Repeals foreign ownership restrictions of domestic airlines
25 Jun 2016
On 25 June 2016, Brazil’s President vetoed a law that would have abolished foreign ownership restrictions of domestic airlines. The veto also led to an unwinding of a lesser liberalization that had been passed through Provisional Measure No. 714, issued on 1 March 2016 and effective 2 March 2016. That measure had increased the foreign ownership cap in domestic airlines to 49 per cent, up from 20 per cent, and repealed the requirement that directors be exclusively Brazilian nationals. With the veto, the ownership limit that existed prior to March 2016 is anew effective. However, the issue remains under discussion in the government and a new proposal of air services liberalization is expected to be submitted to Congress.
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Type:
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Entry and establishment (Ownership and control)
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Industry:
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Services (Transportation and storage)
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