The CEO of Azul (), John Rodgerson, stated that he discussed with President Lula, about 8 months ago, his plan to join forces with Gol (). The memorandum of understanding, signed last Wednesday (15), began conversations about a possible . According to Rodgerson, Lula supported the idea of creating a stronger company in Brazil, stating that “there is a lot of chicken flying, which is very bad for the crew and for everyone”. The information is from Folha de S.Paulo.
The executive also told Bloomberg Línea that the new company should begin operations next year.
According to Rodgerson, the overlap between Gol and Azul’s networks is only 10%, which should not create major challenges for approval of the business combination by the Administrative Council for Economic Defense (Cade).
According to him, Gol should complete the judicial recovery process in the USA in mid-April or May this year. Completing the restructuring is a condition for the merger to get off the ground.
For Rodgerson, the trial at Cade should take six to nine months, but the idea is to start the negotiation process at the antitrust body now.
If the companies secure regulatory approval — including clearing antitrust hurdles — Azul and Gol would join forces as a single entity with shares listed in Brazil, according to a copy of the memo.
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Under the agreement, Azul will appoint the CEO of the combined holding, while Gol will appoint the chairman. Various details, including the name of the new company, will be discussed in the negotiation process.
The board of directors will have three representatives from Azul, three from Gol and three from the market.
Regarding participation, the executive said that the idea is for it to be half and half, but it will depend on the recovery process and fundraising by Gol. Abra, Gol’s current controller, will have at least 10% of the new business.
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Azul’s CEO said that the brands will remain independent, but the connection will be joint, ticket pricing will be one, the entire operating system will be integrated.
“On domestic flights, there may eventually be a flight from Azul and another from Gol due to seat availability,” the executive told Folha. “It doesn’t matter if the passenger is going to buy an Azul or Gol ticket. This means that, if the customer buys a ticket from Brasília (DF) to Congonhas (SP) via Azul, he can return via Gol.”
