Brazil’s GOL complains about LATAM/Azul codeshare

GOL Linhas Aéreas Inteligentes (G3, Sao Paulo Congonhas) has filed a complaint with the Brazilian free market regulator (Conselho Administrativo de Defesa Econômica – CADE), alleging unfair market concentration resulting from the codeshare partnership between LATAM Airlines Brasil and Azul Linhas Aéreas Brasileiras on five trunk routes, the daily Estadão has reported. The low-cost carrier claimed that by establishing a metal-neutral partnership on services from Belo Horizonte Tancredo Neves to Sao Paulo Guarulhos and Sao Paulo Congonhas, from Guarulhos to Porto Alegre, from Brasilia to Recife, and from Congonhas to Vitória Goiabeiras, the two rivals have acquired too much market power. GOL alleged that the cooperation harms it and its customers since the airline is the only remaining competitor on these routes. According to the ch-aviation capacities module, LATAM and Azul have a combined market share by capacity of 65.4% on the Belo Horizonte-Guarulhos route, 62% on the Belo Horizonte-Congonhas route, 55.2% on the Guarulhos-Porto Alegre route, and 60.6% on the Brasilia-Recife route. The Congonhas-Vitoria route is served only by GOL and LATAM, with the former having a 68.3% market share by capacity. Azul and LATAM announced a codeshare partnership covering 29 routes initially in June 2020. Both airlines said they were in contact with CADE regarding the implementation of the agreement.