The Brazilian airline Gol Linhas Aereas Inteligentes SA and the Colombian Avianca announced on Wednesday an agreement to create a leading Latin American air transport holding company called Grupo Abra that will put the two brands under the control of a single company.
The Open Group It will be controlled jointly by the main shareholders of Avianca and the majority shareholder of Gol, they said, explaining that both airlines would continue to operate independently and maintain their respective brands.
The airlines reported that other investors have pledged to contribute up to $350 million into the Abra Group upon closing of the deal, which is expected in the second half of 2022.
Abra, who has called herself a “Pan-Latin American airline network“, will also own a 100% non-controlling economic interest in Viva’s operations in Colombia and Peru and a minority interest in the Chilean Sky Airlines.
Roberto Kriete will serve as chairman of the group’s board of directors, while Gol founder Constantino de Oliveira Junior will serve as executive chairman. Avianca CEO Adrian Neuhauser and Gol CFO Richard Lark will serve as co-chairs.
“This agreement places Abra airlines in a leadership position in air transport within the region -which serves a population of more than one billion people and a GDP of almost 3 billion dollars-, providing important opportunities for capacity and revenue growth,” Oliveira said.
Abra would focus on achieving synergies to ensure cost reductions and route expansion, the companies said, without providing details.
Gol said in a separate filing that the transaction involved its majority shareholder, the MOBI FIA investment fund, and certain shareholders of Avianca Holding, including Kingsland International, Elliott International and South Lake One.
MOBI FIA will contribute its Gol shares to the new company in exchange for Abra ordinary shares, the Brazilian airline revealed, specifying that the nascent holding company will be a limited company incorporated under the laws of England and Wales.