Azul’s acquisition of LATAM Brasil is seen as likely by investment bank

According to a report for investors, David Neeleman’s airline may present a purchase proposal within three months

A possible proposal to buy the LATAM operation in Brazil by Azul could take place in the next three months, said a report by investment bank Bradesco BBI released on Monday.

According to analysts’ assessment, the merger between the two carriers is considered “very likely”. The report made Azul’s shares on the stock market rise 5.6%.

LATAM Brasil and Azul recently announced the end of the code share signed last year, which led to rumors that the two companies had a falling out due to purchase attempts made by the airline founded by David Neeleman.

In a statement, John Rodgerson, president of Azul, said he saw the Brazilian air travel market in the process of consolidation. Jerome Cadier, CEO of LATAM Brazil, in turn, denied that the division is for sale.Instead, he reinforced plans to return the air network to pre-pandemic levels by the end of the year.

Despite this, Azul may have a chance to take over LATAM’s Brazilian operation, according to analysts. The reason is that among the main creditors of the largest airline in South America are two investment funds that also have a stake in Azul.

John Rodgerson, Azul’s CEO (Thiago Vinholes)

If a proposal proves attractive to them, it would be possible for it to be included in the bankruptcy process that is underway in the US Courts.

To avoid market concentration, Azul could give up LATAM’s international routes, in addition to passing on slots at busy airports in Sao Paulo and Rio de Janeiro, according to the Bradesco BBI report.

LATAM Brasil was created over the airline TAM, belonging to the Amaro family, whose main executive, Rolim Adolfo Amaro, died in a helicopter accident in 2001.