A.O.C.'s and whole companies for Sale

Brazilian Government to announce the end of limits on voting capital controlled by foreigners on air service companies and aerial services

By Daniel Rittner and Bruno Peres – Valor Econômico

Brasilia-DF - As of tomorrow, Tuesday (April 11th), the Brazilian Federal Government should be announcing the end of any restrictions on air service companies voting share capital which can be owned by foreigners, nowadays limited to 20%. The proposal is part of an MP (a “Medida Provisória”, i.e. a presidential order subject by approval by both chambers of Congress) with measures to prompt tourism industry development, which is due to be signed this afternoon by President Michel Temer and published on tomorrow’s edition of D.o.U. (“Diário Oficial da União”, i.e. the Federal Government’s Official Gazette).

The "Tourism MP", as it has so far been called at Palácio do Planalto, also creates the electronic visa mechanism, in order to make the entry of foreigner visitors in Brazil a simpler, less bureaucratic and more pleasant experience. In this sense, there has been an important victory from Itamaraty (or MRE - the Ministry of Foreign Affairs) officials, at the backstage of such discussions. With open support from “Casa Civil” (i.e. the Head of Staff Ministry), the Ministry of Tourism had been advocating the end of the traditional reciprocity on the concession of consular visas. The idea was to instate a unilateral waive of requirements for visitors from four contries - USA, Canada, Japan and Australia - which have average high spending records in Brazil and - in their understanding - represent low migratory and security risks.

Itamaraty put up a fierce resistance to the proposal and won. Hence the implementation of the electronic visa - though due to start with passport holders of the aforementioned countries - will still be a requirement, at least for the moment.

Another section of the MP refers to the Civil Aviation industry. The limit of voting share capital foreigners can control on airlines (or any aerial service companies) will be raised from the current 20% to 100% and measures of incentive will be established to prompt development of the regional aviation segment. Other than that, the government will rest authorized to hire Infraero directly, in order to offer and/or operate infrastructure services on small airports in remote areas, something nowadays constrained by legislation.

Another axis of government’s policies regarding the development of tourism, Embratur’s restructuration plan is still being addressed internally. Should the government fail to come up with a short-term solution to guarantee budgetary resources for the new tourism promotion agency (still to be created), this initiative will be placed “on hold” for a near future opportunity.

* This is a free translation of the article published in Portuguese by VALOR. The original link is: http://www.valor.com.br/politica/4933466/governo-anuncia-amanha-fim-do-limite-capital-estrangeiro-nas-aereas

** For more info on brazilian AOC's acquisitions and/or partnership, please feel free to contact us via e-mail captotero@lhtaviationconsultant.com and/or 

 Mob Ph # +55 22 98125-9440.

 

Brazilian government vows to loosen rules for air taxis to operate commuter flights

Textron Cessna 208-B Grand Caravan

By Alexandre Marques - Radar Aéreo - 1:12:00 pm – April 3rd, 2017

Rules that currently limit the number of regular flights which can be exploited by air taxis (i.e. RBAC 135 certificate holders) between small and bigger central airports in Brazil are about to become more flexible.

The purpose is to broaden the coverage of regional aviation through links between smaller cities and larger airports (hubs), served by national domestic and/or flag carriers.

Rules will be loosen still this year, allowing on-demand (air taxi) operators to expand their weekly commuter frequencies from 15 to 50”, said Dario Lopes, national Civil Aviation Secretary with the Ministry of Transport. “Among the 190 airports currently listed to receive benefits from the Regional Aviation Plan, some 150 have a very low demand with just a few regular passengers. Those are markets which do not demand bigger airplanes and will only be profitable for companies willing to operate smaller equipments”, added the secretary, while attending IBAS (International Brazil Air Show) in Rio de Janeiro yesterday.

According to Lopes, Brazil has a large fleet of Cessna Caravans (single engine turboprops with up to 12 passenger seats capacity) and hundreds of bigger airplanes with more than 130 passenger seats. “Between Caravans and the big jets - manufactured by Boeing, Airbus and Embraer - there is quite a gap. This is a problem which needs to be addressed.

There are up to 231 x C-208 Cessna (Textron) Caravans currently flying throughout the country.

The companies which offer regular services in Brazil - Gol, LaTAM, Azul, Avianca, Passaredo, Map and Total - operate a total of 500 aircraft, most of them Airbus, Boeing and Embraer with more than 30 passenger seats.

