Brazilian Congress has approved Draft Law (Projeto de Lei de Conversão – PLV) No. 12/2019, related to Provisional Measure (Medida Provisória – MP) No. 863/2018, to authorize foreign companies to hold up to 100% of the shares of Brazilian airline companies. Foreign participation in Brazilian airlines has been limited to 20%.

According to the Draft Law, national airline companies must also offer free baggage on domestic flights. (For aircraft with more than 31 seats, free baggage would only apply to a piece weighing 23 kg or less.) The baggage allowance had been abolished in 2016 by the Brazilian National Civil Aviation Agency (Agência Nacional de Aviação Civil – ANAC), and, since then, airlines companies have been adopting charging policies.

Approved on the last day of the validity of MP No. 863, the Draft Law awaits presidential sanction.