Azul's leadership team is “really confident” that the combination of business with Brazilian competitor GOL will bring about long-term growth.
That explained why Azur believes the combination makes sense in the company's recent year-end revenue call, according to Azur President Abi Shah.
“There's a very low overlap between Azul's and GoL's networks,” he says. “And we think low overlap is a key factor in future growth.”
Azul wants to grow its domestic network into 200 cities, and the company believes it could reach the target of “if you have these non-duplicate networks, if you have very complementary networks.”
The carrier currently travels to over 150 domestic destinations.
Under a memorandum signed by Azul and Abra Group in January, the GOL and Colombian bird parents-companies are investigating the possibility of creating Brazil's largest airline.
Azul and GOL maintain both individual brands and operating certificates for their customers.
GOL is currently undergoing a Chapter 11 restructuring process in the US Bankruptcy Court, but Azul recently completed its fiscal restructuring by eliminating its debt of R$12.3 billion ($2.1 billion).
GOL currently operates nearly 140 jets, airline business data shows. Azul currently flies over 160 aircraft, including ATR turboprops on regional routes.
Azure says the deal will surge in Brazil's domestic market growth and connect air travelers from more countries to international destinations.
“We believe that we can build an airline that can compete globally when it comes to fleets, when it comes to engines, when it comes to OEMs, when it comes to access to capital, and when it comes to engines. “I think this is all in our technical case.”
Executive Secretary David Nielleman said in the same call that Azur is still creating a new domestic market in Brazil and is seeking “access to demand that they have never been accessed before.”
“Our unique combination of fleets and networks allows us to be our only carrier on 82% of our route, many of which are in Brazil's fastest growing regions,” says Neilman.
