Gol, Azul plan Brazil airline merger
Brazil airlines Azul and GOL are set for merger talks which could create the dominant player in aviation in the country.
They signed a MoU after getting tentative approval from Brazilian President Lula da Silva.
The plan is to combine the businesses of Azul and GOL parent Abra.
It would give the new business a 60% share of the aviation market.
GOL is currently in Chapter 11 bankruptcy and would only go ahead once its restructuring is completed.
“As part of Abra’s strategy to bolster the Brazilian market, this is an important opportunity to further intensify our presence in Brazil,” said Abra Group CFO Manuel Irarrazaval.
GOL and Azul would integrate financial and operational functions like a single reservation system but would maintain distinct airline brands.
Together, they operate a combine 14 routes to Florida.
The combined fleet size is more than 300 planes.
The airline merger would still be subject to the usual antitrust scrutiny.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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