New Provisional Measure Removed Prior Limitation Of 20% Of Foreign Capital In Brazilian Airlines

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...