Azul and Abra sign non-binding MoU to combine businesses in BrAZIL

Azul (AZUL) and Abra, the majority investor of Gol and Avianca, have signed a non-binding Memorandum of Understanding, or MoU, with the intent to combine their businesses in Brazil. The purpose of the business combination is to promote growth in the Brazilian aviation industry, through more destinations, routes, connectivity and services to consumers, with an increase in the supply of domestic and international flights. The two companies have approximately 90% complementary and non-overlapping routes. The airlines are expected to keep their operating certificates, and therefore their brands and operations, separate. The closing of the transaction is subject to Abra and Azul agreeing on economic terms of the transaction, the satisfactory completion of due diligence, entering into definitive agreements, obtaining corporate and regulatory approvals, satisfaction of customary closing conditions the consummation of Gol’s Chapter 11 plan of reorganization and receipt by Abra of consideration thereunder.