Two of Brazil’s biggest airlines, Azul and GOL, are inching closer to a merger that would give the merged company about 60% of Brazil’s domestic market.
Azul and Abra Group, the majority owner of GOL, have signed a non-binding memorandum of agreement to work on the merger, which would make it Brazil’s dominant carrier. Azul was founded by David Neeleman, the ‘serial airline entrepreneur) who also helped start WestJet, Morris Air, JetBlue and Breeze. Abra is also the largest shareholder in Colombia’s Avianca.
Under the plan, the company would continue to operate both brands, but as a single company. The merger would require approval from Brazil’s anti-trust regulator. Azul CEO John Rodgerson said the merger would make the company a “national champion” and pointed out other airlines that dominate their home markets, such as LATAM in Chile and Lufthansa in Germany.
“So these other countries understand the importance of having a strong airline that can grow,” he told Reuters. “Especially a strong company which buys local aircraft.” That reference was to the presence of Brazil-built Embraer planes in Azul’s fleet.
