The Avianca airline continues to generate strategic moves in the air marketthis time regionally with the announcement of its union with the airline Brazilian GOLwith which both intend to conform one of the strongest air transport groups in Latin America. As a result of this, GOL and Avianca, also Viva Colombia and Peru (acquired by Avianca), they will be grouped under a new holding company called Grupo Abra.
The airlines will maintain their brands, talent, teams and culture independently, while benefiting from greater efficiencies and investments within a common business.
“Our vision is to create a group of airlines capable of facing the challenges of the 21st century and that improves the flying experience for our customers, employees, allies and communities where we operate. Our customers will benefit from having access to the best fares, more destinations, more frequencies, flights, more convenient connections, and the ability to earn and use points through airline loyalty programs. In addition, they will be able to enjoy better benefits and access to superior products and services”, said Roberto Kriete, Chairman of the Group’s Board of Directors.
At the time the alliance would be subject to customary regulatory approvals and closing conditions.
The directors of the new Holding explained that certain financial investors will invest more than US$350 million in shares of the new Holding once the transaction is closed. In addition, they will have a convertible credit in a representative investment, in exchange for a minority interest in the airline Sky Airline de Chile.
Avianca and the Brazilian airline GOL come together to create the Abra Group. Companies keep an eye out for customary regulatory approvals and closing conditions. Here we present a ???? with the key points of the alliance ???? pic.twitter.com/LYuQy1GhHS
– La República newspaper (@larepublica_co) May 11, 2022
The group highlighted that the leaders of the Holding will be Roberto Kriete, as Chairman of the Board of Directors, Constantino de Oliveira Junior, who will serve as CEO of the Group, and Adrian Neuhauser, current President and CEO of Avianca, and Richard Lark, current CFO of GOL, will act as co-presidents of the Group; in addition to remaining as presidents of each of the airline operations.
“This agreement places Abra airlines in a leadership position in the region’s air transport market, by being able to serve a population of more than 1,000 million people and a GDP close to three trillion US dollars (US$3,000 million) -generating capacity and revenue growth opportunities. Our particular and unique company structure will allow each airline to pursue its results while maintaining the independence of its brands, talent, team and culture; and, it will provide employees with more opportunities for personal and professional growth at each stage of their careers”, explained Constantino de Oliveira Junior, CEO of the Group.
Key points
- The Abra Group would be a closed capital company incorporated in the United Kingdom.
- Once the transaction is closed, it will control Avianca and GOL, which in turn will have the economic rights of Viva in Colombia and Peru.
- They will also have a credit convertible into an investment in (minority) shares of Sky Airline.
- Other investors will invest more than $350 million in shares at the closing of the transaction.
- Closure is expected to be completed in the second half of 2022.
