Raises foreign ownership limit on airlines from 20 to 49 per cent

Through Provisional Measure No. 714, issued on 1 March 2016 and effective 2 March 2016, Brazil relaxed restrictions on foreign ownership in domestic airlines. The measure – which needs to be confirmed by National Congress – increases the foreign ownership cap in domestic airlines to 49%, up from 20%, and repeals the requirement that directors be exclusively Brazilian nationals. Air service agreements concluded by Brazil may establish higher foreign ownership caps, subject to reciprocity.

• Type:

  • Entry and establishment (Ownership and control)

• Industry:

  • Services (Transportation and storage)

• Sources:

  • Diario Official Da Uniao, MPV 714/2016 (medida provisória), http://pesquisa.in.gov.br/imprensa/jsp/visualiza/index.jsp?jornal=1&pagina=1&data=02/03/2016, 02 Mar 2016
  • Portal Brasil, Governo reduz imposto sobre pacotes de viagens, http://www.brasil.gov.br/economia-e-emprego/2016/03/governo-reduz-imposto-sobre-pacotes-de-viagens, 02 Mar 2016
  • Reuters, Brazil raises foreign ownership limit on airlines to 49 pct, http://uk.reuters.com/article/uk-brazil-airlines-idUKKCN0W4186, 02 Mar 2016