Brazil Lower House Agrees End To Cap On Foreign Airline Ownership

Brazil's lower house of parliament has voted to end limits on foreign ownership of local airlines, changing a presidential decree, and extending a lifeline to carriers struggling with the impact of a recession and a slumping currency.

The lower house approved an amendment to a decree issued by suspended President Dilma Rousseff that originally increased the share foreign companies could own of local airlines to 49 percent from 20 percent. The amendment allows full foreign ownership of local airlines.

Interim President Michel Temer, who has replaced Rousseff while she stands trial in the Senate for allegedly breaking fiscal rules, has supported increasing foreign participation to help cash-strapped local airlines.

The decree still requires Senate passage before going for presidential signature.