The new feature introduced by this Provisional Measure is the increase from 20% to 100% of the legally authorized participation of foreign companies in the voting capital of Brazilian airlines.
This change has the potential to foster mergers and acquisitions of Brazilian airlines already in operation, as well as attract new airlines to the market, as well as reduce fares for consumers and increase the number of routes and flights offered.
It is important to remember that although the Provisional Measure comes into effect immediately, its continued existence in the national legal system depends on its approval by the National Congress. If the Provisional Measure is rejected by the National Congress or is not enacted into law within 120 days of its enactment, it will lose its effects from the date of its enactment. In this case, it is up to the National Congress to regulate the legal relationships created during this 120-day period. If it fails to do so, the legal relationships will continue to be governed by the terms of the revoked Provisional Measure.
