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.
The 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.