Azul trying to purchase bankrupt LATAM Airways’ Brazil operation, supply says By Reuters
© Reuters. FILE PHOTO: The emblem of Brazil’s airline Azul is seen on the roof of a bus at Viracopos airport in Campinas, Brazil, April 11, 2017. REUTERS/Paulo Whitaker/File Picture
By Marcelo Rochabrun
SAO PAULO (Reuters) – Brazilian airline Azul SA (NYSE:) has approached Chile’s bankrupt LATAM Airways (OTC:) Group with the goal of shopping for its Brazilian operation, a supply conversant in the state of affairs advised Reuters.
Azul’s shares rose greater than 5% in Sao Paulo on the information.
LATAM filed for chapter safety a 12 months in the past and, whereas it has secured new liquidity in that course of, it has but to current a proper restructuring plan.
Azul, managed by JetBlue Airways (NASDAQ:) Corp founder David Neeleman, stated in a securities submitting on Monday that it was prepared to steer a wave of consolidation within the Brazilian airline business, which has been devastated by the pandemic.
On Wednesday, the newspaper Valor Economico additionally stated Azul was attempting to lure LATAM and speaking to its plane lessors.
A LATAM spokeswoman stated the airline had not acquired any supply from Azul, that talks weren’t in progress and that LATAM had no intention of promoting any of its elements.
Along with intensive worldwide routes, LATAM has home operations, not simply in Brazil but additionally in Chile, Peru, Ecuador and Colombia.
Throughout the pandemic, Azul and LATAM developed a codeshare program to keep away from competing in Brazil because the market shrank, which was blessed by regulators. However that program instantly ended this week, which Azul stated was a response to its consolidation plans.
Trade analysts had stated all through 2020 that Azul would possibly attempt to purchase LATAM in Brazil. The 2 airways divide Brazil’s market with a 3rd service, Gol Linhas Aereas Inteligentes.
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