Brazil will allow foreign companies to hold a 49% stake in the country's airlines

Thursday, March 3rd 2016 - 05:22 UTC

Full article 3 comments

Gol, the airline with the biggest market share in Brazil, posted a loss of 2.13 billion Reais (US$532 million) in the third quarter of 2015.

The government of President Dilma Rousseff has raised from 20% to 49% the maximum stake that foreign companies can hold in Brazilian airlines, according to an executive order signed by the president and published on Wednesday in the Diario Oficial, Official Gazette

The executive order is temporary and its implementation depends on passage by Congress of airline legislation proposed by the Rousseff administration. Congress is expected to take up the legislation in the next four months.

Rousseff's executive order is aimed at generating “new sources of resources to capitalize the air transportation industry” amid the severe downturn in the sector, the Finance Ministry said.

Gol, the airline with the biggest market share in Brazil, posted a loss of 2.13 billion Reais ($532 million) in the third quarter of 2015.

Allowing greater foreign investment will lead to more competition, creating “beneficial effects for everyone in society,” the government said.

Categories: Economy, Brazil.

Tags: Brazil, Brazilean airlines, Gol Linhas Aereas Inteligentes S.A..

Top Comments

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ChrisR
Anybody contemplating this nonsense needs to read this first:
http://www.telegraph.co.uk/business/2016/03/02/only-the-imf-can-now-save-brazil/
Mar 03rd, 2016 - 01:59 pm 0
Jack Bauer
“Mr Fraga said the collapse is desperately sad because Brazil seemed to be on the right path under president Luis Inacio da Silva, or Lula as everybody knows him”.

Fraga's said it alright, Brazil “seemed” to be on the right path .......time has proven that no country can survive shitty populist governments headed by illiterate scumbags.....

But the fact that the fat cow has raised the maximum stake that foreign companies can hold in Brazilian airlines - from 20% to 49% - is the final admission that Brazil and a lot of its companies are broke.
Mar 03rd, 2016 - 04:58 pm 0
L0B0MAU
At this stage 49% is too little too late : http://money.cnn.com/2016/03/03/news/economy/brazil-recession-lower-middle-class/
Mar 03rd, 2016 - 05:05 pm 0

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