SAO PAULO--Brazilian airlines Azul Linhas Aereas Brasileiras and
Trip Linhas Aereas said Thursday they expect regulatory approval
for their merger by the end of this year and have filed
code-sharing requests to begin integrating their flights.
Azul, the airline headed by JetBlue Airways Corp. (JBLU) founder
David Neeleman, and Trip said Thursday the merged company, which
would be Brazil's third-biggest airline with a 16% market share,
would operate under the Azul brand. The companies have started the
gradual shift to the unified brand, but because they are awaiting
antitrust approval, they aren't carrying out a full integration as
they must be able to reverse those steps should the merger not be
given the go-ahead.
To start integrating the companies, Azul and Trip have
formalized code-sharing requests with civil-aviation authorities,
which allow each company to sell seats on the other company's
flights.
Azul and Trip announced in May they planned to merge to better
compete with bigger rivals Gol Linhas Aereas Inteligentes SA
(GOLL4.BR, GOL), which recently took over regional carrier WebJet,
and Tam SA, which in June finalized its merger with Chile's Lan to
form Latam Airlines Group (LAN.SN).
During a Thursday presentation, the combined Azul said it also
had requested additional flights at Guarulhos international airport
in Sao Paulo. It is seeking 20 pairs of slots, or take-off and
landing times, at Brazil's biggest airport.
Write to Paulo Winterstein at paulo.winterstein@dowjones.com
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