Inefficiency in the procurement of air tickets by the federal government in Brazil: dimension, characteristics, and evolution

Abstract

Travel represents a substantial expense for the Federal Government of Brazil. In 2023, R$ 803 million was spent on purchasing airline tickets for travel by employees and other people linked to the government. Despite its size, the public air ticket procurement system is inefficient, leading the government to pay above-market prices. This article aims to analyze the difference between the market price of airline tickets and the price paid by the Federal Government of Brazil in the period between 2014 and 2023. Federal Government spending on airline tickets was analyzed based on microdata on business trips available on the Transparency Portal. Market prices for airline tickets were estimated based on microdata from the National Civil Aviation Agency (ANAC). During the period analyzed, the Federal Government purchased 3.5 million airline tickets. For each seat, on average, the government paid R$ 347 above the market ticket purchase price. The average additional price over the 10 years analyzed was 76%, reaching 98% during the covid-19 pandemic period. Departments that acquire a greater volume of seats tend to get better prices. A positive correlation also exists between the additional price and the total number of seats purchased on each origin-destination segment.