Azul and Gol announce merger to create aviation giant

Thursday, January 16th 2025 - 10:09 UTC

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Brazilian airlines Azul and Gol announced Wednesday after trading closed on the São Paulo Stock Exchange (Bovespa) that they had signed a memorandum of intent to finalize a merger whereby one of the largest airlines in Latin America would be created. If the plan goes through, the resulting airline would have a 60% share in Latin America's largest country, thus challenging Latam's hegemony. Read full article

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FortHay
The usual double speak in such mergers: “. . . benefit the customers. . . etc.” In reality it is all about servicing the debt load, thereby protecting the investors. A merger will mean less competition and higher fares, guaranteed, at least in the short run. If the marketplace is an honest one, a long term correction may result in some benefit. In the US, the demise of PanAm, Eastern, Northwestern and various subsequent mergers made room for competitive companies such as Southwest, Jet Blue and Alaska to provide cost efficient service. If Brazil does not provide that sort of open market environment, we can only expect worsening prices and service.
Jan 22nd, 2025 - 07:42 pm - Link - Report abuse 0
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