Brazil’s Gol to take lead in Latin American airline consolidation

Gol is eager to move forward with its deal to acquire Map Transportes Aéreos, a move that CEO Paulo Kakinoff believes will put it at the forefront of consolidation in the airline industry spurred by the Covid-19 pandemic. “I do believe this is [the] kind of trend created by the pandemic,” he told investors during a briefing marking the 17th anniversary of Gol’s listing on the New York Stock Exchange on Thursday. Gol “is about to reinforce, re-emphasize its role in promoting regional consolidation” with the Map deal, he added. Kakinoff’s comments were in response to analyst questions on Gol’s view of another possible combination: A merger of Azul and Latam Brasil, which would create a clear domestic leader in Brazil. He declined to speculate on whether a deal could happen — most analysts believe Azul could make a move for the carrier through Latam Airlines Group’s U.S. Chapter 11 bankruptcy restructuring — saying it is one of “several” possible scenarios. However, Kakinoff believed that an Azul-Latam Brasil tie up could pass regulatory muster if it happened. Gol’s 28m reais ($5.7m) deal for Map, while touted as a way to expand its regional reach, is seen as a play for more slots at sought-after São Paulo Congonhas airport. Map has the rights to up to 26 daily flights at Congonhas, which — if the deal is approved — would boost the Gol’s departures to up to 150 a day compared to 118 at Latam Brasil and 21 at Azul. The airline also says the acquisition will expand its presence in Manaus where Gol plans to replace Map’s ATR turboprops with Boeing 737-700 jets on regional routes.<br/>