Brazilian President Vetoes Airline Ownership Changes

July 26, 2016

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Brazilian interim President Michel Temer vetoed a provision of a bill allowing foreign investors to own up to 100 percent of Brazilian airlines, according to a note published in Brazil's official government newspaper.

The veto only affects one part of a package of aviation industry regulations aimed at boosting the struggling industry in the face of Brazil's deepest recession in decades. With the veto, the country's 20 percent limit on foreign ownership of airlines remains in place.

Brazilian senators agreed to pass the legislation on June 29 only after Temer promised to veto the section of the bill dropping foreign ownership limits.

The senators said they wanted to study the impact of more foreign ownership on smaller regional airlines before considering removing the limit.

(Reuters)