Brazil’s lower house of Congress voted on Tuesday, May 21, to allow foreign-controlled airlines to operate domestic flights in Latin America’s largest economy, opening the door to more competition in an increasingly concentrated market.
The chamber approved the original text of a decree issued by former President Michel Temer in December that removed the 20% limit on foreign ownership of Brazilian airlines.
However, debates continued into the night, with voting scheduled to tweak the final language of the bill that will be sent to the Senate, reported Reuters. The upper chamber is expected to pass the measure, which would then go into effect immediately.
According to Reuters, the removal of the restriction could lure a foreign carrier eager to jumpstart its presence in the domestic market, or open the door for foreign airlines to dramatically increase their existing stakes in the big three Brazilian carriers.