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January 17, 2025
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Minister says merger between Azul and Gol could reduce ticket prices

Minister says merger between Azul and Gol could reduce ticket prices

The Minister of Ports and Airports, Silvio Costa Filho (photo), said that the possibility of a merger between two of the three major airlines operating in Brazil – Azul and Gol – could be positive for the country, including in the sense of avoiding increase in fares, as they would result in a decrease in the number of unoccupied seats on aircraft.Minister says merger between Azul and Gol could reduce ticket prices

The statement was made this Thursday (16), in Brasília, during breakfast with journalists, one day after Azul and Abra (holding which controls Gol) have signed a memorandum of understanding aiming at the partnership which, when consolidated, could result in a company with a share of over 60% of the national market.

Costa Filho stated that, to be effective, the merger will also need approval from the Administrative Council for Economic Defense (Cade). “We also have Anac and the press playing an oversight role. I believe that Cade will not allow the wrong move in this merger. But we will wait”, argued the minister when guaranteeing that abusive increases in the amounts charged for airline tickets will not be allowed by these bodies.

Increase in passenger flow

The minister’s expectation is, therefore, to increase passenger flow, without the risk of price increases. “She [a fusão] it can be positive, avoiding an increase in tickets because, together, they avoid flights leaving empty”, he said, remembering that, in 2024, the aircraft occupancy rate was 84%. In other words, 16% of the seats were without passengers.

“I compare this merger to what we see in party federations. They are together, but have different party funds. This possible merger will strengthen, while preserving the financial autonomy and governance of the companies. It’s a kind of helping hand. The worst scenario would be for companies to go bankrupt. The government’s focus will be on preserving jobs in the sector and strengthening the country’s airline network”, he concluded.

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