American Airlines to invest $100m in Brazil, says minister

The Temer government plans to end a 20-percent restriction on foreign stakes in Brazil’s airlines and allow open participation by investors from other countries. (Reuters)

BRASILIA: American Airlines Inc. plans to invest $100 million in an aircraft maintenance center in Sao Paulo, a Brazilian minister said on Thursday, touting it as a sign of confidence in Latin America’s largest economy despite Brazil’s recession and latest political turmoil.
Investment Partnerships Minister Wellington Moreira Franco said the US airline would set up its first maintenance center in South America at Sao Paulo’s Guarulhos airport, and would eventually offer services to other airlines.
“An American Airlines executive told me today the company does not share the pessimistic view of Brazil in the media and believes Brazil’s market will grow strongly,” he told Reuters.
Moreira Franco said road shows in the US, Britain, France and Japan revealed investor interest in Brazil’s changing business climate since conservative President Michel Temer took power following the removal of impeached leftist Dilma Rousseff last year.
American Airlines spokesman Josh Freed said the No. 1 US airline by passenger traffic has plans to invest in Brazil but that he could not immediately confirm the amount.