ANNOUNCEMENT 13 Dec 2018
The Brazilian Government increased the foreign ownership limit on airlines.
NUMBER OF INTERVENTIONS
Presidency of Brazil. Presidência de la República. Medida Provisória Nº 863 de 13 de Dezembro de 2018. Availabel at: http://www.planalto.gov.br/ccivil_03/_Ato2015-2018/2018/Mpv/mpv863.htm
Presidency of Brazil. Presidência de la República. Lei Nº 13.319 de 25 de Julho de 2016. Available at: http://www.planalto.gov.br/ccivil_03/_Ato2015-2018/2016/Lei/L13319.htm
On 13 December 2018, the Brazilian Government has adopted Provisional Measure 863/2018 revoking the restrictions on the participation of foreign capital in Brazilian air transport companies. As a result, the foreign ownership share allowed for this type of investments has been increased from 20% to 100% foreign participation.
Provisional Measure 863/2018 also revokes several restrictions concerning the entry and ownership of companies in the sector such as the elimination of the requirement of prior approval by the National Civil Aviation Agency of constitutive acts and of transfer of ownership interest.
Due to the nature of the new legislation, this measure has a temporary character for up to 120 days requiring the ratification of the Chamber of Deputies and the Federal Senate.