Lifting of cap on foreign ownership of Brazilian airlines vetoed  

Sticking to an agreement with senators, Brazil's interim President Michel Temer has vetoed provisions to lift the cap on foreign ownership of domestic airlines as he sanctioned a law on airline regulations on Monday (Jul. 25).

The new legislation results from a temporary presidential decree that increased the permitted amount of foreign interest in Brazilian airlines from 20% to 49%. During the discussion in the Chamber of Deputies, Temer's government sought to make it 100%, lifting the cap altogether. But faced with opposition from senators, who said they would have to consider the matter further given its complexity, the government promised to veto this relaxation.

With the line-item veto, the maximum stake foreign investors are allowed to have in Brazilian airlines has been restored to the original 20%.

Translated by Mayra Borges