After reporting the cancellation of the code share with LATAM Brazil, and announcing that it was looking for «consolidation opportunities» in the market, air industry sources indicate that Azul Linhas Aéreas is considering making an offer to LATAM Airlines for the Brazilian subsidiary.
Brazil’s No. 3 airline, Azul SA, said on Monday it would start operating 17 flights per day between Sao Paulo and Rio de Janeiro, the country’s most transited route, currently dominated by the country’s No. 1 and 2 carriers.
Brazilian airline shares soared nearly 30% on Monday after a newspaper report said the government may scrap limits on foreign ownership of domestic airlines to attract investment to the struggling sector. President Dilma Rousseff may propose legislation giving her discretion to let foreign groups own as much as 100% of local airlines, up from 20%, Valor Econômico reported.
Avianca Brasil has joined Azul in becoming the second Brazilian airline to promise to cap prices for the upcoming football World Cup, which opens June 12 in Sao Paulo. Avianca said it would match Azul and limit one-way fares to a maximum of 999 Reais (425 dollars).
Brazil's consumer watchdog Procon Rio do Janeiro branch has ordered five airlines to reduce abusive domestic fares during next year's FIFA World Cup. Avianca, TAM, Gol, Azul and Oceanair have been accused of inflating prices up to 10-fold during the June 12-July 13 tournament.
Brazil’s low-cost airline Gol announced that it is eliminating the WebJet brand, the rival airline that it took over earlier this year, cutting 850 jobs and reducing domestic capacity in the process.