Gol, the Brazil-based airline owned by Abra Group, has called off its merger talks with Azul, another Brazil-based carrier. Each had signed a memorandum of understanding in January to combine their operations in Brazil.
Gol had entered bankruptcy in January 2024 and exited Chapter 11 in June. That same month, Azul filed for Chapter 11.
In a memo to Azul, Abra said that following the January execution of the memorandum of understanding, the company had been available for discussions on a combination and had indicated that talks could proceed in parallel to Azul's Chapter 11 case. "However, the parties have not meaningfully discussed or progressed a possible business combination for several months as a result of Azul's focus on its Chapter 11 proceeding," according to Abra, which also owns Colombian carrier Avianca.
Azul in a statement acknowledged the discontinuation of merger talks and announced the termination of the codeshare agreement with Gol, initiated in May 2024. Azul said it would honor all tickets issued under the codeshare agreement.
Source: Business Travel News