Brazilian airline Avianca Brasil plans to split into seven units that it will auction off separately, with rivals LATAM Airlines and Gol Linhas Aereas Inteligentes both planning to bid for some of those parts in a bankruptcy auction, reported Reuters.
The plan to split up the carrier, filed in a Brazilian court on Wednesday, April 3, is a significant departure from a previous proposal and adds fresh competition for some of the most-coveted airport slots in Brazil. But it also shuts the door on a previous offer by competitor Azul SA.
Azul signed a preliminary agreement this month to pay at least US$105 million for a selection of Avianca Brasil’s assets, a proposal that had been considered a coup by analysts who saw it as a way for Azul to challenge its bigger competitors: LATAM and Gol.
Azul also last month gave Avianca Brasil a much-needed cash injection of 31.6 million reais (US$8.21 million) after it fell behind on its payroll.
Full Content: Reuters
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
FTC Urged to Enforce Rarely Used Antitrust Law Against Retail Giants
Mar 28, 2024 by
CPI
UK’s Fingleton Bolsters Team with New Additions
Mar 28, 2024 by
CPI
Britain’s Competition Regulator Clears Aviva’s Acquisition of AIG Life UK
Mar 28, 2024 by
CPI
White House Implements New AI Safeguards to Protect Rights and Safety
Mar 28, 2024 by
CPI
Denver Court Sets August Date for Kroger-Albertsons Merger Showdown
Mar 28, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Real Estate & Antitrust
Mar 27, 2024 by
CPI
Systematic National Evidence of Steering by Real Estate Agents
Mar 27, 2024 by
CPI
Compliance Now! Actionable Antitrust Advice for the Residential Real Estate Industry
Mar 27, 2024 by
CPI
Real Estate Commissions: Some Insights from the Economics of Multi-Sided Platforms
Mar 27, 2024 by
CPI
New Ideas for Promoting Real Estate Brokerage Price Competition
Mar 27, 2024 by
CPI