Senate Approves Measure Allowing Full Foreign Ownership of Brazilian Airlines

Airlines must also allow provide a baggage allowance on domestic flights

Daniel Carvalho FILIPE OLIVEIRA
Brasília and São Paulo

Brazil’s Senate approved this Wednesday (22) a measure that will allow foreign companies to hold 100% share of capital in Brazilian airline companies. National airline companies must also return to offering free baggage on domestic flights.

The measure now goes President Jair Bolsonaro, who has already signaled his support,  for his approval.

Before leaving office last year, ex-president Michel Temer issued a decree extinguishing the 20% limit on foreign capital in Brazilian airlines. (Foto: Pedro Ladeira/Folhapress, PODER) - Folhapress

Even before the Senate vote, the National Agency of Civil Aviation (ANAC) approved an exploratory license for Globalia Linhas Aéreas Ltda, the group that manages Air Europe, to offer regular passenger service.

Globalia Linhas Aéreas Ltda became the first foreign airline company to solicit a license to establish a foreign-owned company for regular passenger operations.

On late Wednesday, the International Association of Air Transport (IATA) declared in a letter that it was vehemently against the return of a minimum baggage allowance.

According to the association, the return of this allowance will make it difficult for low-cost airlines (like Norwegian Air and Sky Airline, which began traveling to in 2018) to enter the market. It will also make domestic and international flights more expensive. 

Translated by Kiratiana Freelon

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