Without smaller airplanes with up to 30 passenger seats, according to Lopes, there is no (economically viable) way to integrate smaller cities airports with the larger mid-size and main hubs, currently served by domestic and flag carriers. In order to help solving this problem, the federal government considers approving an old request made by the air taxi companies, which would like to operate commuter services, known in Brazil as LAS - “Ligações Aéreas Sistemáticas”. The acronym nowadays corresponds to services offered to and out of airports not served by any regular (121) companies, at least once a week. Companies which operate LAS cannot exceed 15 weekly frequencies, according to the present rules, which basically jams expansion and/or inception of new regular routes.

There are some 120 on-demand (air taxi) companies registered as active with ANAC (Brazilian National Civil Aviation Agency), with a total fleet of approximately 400 aircraft, between jets and turboprops. Any of those companies will be able to operate as a LAS provider, once the new rules are defined and published.

About half a dozen companies could start flying their Cessna Caravans in the short term. One of them is Two Flex, headquartered at the state of São Paulo, managing a fleet of 18 Cessna Grand Caravan - currently the largest C-208 Series fleet in Brazil. In an interview given last February 3rd, its managing partner Rui Aquino declared the company is ready to launch services to at least 30 small airports not served by any regular companies at the moment, as soon as the current ruling is made more flexible by the authorities. It is his plan to invest another US$ 18 million, thus expanding Two Flex’s fleet towards as many as 30 airplanes. 

* This is a free translation of the article published in Portuguese by Radar Aereo blogspot. The original link is: 

http://radaraereo.blogspot.com.br/2017/04/governo-quer-flexibilizar-empresas-de.html

** For more info on brazilian AOC's acquisitions and/or partnership, please feel free to contact us via e-mail captotero@lhtaviationconsultant.com and/or 

 Mob Ph # +55 22 98125-9440.

 

 

Brazil lower house agrees end to cap on foreign airline ownership - by Reuters

BRASILIA, JUNE 21 - 2016

Brazil's Lower House on Tuesday voted to end limits on foreign ownership of local airlines, changing a presidential decree, and extending a lifeline to carriers struggling with the impact of a recession and a slumping currency in Latin America's largest economy.

The lower house approved an amendment to a decree issued by suspended President Dilma Rousseff that originally increased the share foreign companies could own of local airlines to 49 percent from 20 percent. The amendment allows full foreign ownership of local airlines.

Interim President Michel Temer, who has replaced Rousseff while she stands trial in the Senate for allegedly breaking fiscal rules, has supported increasing foreign participation to help cash-strapped local airlines.

The decree still requires Senate passage before going to presidential signature.

Shares of local airline Gol Linhas Aéreas Inteligentes SA , which is partly owned by U.S. carrier Delta Airlines Inc, rose more than 2 percent after the vote. (Reporting by Marcela Ayres; Writing by Alonso Soto; Editing by Bernard Orr)

Original link: http://www.reuters.com/article/brazil-airlines-stake-idUSL1N19D1JR

 

Brazil raises foreign ownership limit on airlines to 49% - by The Globe and Mail

 SAO PAULO — Reuters

 Published Wednesday, Mar. 02, 2016 6:34AM EST

Brazil has lifted the legal limit on foreign ownership of local airlines to 49 per cent, from 20 per cent previously, according to a presidential decree published in the official gazette on Wednesday, opening the door to more help for troubled carriers.

Weak domestic demand and the sharp depreciation of Brazil’s currency have caused deep operating losses, forcing airlines to cut routes and jobs and seek foreign partners.

The decision to let them deepen those partnerships reflects a major policy shift by President Dilma Rousseff, opening up one of the Western hemisphere’s most-closed economies to badly needed capital to halt a severe economic recession.


In an interview with Reuters on Monday, the interim aviation minister, Guilherme Ramalho, said the government was working on the proposal to increase the ownership stake in two stages.

Ramalho and other government officials favour allowing foreign groups to have controlling stakes in local airlines.

Congress has debated the measure since last year, and anticipation of a presidential decree last week drove up the share price of Gol Linhas Aereas SA, which has expanded its partnership with Delta Air Lines Inc in recent years.

Delta threw a lifeline to Gol last year with a $446-million (U.S.) stock and loan agreement. The U.S. carrier owns 9.5 per cent of Gol, entirely concentrated in preference shares.

Smaller Brazilian rival Azul SA also struck a deal in November to raise $450-million from China’s HNA Group after repeatedly postponing a planned initial public offering since 2013.

