Low-cost airline Flybondi eyes Brazil expansion after SPAC deal
Argentine low-cost airline Flybondi is considering an expansion into Brazil, a move that could eventually be financed through public markets once it completes a merger with a blank-check company in the first half of next year. The company, which announced its plan to go public on the Nasdaq on Oct. 20 through special purpose acquisition company Integral Acquisition Corporation 1, may not see immediate proceeds from the transaction but it would be a first step in being able to tap a broader group of investors down the line, said CEO Mauricio Sana in an interview. “The move isn’t aimed at raising funds: we don’t need them, we haven’t asked for a capital injection in three years. And you never know how much you’ll get in the end,” Sana said on the sidelines of a conference. The benefit is that if next year Flybondi wants to upscale quickly “and our shareholders don’t necessarily want to give us more funds, we can do a follow-on round without having to wait a year to execute a business plan.” That’s where a Brazil expansion could come in. The company is actively analyzing the move, Sana said, but Brazil’s “aggressive” consumer protection laws and frequent fines for companies operating there are risks. “We want to be in Brazil, and we’re working toward announcing our possible entry there next year,” Sana said. “But now we’re looking at regulatory issues. If that barrier is reduced, we’ll probably go forward, we’re working on it.” The company already flies to Rio de Janeiro, Sao Paulo and Florianopolis from Argentina. An expansion would mean doing domestic routes within Brazil where Latam Airlines Group SA, Azul Linhas Aereas Brasileiras SA and Gol Linhas Aereas Inteligentes SA are dominant. Buenos Aires-based FB Lineas Aereas SA began operations in 2018 when discount airlines were first allowed to fly in Argentina, increasing competition for state-owned carrier Aerolineas Argentinas. Flybondi’s market share for domestic routes is up to 22% and 5% for regional routes as of October, according to the latest government data. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-11-15/unaligned/low-cost-airline-flybondi-eyes-brazil-expansion-after-spac-deal
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Low-cost airline Flybondi eyes Brazil expansion after SPAC deal
Argentine low-cost airline Flybondi is considering an expansion into Brazil, a move that could eventually be financed through public markets once it completes a merger with a blank-check company in the first half of next year. The company, which announced its plan to go public on the Nasdaq on Oct. 20 through special purpose acquisition company Integral Acquisition Corporation 1, may not see immediate proceeds from the transaction but it would be a first step in being able to tap a broader group of investors down the line, said CEO Mauricio Sana in an interview. “The move isn’t aimed at raising funds: we don’t need them, we haven’t asked for a capital injection in three years. And you never know how much you’ll get in the end,” Sana said on the sidelines of a conference. The benefit is that if next year Flybondi wants to upscale quickly “and our shareholders don’t necessarily want to give us more funds, we can do a follow-on round without having to wait a year to execute a business plan.” That’s where a Brazil expansion could come in. The company is actively analyzing the move, Sana said, but Brazil’s “aggressive” consumer protection laws and frequent fines for companies operating there are risks. “We want to be in Brazil, and we’re working toward announcing our possible entry there next year,” Sana said. “But now we’re looking at regulatory issues. If that barrier is reduced, we’ll probably go forward, we’re working on it.” The company already flies to Rio de Janeiro, Sao Paulo and Florianopolis from Argentina. An expansion would mean doing domestic routes within Brazil where Latam Airlines Group SA, Azul Linhas Aereas Brasileiras SA and Gol Linhas Aereas Inteligentes SA are dominant. Buenos Aires-based FB Lineas Aereas SA began operations in 2018 when discount airlines were first allowed to fly in Argentina, increasing competition for state-owned carrier Aerolineas Argentinas. Flybondi’s market share for domestic routes is up to 22% and 5% for regional routes as of October, according to the latest government data. <br/>
