Brazil’s troubled aviation sector could get a lift after the country raised the legal limit for foreign ownership of Brazilian airlines to 49%.
Interim aviation minister Guilherme Ramalho said the limit would likely be raised in two stages, according to Reuters.
The previous legal limit for foreign ownership was 20%.
The government has debated opening up the industry to more foreign investment for several months.
It is a timely move as the Brazilian commercial air market is struggling due to currency weakness and economic recession, which has recently been impacted further by the Zika outbreak.
The announcement could spur more investment from the likes of Delta Air Lines which currently has a small stake in Brazilian airline Gol.
Gol’s share price rose 18% immediately after news broke of the foreign ownership limit change.
Fellow Brazilian carrier Azul also secured a $450 million cash injection from China’s HNA Group last year.