Brazil’s biggest airline, TAM, resorted to a complex two-tier ownership structure to pull off the 2012 merger forming Chile-based Latam Airlines Group SA, reducing cost savings and contributing to analysts’ concerns with the deal.

The Efromovich family runs Avianca Brasil, the country’s fourth-biggest airline, which is separate from Avianca Holdings SA, the Panama-based group operating Colombia’s biggest airline.

Rousseff also issued a decree cutting the income tax on remittances sent abroad to pay for tourism and other services to 6 per cent, from 25 per cent, according to the official gazette.

* Below is a (freely-adapted) translation into English of the new wording on Law 7565/86 (also known as CBA - Brazilian Code of Aeronautics, which regulates local Civil Aviation regulations):

"Art. 4 - Law # 7.565, dated 19th of december 1986, is from now on effective with the following alterations:

Art. 181 - The concession or authorization shall only be granted to a brazilian incorporated company, provided it has:

I - its main place of business in the Country; and

II - at least 51% (fifty one per cent) of its voting capital belonging to brazilian nationals, being such limitation also mandatory following
an increase on such capital.
……………………………………………………………………………………………

§ 3rd - Title transfer of voting capital to foreigners, included on the 49% (forty nine per cent) margin of the capital referred to by Item II of
the caput, shall be subject to previous approval by the aeronautical authority.

§ 4th - Should the total final amount of voting capital belonging to foreigners not exceed 49% (forty nine per cent) of the company's total share capital, foreigners
(either individuals or corporations) will be allowed to acquire capital increase stock, up to the amount of such difference.

§ 5th - Observed the reciprocity, agreements regarding air services celebrated by the Federative Republic of Brazil could authorize an amount of voting capital in
posession of brazilian nationals lower than the minimum established by Item II of the caput, valid strictly between the contracting parties.

§ 6th - On the case of specialized aerial services related to teaching, training, investigation, scientific experiment and agricultural operations and other similar
services, the authorization can be granted to civil entities." (NR)

Art. 5 - The following are from now on revoked:

- Item III, caput of Art. 181 and Art. 182 of Law # 7565, dated 19th of december 1986;

(…)"

----------------

 

* For more info on brazilian AOC's acquisitions and/or partnership, please feel free to contact us via e-mail captotero@lhtaviationconsultant.com and/or 

 

Mob Ph # +55 22 98125-9440.

 

** Original links:

http://www.theglobeandmail.com/report-on-business/international-business/latin-american-business/brazil-raises-foreign-ownership-limit-on-airlines-to-49/article28993694/

http://paraserpiloto.appa.org.br/2016/03/02/governo-aumenta-por-medida-provisoria-a-participacao-de-capital-estrangeiro-nas-companhias-aereas-limite-pode-chegar-a-100/

 

Senate Commission approves National Air Carriers to be 100% controlled by foreign investors

Mr. David Neeleman - AZUL Airlines

*Free translation of relevant text from the original in portuguese - aug. 18th, 2015

Foreign investors maximum share can raise from 20% to 100%, depending on the text approved

The Commission for revision of the Brazilian Code of Aeronautics (CBA) has approved this Monday afternoon (Aug. 17th) the end of any limitations on foreign control of share capital of national air carriers, currently restricted to a maximum of 20%.

The suggestion - also proposed by similar initiatives currently under discussion at the Brazilian Senate - has yet to undergo evaluation by other House's sectors, before it can join the project's final version. Once it is approved by the Specialists' Commission, the preliminary draft will become a bill to be analysed and voted by both chambers of Congress.

The alteration was approved by nine against six (which were in favour of a different arrangement, where maximum control by foreign investors would still be limited to 49%). Georges Ferreira, a lawyer who heads the Commission, explained "the debate is not exaustive and that the removal of limitations on foreign control could be conducted in a more gradual manner, in an attempt to allow national companies adapting themselves to this new set of rules."

"The discussion tends to heat up, as  the Commission's text is yet to be finalized, added to it the findings from the Committee for Legal Affairs and from the Senate Advisers Team as well. The Commission will present its suggestions, as it looks like there will be no consensus on the matter", added Ferreira.

Ferreira also understands "the market's opening for foreign capital does not necessarily imply losses to national companies, as Brazil - opposite to what happens in countries such as US - has a more regulated economy. Else it is important to note many foreign companies already operate in many other segments as multinationals, historically to local economy's advantage. It is important to underscore the benefits."

