UPDATE 1-Brazil's Temer could allow foreign control of airlines -adviser
(Adds details on recent decree, context)
BRASILIA May 4 (Reuters) - A Brazilian government led by Vice President Michel Temer would consider allowing foreign owners to acquire a controlling stake in local airlines, one of his closest aides told Reuters on Wednesday.
Wellington Moreira Franco, a chief economic adviser for Temer and a former aviation minister, said relaxing the current limits on foreign ownership would help bolster competition in an industry suffering its worst crisis in decades.
"Today you have legislation that limits the participation of investors," Franco said in a telephone interview.
When asked if Temer, who is poised to replace embattled leftist President Dilma Rousseff, would consider allowing foreign investors to have controlling stakes in Brazilian airlines, Franco said: "Yes, obviously."
Brazil's Senate is expected next week to vote to put Rousseff on trial for allegedly breaking budget laws. Temer, a constitutional lawyer, would automatically become acting president if that occurs.
Rousseff issued a decree in March lifting the limit on foreign ownership of local airlines to 49 percent from 20 percent, in an effort to help Brazil's highly indebted carriers.
But the move only allows for a controlling stake if the country of origin of the foreign investors extends reciprocity to Brazilian investors. Many countries limit foreign ownership in the aviation sector for strategic and security reasons.
Although Rousseff's decree is in effect, it must still be approved by Brazil's Congress to be made permanent. Continuación...