Brazil approves $100m American Airlines maintenance center

Brazil’s government has approved a plan by American Airlines to build a maintenance center at Sao Paulo’s Guarulhos airport, a $100m investment that will help the US carrier consolidate its South American operations. A resolution signed by Transportation Minister Maurício Quintella was published on Friday in the official gazette, approving an agreement between the airline and the firm operating the airport. It allows American to use land at the airport for up to 40 years. Reuters first reported in March that the US airline planned to set up its first aircraft maintenance center in South America at Sao Paulo’s international airport, where it will build a two-bay hangar at a cost of $50m plus another $50m for parts and tools. On any given day, American has at least six wide-bodied aircraft parked in Sao Paulo for up to 12 hours, and the hangar will allow it to do maintenance work using the planes’ ground time, said Marta Pantin, a spokeswoman for the airline. The approval is the latest example of President Michel Temer’s efforts to attract foreign investment to help build road, ports and railways and modernize Brazil’s airports. Private concessions are now operating the main airports and the government plans to sell shares in public airport operator Infraero through an initial public offering, potentially surrendering control of the agency. Temer’s government has also discussed ending a rule that restricts foreign ownership of Brazilian airlines to a 20% stake. <br/>