"We need investments in airlines, air taxi companies and other ancillary services which can be expanded and improved, as foreign capital is injected. Matter of fact, we already have 'de facto' foreign-controlled companies here. Yet they all have to respect brazilian labour and tax laws. So - again we emphasize - what we are doing is bringing to debate the suggestion of a total removal on the limitations", concluded Mr. Ferreira.

The removal of all limitations on foreign capital was also defended by Senate Specialists' Comission, Mr. Dorieldo Luiz dos Prazeres. He cited a study about Civil Aviation ruling by Senate's Legal Adviser, Mr. Victor Carvalho Pinto, according to which "the retention of any limits on foreign capital participation ultimately offends constitucional provisions, as it poses constraints to the country's economic development."

Mr. Nilson Lautenschlager (another lawyer) says Brazil needs foreign capital injections, as it does not have internal capital like USA, where credit is avaialble on most situations. According to him, "investment funds are in favour of a total removal of restrictions, as the rule favours direct control and reduces exposure to risk, as far as capital management is concerned."

"With a full liberalization of this market, the capital volumes tend to be higher. However, one cannot forget  brazilian market's current environment. A total and imediate opening without any controls might be dangerous, as the damages could overcome the benefits.  Any inititiative approved now, even partial, can later evolve towards a removal of all restrictions. That might better enable the local market to restructure itself and be able to compete under equal conditions."

The Commission will resume its hearings on Aug. 24, at 10:00 am, continuing with the CBA's revision. The Commission reckons at this time some 20% of the CBA's clauses has already been reviewed/revised. Provided it is able to keep the pace, works should be completed by December this year.

Mr. Carlos Ebner, IATA's Director for Brazil, said he hopes to see responsibility upon defining the limits on foreign capital controlling brazilian companies, as this is "a growing market, yet not a mature one". He also observed USA's limit is 25% and Europe's 49%. "Brazil is the 4th largest domestic market worldwide. United States, the strongest defender of the Open Skies policy, nowadays calls for 'fair competition', as the main middle-eastern airlines - which have no social and/or labour costs, no employees' strikes and no taxes - have established their operations all across the West, thus preventing fair competition."

Crewmembers Union (SNA - Sindicato Nacional dos Aeronautas) representative Capt. Adriano Castanho Ferreira stressed a total (and sudden) opening to foreign capital might not pay-off, citing as an instance Aerolíneas Argentinas' privatisation, as the air carrier eventually had to be returned to the Argentinian State with billions of dollars losses.

 "We are maneuvering through a moment of extremely low demand. No government would be strong enough to satisfactorily regulate and control foreign companies based and freely operating out of the country. Merges / aircraft interchanges / freedom of registry and crew licensing eventually woul take place.  All these issues are relevant and interrelated", added the SNA's representative.

* For more info on brazilian AOC's acquisitions and/or partnership, please feel free to contact us via e-mail captotero@lhtaviationconsultant.com and/or 

Mob Ph # +55 22 98125-9440.

** Original link in portuguese: http://economia.ig.com.br/2015-08-17/comissao-aprova-que-empresas-aereas-do-pais-tenham-100-de-capital-estrangeiro.html

 

IV - ICAO (Part 135) Air Taxi A.O.C. FOR SALE - Ops Base Undisclosed

C-208B pic merely illustrative

We currently offer an active company certified for on-demand transport (i.e. "Air Taxi") of Cargo / Pax / Mail or Express Delivery (ANAC / ICAO Part 135) priced for immediate sale:

1)- Partial import tax exemption to import aircraft (state tax reduced to 4%);

2)- Fully operational and ready to be submitted to prospective buyer's due dilligence. Fleet comprises 01 x 2008 Cessna C-208B Grand Caravan.  Domestic and/or international Ops Specs, though amendments have to be filed with ANAC, once the acquisiton is accomplished;

3)- Title takes between 90 and 120 days to be transferred. Along such period, all desired alterations can be processed in parallel, i.e. from 135 towards 121, changes on Ops Specs, aircraft to be operated, operational base location, commercial name and logos change etc.

Take advantage of the new brazilian government's program for Regional Aviation development. For more info, contact us via

e-mail captotero@lhtaviationconsultant.com and/or Mob Ph # +55 22 98125-9440. 

III - ICAO (Part 135) Air Taxi A.O.C. FOR SALE - Ops Base Undisclosed

EMB-820 Navajo (merely illustrative purposes) - Embraer's archive image.

