Customers of Azul and Gol, will have access to
more destinations, routes, products and services. The companies
have almost 90% complementary routes, will maintain their
independent operating certificates and brands
SÃO
PAULO, Jan. 15, 2025 /PRNewswire/ -- Azul and
Abra, the majority investor of Gol and Avianca, have announced
today they have signed a non-binding Memorandum of Understanding
(MoU) with the intent to combine their businesses in Brazil. The intended structure, the result of
a combination of Azul and Gol, will position Brazil at an increased level of global
strength in a highly globalized sector. The purpose of the business
combination is to promote growth in the Brazilian aviation
industry, through more destinations, routes, connectivity and
services to consumers, with an increase in the supply of domestic
and international flights. The two companies have approximately 90%
complementary and non-overlapping routes. Although the MoU provides
for the unification of strategy, the airlines are expected to keep
their operating certificates, and therefore their brands and
operations, separate.
The MoU, which includes governance and capital
structure agreements, formalizes Azul and Abra's intention to move
forward with the next steps in a combination of their businesses
and marks the beginning of the process for regulatory approvals.
The intention to materialize synergies between the airline networks
and the use of the Azul and Gol´s fleets result in benefits for the
consumer, such as more options and products; and for Brazil, with the increase of new destinations
served by Brazilian aviation.
"Azul was created with the aim of expanding the
Brazilian airline market, seeking to increase Brazilians' access to
air travel, regardless of where they are in the country, through
expanded connectivity. This combination of forces would provide the
opportunity to strengthen the sector, increasing the number of
flights on offer, reaching more than 200 cities served in
Brazil and the ability to compete
in a highly globalized sector," says Azul's CEO, John Rodgerson. "Increased connectivity and job
creation are some of the many positive results expected from this
agreement, while also delivering high quality service and the
search for the best value for money for the consumer," he adds.
The proposed combination represents a major
development for the national aviation industry and all the economic
activity facilitated by a mode of transport of such importance for
a continental country. With more than 220 million inhabitants and
around 110 million air journeys a year, the Brazilian market is
less developed than that of several neighboring countries and has
enormous potential for expansion. The MoU announced today seeks to
develop the industry in an accelerated manner.
The parties have agreed to a business principle
that any combination will result in net leverage of the combined
entity that will be at least comparable to the net leverage of Gol
at the time of the Transaction and after consummation of its plan
of reorganization.
The closing of the transaction is subject to Abra
and Azul agreeing on economic terms of the transaction, the
satisfactory completion of due diligence, entering into definitive
agreements, obtaining corporate and regulatory approvals (including
from the Brazilian antitrust authorities), satisfaction of
customary closing conditions the consummation of Gol's Chapter 11
plan of reorganization and receipt by Abra of consideration
thereunder.
About Azul
Azul S.A. (B3: AZUL4, NYSE:
AZUL) is Brazil's largest airline
in number of flights and destinations served, with over 1000
flights per day to more than 160 cities. With an operational fleet
of more than 160 aircraft and more than 14,000 crew members, Azul
flies more than 300 direct regional, domestic and international
routes. In 2022, Azul was named the most on-time airline in the
world, according to the OnTime Performance-OTP Review report by
Cirium - the world's leading reference for operational data in the
aviation industry. In addition, in 2020, Azul was elected the best
airline in the world by TripAdvisor Travelers' Choice, being the
only Brazilian carrier to be awarded with both prestigious industry
recognitions.
For more information, visit
www.voeazul.com.br/imprensa.
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SOURCE Azul S.A.
