Potential airline consolidation in Brazil: more questions than answers

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There has been no shortage of smaller airlines in Latin America seizing on opportunities during the COVID-19 pandemic. But Azul’s reported pursuit of LATAM Airlines Brazil is the most ambitious move yet.

After a consistent period of consolidation in Brazil during the last decade and a half, there is likely to be debate about the necessity for additional coupling among airlines, and how the country’s government would view further consolidation.

And despite the fact that LATAM has apparently dismissed Azul’s overtures, LATAM’s restructuring in Chapter 11 bankruptcy protection adds a layer of uncertainty to the outcome, and possibly the future composition of Brazil’s domestic market.

Summary

  • The codeshare between Azul and LATAM Airlines Brazil ran its course in a short period of time.
  • If Azul formalises its quest to acquire LATAM Airlines Brazil, a lot of business and regulatory intricacies need consideration.
  • There has been a solid amount of consolidation in Brazil during the past decade and a half, but the pandemic could usher new waves of rationalisation, if needed.

View more here: https://centreforaviation.com/analysis/reports/potential-airline-consolidation-in-brazil-more-questions-than-answers-562797

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