Brazil may allow foreign control of airlines

A Brazilian government led by VP Michel Temer would consider allowing foreign owners to acquire a controlling stake in local airlines, a close aide says. 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. When asked if Temer, who is poised to replace embattled 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 become acting president if that occurs. Rousseff issued a decree in March lifting the limit on foreign ownership of local airlines to 49% from 20%, in an effort to help Brazil's 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.<br/>