Yesterday, the provisional measure, which allows up to 100% foreign capital in companies of the civil aviation sector, was approved by President Jair Bolsonaro with a veto to provisions regarding compulsory free checked luggage on domestic flights, in accordance with recommendations issued by Cade and Anac.
In his veto reasons, the President pointed out that the provision did not serve the public’s interest, as free checked baggage would make the sector less competitive, thereby pushing back low cost companies, who sell each item that makes up the air transportation service separately, besides generating indiscriminate burden on all consumers, including those who do not use the service.
These provisions were also considered unconstitutional by the President, since they were included by an amendment in a Provisional Measure that dealt with another issue (the possibility of 100% foreign capital in Brazilian companies within the sector). According to the Brazilian Supreme Court, this type of inclusion violates the democratic principle and the due legislative proceeding.
