"It is not crazy to think of having a domestic operation," said Mauricio Sana Saldaña, Flybondi’s chief commercial officer.

Flybondi already operates international flights between Brazil and Buenos Aires. On Friday, it is launching service from São Paulo, and in March will begin flying from Porto Alegre.

Saldaña said it is looking at a handful of other Brazilian cities, including Recife.

The Brazilian government is trying to convince foreign airlines like Flybondi to add competition to a highly concentrated domestic market. But so far no foreign airline has expressed clear plans to set up shop here.

The owner of Spain's Air Europa obtained a license last year to explore domestic flights within Brazil but has yet to make any announcements.

By Marcelo Rochabrun