Brazil: Foreigners may get bigger airlines stake

RIO DE JANEIRO

Foreigners may take a bigger stake in Brazilian airlines under a bill sent to Congress.

Brazil's government wants to revamp its air industry before hosting the 2014 World Cup and the 2016 Olympics.

Foreigners could take a 49 percent stake in companies if the Defense Ministry bill is passed. Outsiders can now only hold a 20 percent stake.

The government wants more competition in an industry dominated by two companies, Gol Linhas Aereas Inteligentes SA and TAM Linhas Aereas SA.

Brazil's aviation industry is strained as demand has grown 14 percent a year for the last five years.

Defense Minister Nelson Jobim tells the Agencia Estado news agency Wednesday the proposed changes will help meet demand and improve infrastructure.