May 11. Brazilian carrier Gol Linhas Aereas Inteligentes SA (GOLL4.SA) and Colombia’s Avianca said on Wednesday they were combining under the roof of a common holding company, signaling a move toward post-pandemic Latin American airline consolidation.
The deal would create one of the region’s largest airlines, roughly matching Chile’s LATAM Airlines Group SA (LTM.SN) in terms of scheduled seats, according to global aviation consultancy ICF.
The holding company, called Abra Group, will be jointly controlled by Avianca and Gol’s main shareholders, the firms said, adding that both airlines would operate independently and maintain their respective brands.
They said other financial investors had committed to invest up to $350 million in Abra Group upon the closing of the deal, which is expected in the second half.
The move comes after Avianca completed a bankruptcy reorganization last December and agreed in April to merge with Viva – another key Colombian airline – and could attract notice from competition regulators.