The largest Brazilian airline, Azul S.A., and the British Abra Group have signed a memorandum of understanding to combine assets in Brazil and create one of the largest airlines in Latin America. This is reported in the press release of Azul.
Upon completion of the transaction, Abra, which is the majority investor of the Brazilian low-cost airline Gol Linhas Aéreas Inteligentes S.A. and the Colombian Avianca Holdings, will become the main shareholder of the combined company.
The completion of the transaction is subject to the approval of economic conditions, due diligence, and approval by shareholders and regulatory authorities in Brazil.
The deal will allow Brazil to gain a higher position in the global market due to the growth of the Brazilian aviation industry, including an increase in the number of domestic and international flights. At the same time, 90% of the routes of both companies complement each other and do not overlap, allowing them to maintain operational certificates and conduct operations independently.
The Brazilian market, with a population of over 220 million people and 110 million flights per year, is less developed than in neighboring countries and has great potential for expansion amid sector consolidation.
Azul S.A. is Brazil's largest airline in terms of the number of flights operated on 300 direct regional, domestic and international routes. The headquarters is located in Sao Paulo (Brazil).
Abra Group is a holding group with headquarters in the UK. Abra controls Avianca and GOL under independent brands within a single holding company. In addition, Abra owns 100% of Viva's operations in Colombia and Peru, as well as a minority stake in Sky Airline.
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