In the presentation, the CEO of the area in Brazil, Jerome Cadier, was cautious when commenting on the agreement between Gol () and Blue () about a possible merger. “We still have no clarity about the proposal and the mitigation measures,” he said, when asked about the subject of journalists. However, the executive says he has doubts if a business combination is indeed the only alternative for competitors to survive.
“I have my doubts if a business combination is the best way to solve a debt problem,” said Cadier. He remembers that Latam followed the path of Chapter 11 (equivalent to a judicial recovery in the United States) and came out “stronger than ever, without any need for market concentration.”
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Cadier says that the operating margins of the Brazilian air sector are “quite healthy”, but the challenge is dealing with high debts in a high interest rate environment. “This makes a lot of this operational margin not to appear in net profit,” he said.
“If that [a fusão] It is inevitable or not, it is difficult to say at this point in the championship. But they are companies that operate very well and from a point of view of punctuality, cancellation, service, are at the best level worldwide. The asset is very good, the problem is debt, ”he said.
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Deep analysis, city to city
The CEO of Latam in Brazil says he is sure that Cade (Administrative Council for Economic Defense) will make a profound analysis of the proposal and present adequate mitigation measures.
“What we do not want is a more concentrated market, with fewer options for passengers, higher prices and less growth, that’s what we have to avoid,” said Cadier.
“Talk about 60% [de fatia de mercado que as concorrentes teriam] It’s one thing, but when we look at the city, we will see some where the concentration can reach 90%, ”said the CEO.
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Cadier says Latam will enter discussions about this operation when there is more clarity about the process.
“We have to wait a while to know exactly how it will happen, but we will participate in this process, no doubt. To be able to make the recommendation that makes the most sense, both for the dynamics of the Brazilian market and the Brazilian client and passenger. ”