We are offering an active company certified for on-demand transport (i.e. "Air Taxi") of Cargo / Pax / Mail or Express Delivery (ANAC / ICAO Part 135) priced for immediate sale:

1)- Partial import tax exemption to import aircraft (state tax reduced to 4%);

2)- Fully operational and ready to be submitted to prospective buyer's due dilligence. Fleet comprises an Embraer 820 Navajo and a Cessna C-182.  Domestic and/or international Ops Specs, though amendments have to be filed with ANAC, once the acquisiton is accomplished;

3)- Title takes between 90 and 120 days to be transferred. Along such period, all desired alterations can be processed in parallel, i.e. from 135 towards 121, changes on Ops Specs, aircraft to be operated, operational base location, commercial name and logos change etc.

Take advantage of the new brazilian government's program for Regional Aviation development. For more info, contact us via e-mail captotero@lhtaviationconsultant.com and/or Mob Ph # +55 22 98125-9440. 

II - ICAO (Part 135) Air Taxi A.O.C. FOR SALE - Niteroi - RJ, Brazil

                                                  [SOLD!!!]

We are offering a fresh AOC for on-demand transport (i.e. "Air Taxi") of Cargo / Pax / Mail or Express Delivery (ANAC / ICAO Part 135) priced for immediate sale:

1)- AOC recently granted by ANAC (Brazil's civil Aviation Agency), therein included partial import tax exemption to import aircraft (state tax reduced to 4%);

2)- Fully authorised to initiate operations, domestic and/or international;

3)- Title takes between 90 and 120 days to be transferred. Along such period, all desired alterations can be processed in parallel, i.e. from 135 towards 121, changes on Ops Specs, aircraft to be operated, operational base location etc.

Take advantage of the new brazilian government's program for Regional Aviation development. For more info, contact us via e-mail captotero@lhtaviationconsultant.com and/or Mob Ph # +55 22 98125-9440. 

I - ICAO (Part 135) Air Taxi A.O.C. FOR SALE - Sao Paulo - SP area, Brazil

Picture has merely illustrative purposes

                                                   [SOLD!!!]

We are offering a fresh AOC for on-demand transport (i.e. "Air Taxi") of Cargo / Pax / Mail or Express Delivery (ANAC / ICAO Part 135) priced for immediate sale:

1)- Provisional authorisation recently granted by ANAC (Brazil's civil Aviation Agency), therein included partial import tax exemption to import aircraft (state tax reduced to 4%);

2)- Fully authorised to initiate operations, domestic and/or international, though amendments have to be filed with ANAC, once the acquisiton is accomplished;

3)- Title takes between 90 and 120 days to be transferred. Along such period, all desired alterations can be processed in parallel, i.e. from 135 towards 121, changes on Ops Specs, aircraft to be operated, operational base location, commercial name and logos change etc.

Take advantage of the new brazilian government's program for Regional Aviation development. For more info, contact us via e-mail captotero@lhtaviationconsultant.com and/or Mob Ph # +55 22 98125-9440. 

This sub-page still under construction. New contents coming soon!!! Thanks for visiting us!!!

Write a new comment: (Click here)

SimpleSite.com
Characters left: 160
DONE Sending...

Lionel Stansfield | Reply 02.03.2016 22.38

Takes steel nerves and huge amounts of capital to invest in Brazil on such a phase.

Reinaldo Niemeyer | Reply 02.03.2016 21.42

Demorou! Iam deixar quebrar as empresas tudo, que nem fizeram com VARIG, VASP etc? E no fim já são todas estrangeiras mesmo, em termos práticos.

Sanjay R. Khumar - Mumbai India | Reply 23.01.2016 10.58

Reduction or even elimination on foreign capital limits is the way to go, in order to atract foreign investors. Nice work!

See all comments

| Reply

Latest comments

02.06 | 14:33

Os Srs. ainda transladam aviões agrícola? Gostaria dum contato. Obrigado.

...
18.01 | 23:56

Vcs trabalham com aeronaves agrícola, tambem? Obrigado.

...
17.11 | 08:22

https://www.allflyingjobs.com/
the only website with more than 1200 pilot jobs, 180 cabin crew jobs, 350 aircraft engineers jobs, updated daily!

...
20.09 | 22:28

Estamos procurando um King Air 350. Teria como dar retorno via e-mail com as aeronave disponiveis?

...
You liked this page
Hi!
Make your own website like I did.
It's easy, and absolutely free.
AD