Azul interested in take-over of LATAM Brazil

According to various news agencies, Azul Linhas Aéreas is interested in taking-over the Brazilian-operations of LATAM. The take-over would be part of Azul's post-pandemic plan to take the lead in a consolidation in the Brazilian airline-scene, which has been heavily impacted by the Corona-pandemic.

Last year LATAM Airlines filed for bankruptcy protection and is since then going through a reorganisation process. According to the airline, it expects to have its Brazilian-operations at 90% by December and is not interested in a sell-off at this time.

This, however, hasn't stopped Azul from approaching LATAM's shareholders in an attempt to woo them in selling their stakes, which would effectively means a break-up of LATAM.

LATAM Airlines was founded in 2012 when LAN Chile and TAM from Brazil merged. Since then it has grown to the largest airline group in Latin America, with subsidiaries in Colombia, Ecuador, Paraguay and Peru. It also had a division in Argentina but this one was closed down last year. Pre-pandemic the airline had a fleet of over 300 aircraft but is now in the process of reducing the fleet.

Azul in its turn was founded in 2008 and is controlled by David Neeleman, the same person who founded JetBlue and, more recently, Breeze Airways. It currently has a fleet of 153 aircraft.

If the take-over happens, it will certainly get close scrutiny from Brazil's anti-competitor authorities as both airlines combined will have a domestic market share of over 70%.