Brasília – The Brazilian government is looking into revising the conditions for foreign capital ownership in airlines, currently restricted to a maximum 20% stake. According to the minister of the Brazilian Civil Aviation Secretariat, Moreira Franco, three options are being considered: one is to raise the maximum stake to 49%, another is to eliminate restrictions on foreign stakes altogether, and the third one is to require for two thirds of voting rights to be held by Brazilian stakeholders.
The latter option, according to the minister, is currently adopted for Brazilian defence industry companies. On being asked if this may be the government’s policy for airlines, he replied: “I hope so.” The changes must be passed at the National Congress.
The changes in airline governance are intended to help the companies, which are allegedly experiencing financial difficulties due to the international economic scenario. Government officials should meet this week to discuss the matter, before the proposals are submitted to the airlines.
*Translated by Gabriel Pomerancblum
