UPDATE 1-Brazil to allow 100 pct foreign ownership of airlines -ministry

The Brazilian government is drafting a decree to allow 100 percent foreign ownership of local airlines, a Transportation Ministry spokesperson said on Thursday, a move that could attract investors to a recession-beaten industry. Newspaper Valor Economico, citing three unnamed aides to President Michel Temer, earlier on Thursday reported that the presidential decree would boost regional aviation with subsidies favoring smaller planes such as those made by Embraer SA.