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Brazil: A Step Closer to Ending Limitation on Foreign Capital Investments in Airlines

Brazilian President Michel Temer will submit a bill to modify the Brazilian Aviation Code and allow foreign capital to own 100 percent of any Brazilian airline. If approved by Congress, the new ruling will end the existing 20 percent limitation. The measure comes as part of the Government’s strategy to boost tourism industry in the country. It is expected that removing the foreign capital restriction will allow more investments in aviation, thus increasing competitiveness and the availability of flights, which may reduce costs to the consumer.

Airplane, SunsetThe bill also purports to regulate the “electronic visa” for the United States, Canada, Australia and Japan, to facilitate entry of foreign visitors of those countries in Brazil.

When first announced, though, the executive government had intended to pass a provisional measure to effect these changes immediately upon publication. However, due to a previous settlement with Brazilian Senators in 2016, it was later decided by President Temer that a bill should be submitted for approval by Congress instead.

© Copyright 2017 Squire Patton Boggs (US) LLP

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About this Author

Maria Fernanda Loll, Squire Patton, Latin American International matters Lawyer, Brazil,
Associate

Maria Fernanda works closely with lawyers of the firm's Corporate Practice Group representing the interests of international clients in matters relating to Latin America.

Maria Fernanda has been acting as accountability officer for a multinational public chemical company, responsible for review and approval of third parties in Latin America. 

Her practice as a licensed attorney in Brazil included representing domestic and international clients in civil litigation and providing advice in commercial transactions for a...

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