Brazil's GOL and Colombia's Avianca have signed a deal that will create one of the largest airline groups in Latin America.
Subject to regulatory approvals and closing conditions, the Abra Group will control Avianca and GOL and bring together their brands under a single holding. Through recent investments made by Avianca's and Viva's shareholders, the group will also own a non-controlling 100% economic interest in Viva's operations in Colombia and Peru as well as convertible debt representing a minority interest investment in Chile's Sky Airline.
"Together, Avianca and GOL will anchor a pan-Latin American network of airlines that will have the lowest unit cost in their respective markets, the leading loyalty programs across the region, and other synergistic businesses," a press release states.
"Avianca and GOL will continue to maintain independent brands, talent, teams, and culture while benefiting from greater efficiencies and investments under common aligned ownership."
Abra says it will provide a platform for the operating airlines to further reduce costs, achieve greater economies of scale, continue to operate a state-of-the-art fleet of aircraft, and expand routes, services, product offerings and loyalty programs.
Roberto Kriete, who will serve as Abra Group's Chairman, grew TACA in the 1980s into the leading Central American airline before merging it with Avianca Airlines in 2009. He also founded the leading Mexican carrier Volaris in 2006.
Constantino de Oliveira Junior, who will serve as the group's CEO, pioneered Latin America's low-cost carrier revolution when he founded GOL in 2001. Together with the acquisition of VRG in 2007 and Webjet in 2011, he led the company's growth to a market-leading position.
The closing of the transaction is expected to be completed in the second half of 2022, subject to customary closing and regulatory conditions.
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