✈️ Wings for major airline merger

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Government favorable to major airline merger

Shares of Brazilian airlines Gol and Azul soared on Thursday after Ports and Airports Minister Silvio Costa Filho suggested their proposed merger could receive regulatory approval within a year. In an interview with a government-owned radio station, Costa Filho was careful to note that the final decision rests with CADE, the country’s antitrust regulator. 

• But he signaled the government’s support for the deal, raising concerns about the potential collapse of Gol.

In his words. “Imagine the chaos if a company like Gol were to shut down,” he said. “Gol and Azul currently control [61%] of the domestic air travel market. We’re talking about more than 35,000 direct jobs. Our top priority is ensuring these companies remain viable.”

Save the date. Costa will meet with CADE head Alexandre Cordeiro next week to discuss the merger, although the deal has yet to be formally submitted to the antitrust authority.

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