Brazil-US open skies could assist with FDI cap changes

20 March, 2018

CAPA - Centre for Aviation, in a report entitled: 'Brazil-US aviation: Open skies as foreign ownership laws relax', stated (20-Mar-2018) the ratification of a Brazil-US open skies agreement led to speculations it could create an opportunity to examine the Brazilian laws on FDI of the country's airlines. As previously reported by CAPA, the Brazilian Executive brand of the Government is in favour of opening FDI on airlines to 100% ownership however due to negotiations with the Legislative branch, Brazil's President Michel Temer vetoed changes to the 20% ownership cap in Jul-2016. CAPA's report argued JetSMART's debut could be a case study in alleviating any fears of 100% FDI causing harm as LATAM Airlines Group recently acknowledged that while capacity has increased in Chile's domestic market, it "feels comfortable today in the current market situation in domestic Chile". [more - CAPA Analysis]