Brazil to Offer R$4 Billion in Public Financing to Airlines
Written by Marcela Correa with Basch & Rameh
https://www.linkedin.com/in/marcela-correa-24892a78/
Following the enactment of Law 15,066 in December 2024, which approved a total amount of BRL 4 billion to support Brazilian airlines in need, the Brazilian government has been advancing a plan to provide the conditions for public financing through the Brazilian Development Bank (BNDES). Under the proposed structure, airline groups with more than 1% of the market will be eligible for loans of up to R$1.2 billion, while those with less than 1% market share may access up to R$200 million. Such loans are expected to be made available by BNDES in August 2025.
As usual, acting as borrowers, the airlines receiving financing will be required to provide security for the loans. Given the limited availability of suitable assets in the sector (for example, the majority of the fleet do not belong to the airlines and are comprised of aircraft leased by foreign entities), discussions are underway regarding the potential use of airport slots as collateral. This presents legal and practical challenges, as slots are not freely transferable and have not historically been treated as property under Brazilian law.