The Brazilian Congress (Câmara dos Deputados) voted the PL 2724/15 last night, March 20th, 2019, which amends the Brazilian Aeronautical Code to lift the 20% limitation to foreigners holding voting shares of Brazilian air service companies. The PL 2724/15 allows foreign investor to hold up to 100% of the voting shares, although from beyond 49% prior approval from the CADE (Antitrust authority), the Ministry of Defense and the Aviation Authority – ANAC will be required. The bill still needs to be approved by the Brazilian Senate, before enacted by the Presidency.

The voting on the lower house was very expressive, with 329 votes in favor and only 44 against it, indicating solid political support and that the limitation should soon be lifted.

This development is line with other projects that move in the same direction, such as the Provisional Measure 863 (“MP 863”) enacted in December 2018. The MP 863 still needs to be confirmed by the Brazilian Congress and converted into Federal Law to become permanent. The MP 863 is effective until March 27th and can be extended until May 26th. Congress has not yet indicated when the voting will happen.

For more information, please reach to our Aviation Practice team at marketing@cascione.com.br.