It was published yesterday, the Provisional Measure 863 ("MP"), which amended the article 181 and revoked other provisions of the Brazilian Aeronautical Code. In practical terms, the MP removed the limitation of 20% of foreign capital in the Brazilian airlines.
Given this new scenario of Brazilian civil aviation, foreign investors will be able to draw new investments, which should lead to a review of existing corporate agreements with national airlines and, in the future, the creation of new airlines, leveraging competitiveness in the market and decreasing the commercial price of air tickets.
The MP has a period of validity of 120 days, but the future economic team that assumes in 2019 gave its endorsement to the current government, indicating that this scenario will consolidate through the legislative process. Click the link to check the full content [in portuguese] of the Provisional Measure.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.