Brazilian airlines Azul and Gol plan merger
Two companies combined will create the biggest airline in Brazil, by far.
Azul is the best commercial airline in our country. Gol is the leader in number of trips.
These two Brazilian companies are trying to combine the two strategies into one.
After years of Lan Chile and Tam merging and turning in Latam, Azul and Gol will try to make the same. ABRA (the most relevant Gol's investor) and Azul have signed a non-binding Memorandum of Understanding (MoU) and will wait for regulatory approvals.
Bad to competition, bad to customers.
Looking back and analyzing the deal with Lan and Tam, we can predict the future: challenging.
Both stocks rose on the announcement today.
Warren Buffet doesn't invest in airlines. Commercial aviation has low level margins; in Brazil it is not different.