Major shareholders of Colombian airline Avianca and Brazilian airline GOL sign a historic agreement who came under the same umbrella and created a leading air transport group in Latin America under the structure of a holding company called Abra Group Limited. Now subject to standard regulatory approvals and closing conditions, Grupo Abra will combine these iconic brands under one holding company.
Through recent investments made by shareholders of Avianca and Viva, the Group will also have 100% of the economic rights of Viva’s operations in Colombia and Peru, but it cannot be controlled, and it will have credit that can be converted into an investment that represents a minority interest in the airline Sky Airline de Chile.
“Together, Avianca and GOL will be the anchor of a network of airlines in Latin America which will have the lowest unit costs in their respective markets, leading loyalty programs throughout the region, and other complementary businesses. Avianca and GOL will maintain their brands, talent, teams and culture independently, while benefiting from greater efficiency and investment within common ownership, ”they said in a statement.
Abra will provide a platform that will allow operating airlines to reduce their costsachieve a broader economy, continue to operate a fleet of innovative aircraft and expand its routes, services, product offers and loyalty programs.
Together, the airlines that will be part of the Abra Group will be able to offer their customers the widest and most complementary network of routes with minimal overlap between markets.
Avianca and GOL are teaming up to create the Abra Group.
The Abra Group will be controlled by the major shareholders of Avianca and the majority shareholder of GOL, and will be led by a management team “with extensive aviation experience in the region, a long history of entrepreneurship and a proven track record of success in airline growth and innovation,” they said in the statement announcing the merger.
In this sense, the paper also indicates that “the Abra Group management team will focus on building synergies that ensure the lowest cost structures for each airline in their respective markets; on expanding the network of routes, services, product offerings and loyalty programs.; and in developing new and innovative products and services that meet the current needs of passengers and cargo customers in the highly competitive air transport market in Latin America ” .
In addition, from Abra they assure that they will “strive to guarantee that airlines are leaders in enforcing environmental, social and corporate governance standards” and investors in an aircraft fleet that generates a lower carbon footprint, which will accelerate the development of the aircraft industry towards its carbon-neutral goals.
To Roberto Kriete, Chairman of the Group Board of Directors, “Our vision is to create a group of airlines capable of meeting the challenges of the 21st century. and it improves the flying experience for our customers, employees, allies and the community in which we operate. Our customers will benefit from having access to better fares, more destinations, more flight frequencies, more convenient connections, and the profitability and use of points through airline loyalty programs. “
For his part, Constantino de Oliveira Junior, CEO of the Group mentioned: “This agreement puts Abra airlines in a leadership position in the region’s air transport market. Our specific and unique company structure will allow each airline to pursue its results while maintaining the independence of its brands, talent, team and culture; and, it will give employees more opportunities for personal and professional growth at every stage of their careers. ”
Source: Clarin