Aviation
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Brazil
One more chapter
Latam accuses Azul of being a monopolist; Azul rejects the arguments
Airbus A350
Latam Brasil
Adam Moreira, CC BY-SA 4.0, via Wikimedia Commons
Rafael Ramos
9/2/2021
Azul has been working with creditors of Latam for a possible purchase of the Chilean company in Brazil. Some sources say that Azul intends to buy the entire Latam Group, although initially the possible purchase is focused on Brazilian operations.
In light of this, Latam's CEO, Jerome Cadier, said yesterday, on the 1st of this month, that Azul's intention to make a proposal to buy Latam Brasil is supposedly a way of hindering the exit from the Chapter 11 process ( the judicial reorganization of Latam in the USA), in order to increase Azul's monopoly in some destinations.
Latam will present its plan for the resumption of operations and the exit from Chapter 11 next week. The presentation of the debt restructuring plan is scheduled for the next 15th.
"Latam Brasil is not for sale. Azul's arguments to try to defend an eventual consolidation are not sustained in 30 seconds of analysis", says Jerome Cadier, CEO of Latam, in an interview to Folha de São Paulo newspaper.
The CEO also claims that ticket prices should go up if the purchase actually takes place. "What we want is a competitive market, in which companies fight aggressively [...] Not a consolidation in monopoly routes, as Azul does [...] To say that Brazil cannot support three airlines, it would need having two is nonsense”.
During the AirConnected event, Azul CEO John Rodgerson countered the criticism, saying that cities where only Azul operates did not have flights from other companies before.
Embraer E-190
Azul
aeroprints.com, CC BY-SA 3.0, via Wikimedia Commons
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Rafael Ramos
Aviation enthusiast from an early age, he had his first contacts with the area developing that good old habit of spending dozens of hours in front of the screens of Micrsoft Flight Simulator and other simulators. With a solid background in various technological areas, including engineering and chemistry, Rafael has rejoined aviation as editor and author of articles and materials on our portal, providing invaluable help to the dynamics and expansion of the website and the aeronautical community, bringing us the news and updates so indispensable for us to remain current in our area of operation.
   
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