Brazil has issued a presidential decree to remove foreign ownership limitations on local airlines, although the government denies any link between the move and Avianca Brazil filing for bankruptcy protection earlier this week.

Eliseu Padilha, a minister in the outgoing Temer administration, says the removal of the 20% cap on foreign ownership will grow competitivity in the Brazilian aviation market and facilitate the entrance of new operators, leading to growth in air service and employment.

The presidential decree must be approved by Brazil's Congress in up 180 days to become law, but takes effect temporarily.

While the decree will eliminate the limitation on foreign ownership in airlines, it does not necessarily open up the domestic air service market to foreign carriers, says a spokesman for Brazil's civil aviation authority ANAC.

He says that all domestic flights must be operated by locally-established airlines and operated by crew who are Brazilian nationals, despite being owned by foreigners.

The Federal Aviation Administration is ordering airlines to replace fuel manifolds on some GE Aviation GEnx-2B67 engines, which power Boeing 747-8s, due to the risk of an engine fire.

An airworthiness directive that takes effect on 4 January comes in response to an engine fire caused by "low-cycle fatigue cracking of the fuel manifold".

The order requires airlines to replace the manifolds during the next shop visit.

The issue affected 424 GEnx-2B engines worldwide, but GE already issued a service bulletin and only 140 engines still require fixes, the company says.

Those 424 engines compose the bulk of engines on the worldwide in-service fleet of 123 747-8s and 747-8Fs, according to Flight Fleets Analyzer.

European Union politicians have moved a step closer to tightening up regulations governing the thorny subject of ensuring fair competition for air transport within the bloc.

The European Parliament says its negotiators and those of the European Council reached a provisional agreement on 20 November on rules to “ease” the process for opening investigations into unfair practices.

These rules could be used to identify cases where it is suspected that competition is being distorted in a way that "cause injury or threaten to cause injury" to EU-based air carriers.

These include providing subsidies to own airlines,"preferential access" to airport services or "unfair pricing" by non-EU country airlines. They also set out the procedures for "redressive measures".