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

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.