Azul may buy Gol amid judicial recovery

Azul may buy Gol amid judicial recovery


The airline Azul is considering the possibility of making an offer for Gol Linhas Aéreas, which is undergoing a judicial recovery process. According to sources close to the matter, they reported to BloombergAzul is being advised by Citigroup and Guggenheim Partners as it explores several strategic options, including the complete acquisition of the competitor.

The discussions are still in a private stage, and Azul may decide not to move forward with the proposal. To date, the company has not publicly commented on the matter, and neither Citigroup nor Guggenheim have commented on the matter.

Any offer from Azul for Gol would need approval from the Administrative Council for Economic Defense (Cade). Gol, based in São Paulo, filed a request for Chapter 11 in the USA, a form of judicial recovery, for the accumulated debt of R$20.1 billion at the end of 2023.

Azul and Gol are part of the trio of airlines that dominate the air travel market in Latin America, along with Latam. Although they serve some similar routes, Gol focuses more on flights between São Paulo, Rio de Janeiro and Brasília, while Azul has a wider network, including other cities.

John Peter Rodgerson, CEO of Azul, commented that the company is closely monitoring the situation and that it has an obligation to consider opportunities that arise, without providing further details about the possible offer for Gol. “You have an obligation to your shareholders to look at the opportunities that exist,” he told Bloomberg.

Despite rising fares and demand last year, both companies faced financial challenges due to high jet fuel prices and delays in producing new aircraft.

To strengthen its balance sheet, Azul implemented measures such as cost cutting, agreements with landlords and postponing debt payments through bond swaps.


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