Presidential Decree raises from 20 to 49% the cap on foreign ownership of voting shares in airlines
On March 1, 2016, president Dilma Rousseff signed the Presidential Decree No. 714 that raises to 49% the cap on foreign ownership of voting shares in brazilian airlines and amends the Brazilian Aviation Code (Law nº 7.565 of 1986) to that effect.
The decree had been in discussion for over a year at the Civil Aviation Office (SAC) and, after the Ministry of Finance gave the green light, the government chose to raise the upper limit of foreign capital in national airlines, which is currently set at 20%.
With the decree, the government expects to make easier for foreign new companies to enter the market, thus increasing competition conditions - which consequently make the price of flight tickets drop -, and ensuring international routes as much chance of expanding as the domestic ones.
The Presidential Decree came into force on its date of publication.
The full content of this Law is available at: