MercoPress. South Atlantic News Agency

Brazil opens 100% ownership of Brazilian airlines to foreign investors

Previously, non-Brazilians were limited to 20% of shares. The decision occurs in the midst of a bankruptcy proceeding filed by Avianca Brasil.

Outgoing President Michel Temer issued an executive order that allows foreign groups to own 100% of a Brazilian airline. Previously, non-Brazilians were limited to 20% of shares. The decision occurs in the midst of a bankruptcy proceeding filed by Avianca Brasil.

Before issuing the order, Temer consulted the future Minister of Finance Paulo Guedes, who gave his blessing after discussing the matter with president-elect Jair Bolsonaro.

The order needs to be converted into law by the Brazilian Congress within 120 days. Temer already discussed the matter with House Leader Rodrigo Maia (DEM) and Senate leader Eunício Oliveira (MDB), to gain their support.

Secretary of Commercial Aviation Dario Rais Lopes thinks that 2019 will have a better outlook for the aviation industry, and a perspective of cheaper airfare.

Commercial airlines operating Brazil had mixed reactions. Latam's position was favorable, with a statement saying that the new decree will bring more money to Brazil. Azul positioned itself against the measure. Gol and Avianca didn't reply requests for comments.