Brazil considers lifting foreign stake limit for airlines -paper

lunes 1 de febrero de 2016 05:47 GYT
 

BRASILIA Feb 1 (Reuters) - Brazil's government is considering removing limits to the foreign ownership of local airlines to attract investment to the struggling sector, Valor Economico reported on Monday.

President Dilma Rousseff is also contemplating opening up the capital of Infraero, the state-run company that controls most of Brazil's airports, Valor said, without citing sources.

The proposed legislation would give the president power to allow foreign investors to have total ownership of a Brazilian airline, the paper reported.

Foreign groups are only allowed to hold up to 20 percent in local airliners under existing rules.

For years, the Brazilian government has flirted with the idea of changing airline ownership rules, but a severe crisis in the sector fueled by a deep recession, is adding pressure on policymakers to remove limits.

Officials in Rousseff's office were not immediately available to comment on the report.

Brazil's airline market is dominated by TAM, the Brazilian flag carrier of Santiago, Chile-based Latam Airlines Group SA , Gol Linhas Aéreas Inteligentes SA, which is part owned by U.S.-based Delta Airlines Inc., Avianca Brasil and Azul Linhas Aéreas Brasileiras SA. (Writing by Alonso Soto; Editing by Alexander Smith)