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New bill could allow up to 100% foreign stakes in Brazilian airlines

12/06/2017 - 12:14

Iolando Lourenço reports from Agência Brasil

Due to a holiday next Thursday (June 15), the meetings of the Chamber of Deputies to deliberate on bills, resolutions, and amendments to the Constitution will begin Monday (June 12) and run until Wednesday (14) (typically they are held on Thursdays, Wednesdays, and Thursdays). The first item to be discussed on the floor is a bill to deregulate the air travel industry to increase the share of allowed foreign interest in Brazilian airlines from the current 20%.

Because of its priority status, that bill has to be dealt with before any other business pending before the house.

Deputies disagree as to the maximum interest foreign investors can have in an airline in Brazil, with some of them pressing for full foreign stakes to be permitted, and others saying it should be limited to 49%.

The government has said it hopes the deregulation will “increase competition and deconcentrate Brazil’s air travel industry.”
 
Also covered by the bill are an increase in the number of Brazilian cities and routes served by regular air transport, cheaper air fares, and improved connections between domestic air routes and international flights.

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Última atualização por - 05/11/2017 - 14:02

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