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ARTICLE · 09 SEPTEMBER 2019

Trending Topics In Brazilian Aviation Industry

Blake, Cassels & Graydon LLP
Blake, Cassels & Graydon LLP
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Blake, Cassels & Graydon LLP

Blake, Cassels & Graydon LLP

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Increasing Competition in Brazil

The Brazilian Congress passed Law 13.842 on June 17, 2019, which amended the Brazilian Aeronautical Code by abolishing the existing restrictions on foreign ownership and control in national airlines. As the code now allows foreign airlines to establish Brazilian subsidiaries, the Brazilian commercial aviation market is expected to become more competitive than ever. Currently, there are three major airlines in Brazil: Gol, LATAM and Azul. Gol and LATAM together hold more than 86 per cent of the total frequencies in Brazilian airports. Azul has been increasing its market share, especially after Oceanair (also known as Avianca Brazil) ceased its operations in May 2019.

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