The opening of the Brazilian civil aviation market to foreign capital is still very much a hot topic, especially under the current speculation regarding the measures to be taken by Vice-President Michel Temer should he come to take over as President.
Among the many rumours and indications of how a possible Temer mandate would run, there is comment on the intention to lift all restrictions on foreign direct investment in Brazilian airline companies.
In this scenario, Brazil would revoke the current requirement, under the terms of Provisional Measure No. 714 issued by President Dilma Rousseff on March 1st 2016, that unlimited foreign direct investment would be conditioned to the reciprocal treatment of Brazilian companies in the foreign investor’s country of origin.
The change is viewed by most as beneficial to both foreigners wishing to invest in the Brazilian airline industry and to Brazilian airline companies which could benefit from foreign direct investment during the current economic crisis.
The scenario is still uncertain, having as its basis a Provisional Measure, which depends on Congressional approval to become a definitive part of Brazil’s legal framework, and the possibility that Michel Temer may take over as President, which depends on the Senate’s decisions this week and in weeks to come during President Dilma Rousseff’s impeachment proceeding.