nothing has been heard since.

According to the ch-aviation capacities module, for the week May 25 to 31, Azul Linhas Aéreas Brasileiras controls nearly 47% of the weekly seating capacity market (207,810 seats/week) in Brazil, followed by GOL Linhas Aéreas Inteligentes with 29%, and LATAM Airlines Brasil with 22%.