Azul and Gol Explore Merger Talks

Brazilian airlines Azul and Gol have signed a non-binding memorandum of understanding to explore a potential merger that could create the country's largest airline group, surpassing LATAM Airlines. The agreement comes as both airlines operate approximately 90% complementary routes and aim to maintain separate brands while combining operations for greater efficiency. The merger is expected to enhance customer offerings and expand connectivity, with the combined airlines handling about 60% of Brazil's domestic market. Azul's CEO emphasized the importance of having a strong national carrier to support growth, similar to dominant airlines in other countries. This move follows months of discussions amid a challenging financial landscape for Latin American carriers, many of which are restructuring post-COVID-19. The next steps will involve regulatory approvals and further negotiations to solidify the merger details.