Gol and Avianca announce agreement to create holding Grupo Abra | Economy

The Brazilian airline Gol and the Colombian airline Avianca will be controlled by the same group, according to a deal announced this Wednesday (11).

The agreement was signed between the main shareholders of Avianca and the controlling shareholder of Gol. The holding company will be called Grupo Abra. In a statement, the companies say that the agreement aims to “create a leading group in air transport in Latin America”.

Gol and Avianca will maintain independent operations, while “benefiting from greater efficiency and investments made by the same controlling group”, according to a statement.

Avianca Group has a fleet of more than 110 aircraft and is the leading airline in Colombia, Central America, Ecuador and operates 130 routes in Latin America.

GOL operates a fleet of 142 aircraft.

“The closing of the transaction is expected to take place in the second half of 2022, subject to customary closing and regulatory conditions”, highlighted the material fact disclosed to the market.

“Abra will provide a platform for operating airlines to further reduce costs, realize greater economies of scale, continue to operate a fleet of state-of-the-art aircraft, and expand their routes, services, product offerings and loyalty programs” , says the statement.

Constantino de Oliveira Junior, founder of Gol, will be the CEO of the new group and Roberto Kriete will be the chairman of the board of directors.

According to the announcement, Abra Group Limited will be a privately held company incorporated in the United Kingdom. The group will control Avianca and GOL and, as a result, will also hold a non-controlling economic interest in Viva’s operations in Colombia and Peru and a minority interest in Sky Airline (Chile).

Also according to the statement, “some financial investors have committed to invest up to US$350 million in shares” of Grupo Abra after the closing of the transaction.

In 2020, Avianca Brasil was declared bankrupt by the courts after accumulating a billion-dollar debt. The company that ceased operating in Brazil was the trademark of Oceanair, but was not part of the group of companies of Avianca Holdings SA, based in Colombia.

Avianca Holdings entered bankruptcy protection in the US in 2020, but managed to avoid bankruptcy by having a recovery plan approved in late 2021.

* With information from Reuters

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