Official announcements from Gol or court documents related to the restructuring process

Azul and Gol Sign Merger Agreement Targeting 60% Market Share by 2026

Jan 16, 2025, 12:38 PM

Brazilian airlines Azul and Gol have signed a non-binding memorandum of understanding to explore a potential merger, aiming to create a major airline in Latin America. The agreement, signed between Azul and Abra, the controlling shareholder of Gol, is contingent upon Gol's successful completion of its Chapter 11 bankruptcy restructuring in the U.S. The proposed merger would combine the operations of the two airlines, potentially resulting in a company controlling over 60% of the domestic market. The deal is subject to approval by Brazil's antitrust regulator, the Administrative Council for Economic Defense (Cade), and other regulatory bodies. The merger is seen as an opportunity to strengthen the Brazilian aviation sector, with Azul's CEO John Rodgerson stating that the new entity could be operational by 2026. The move follows a period of financial difficulties for both airlines post-Covid, with Azul recently completing a debt refinancing and Gol seeking to emerge from its restructuring process.