Temer Will Defend Airlines With 100% Foreign Capital

05/04/2016 - 09h58

The possible government of Michel Temer will support in Congress that foreign companies could have full control of Brazilian airlines without their countries offering the same to Brazil.

Since March, there is a provisional measure on the subject going through the Legislature, sent by Dilma Rousseff´s government.

It increases the limit of foreign capital in national companies from the current 20% up to 49% and allows it to reach 100%, but only in cases that include reciprocity agreements.

Temer's team wants to extend this permission and will work to change provisions by amendments, already presented, allowing 100% foreign capital ownership in any case.

The opening of the airline companies to foreign capital aims to attract investment to accelerate the resumption of growth.

Two of Temer's major allies, Moreira Franco and Eliseu Padilha, held the office of minister of Civil Aviation during Rousseff´s government and supported the full opening to foreign capital, position held by part of the staff. Total foreign ownership, however, had Rousseff's opposition.

This year, with a further decline in passenger numbers and growing losses at domestic companies, the Planalto Palace gave in, but with limits to participation.

The number of air passengers in the country is falling since August 2015. In March, it was 7.2% lower than in the same month in 2015, returning to the 2013 level, with 7.2 million passengers.

Translated by MARINA DELLA VALLE

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