Abra Group — the majority investor of Gol and Avianca — and Brazilian carrier Azul signed a non-binding memorandum of understanding (MoU) on January 16, 2025, with the intent to explore a combination of their businesses in Brazil. The deal could represent the creation of Brazil's largest airlines as well as one of the biggest in Latin America.
If the transaction is approved, Azul and Gol are expected to keep their independent brands and operating certificates with plans to extend their respective networks.
The companies said they have “almost 90%” complementary routes.
The companies said this would enhance connectivity in the country by expanding national, regional, and international flights; improving competitiveness, products, and services; and strengthening the country's international connections.
“As part of Abra's strategy to bolster the Brazilian market, this is an important opportunity to further intensify our presence in Brazil and empower our global network,” said Abra Group CFO Manuel Irarrazaval.
The closing of the transaction would also depend upon Gol completing its Chapter 11 reorganisation plan. A day prior, the company had said it expected to exit Chapter 11 by May this year.
The transaction is in the initial stage of negotiations at present.
Wachtell, Lipton, Rosen C Katz, and Pinherio Guimaraes are serving as legal advisors to Abra. Caminati Bueno Advogados is acting as lead antitrust counsel.