With the news of Avianca Brasil filing for court-supervised reorganization and the warning from the International Air Transport Association (IATA) about the financial situation of Latin American airlines, Brazilian president Michel Temer has issued a decree allowing air carriers to be entirely owned by foreign capital.
Since taking office, Mr. Temer has never hidden his intent to liberalize the airline market. He sponsored a bill in Congress to allow foreign companies and capital to own Brazilian airlines, but it was voted down by the Senate. Eliseu Padilha, Mr. Temer’s Chief of Staff, said at the time that it was only an attempt to legalize something which already occurred unofficially. “Of course we know that our airlines are not all controlled by Brazilians,” he said.