There’s some major airline consolidation coming to Latin America…
Continue reading: Avianca & GOL To Merge, Form Mega Airline Group
Share your questions, experiences, and thoughts below.
Avianca Brazil has always been a separate airline from the main Avianca from Columbia.
I see a train wreak coming. It's not like there ground customer service agent is great from the beginning. Flight attendant are actually ok but still. Train wreak.
I hope they both go to Star Alliance … since bankruptcy of Varig, the Star Alliance is weak in Brazil and South America
I would guess if they do anything it will be in SA. United owns more of Avianca then american does of GOL.
Unless and until they get better connectivity throughout and within the Southern Cone countries, they will never be able to compete effectively with LATAM.
On the bright side, we might be able to redeem LifeMiles on QR for the highly competitive price of GOL.
That would be amazing.
They would already gain a huge presence in Peru and Chile with Viva, and if not with Sky.
GOL and Qatar have suddenly out of nowhere ended their partnership a few months ago.
I've also been surprised by this announcement, but I'm happy to share a little more insights, based on the Latin American media (in particular the ones from Colombia):
1. The merger between Avianca and Gol should not face any major risk from anti-trust authorities, because (a) their networks/markets are largely complementary and, perhaps more importantly (b) anti-trust authorities in Latin America mainly have a national perspective.
2. The take-over of Viva (Colombia & Peru) has been completed, although technically they still don't have control. Here they face some anti-trust issues in Colombia, which is one of the reasons why they still have not assumed control.
3. Additionally, there is a debt-share deal between the newly formed group and Sky, a Chilean airline. They plan to include Sky into the commercial model. This means that the new Abra group will be strong in Brazil, Colombia, Peru and Chile. The only major market not well covered is Argentina (both Gol and Avianca fly there, but have no domestic operation).
4. In terms of business model, in my own experience, the differences have leveled out. Avianca has stopped offering Business class on short hauls, instead they offer "Plus" seating. Pretty much what Gol had already offered with "Max" for a couple of years. Intercontinental long-haul is only offered by Avianca.
5. In terms of alliances, it complicated matters. American holds a share of Gol and United tried (not successfully) to associate with Avianca, but still has ties. Viva is classical low cost, i.e. no alliance, and so is Sky. Not sure where this ends.
The media in Latin America are clear that this is mainly aiming at Latam.
As far as I know, the share United holds in Avianca is about 1% and the share American holds in Gol is about 5% ...
Well obviously anti trust is going to approve it's "merger" it's not a merger...just a conglomerate?!maybe...they approved the merger of LAN and TAM...why not the association of these two airlines...much more impressive is the fast growing of airlines like Azul airlines
Avianca has been drifting in a LCC direction for years. If the new group maintains both brands, with GOL remaining LCC and Avianca returning to its full service roots, that would be a win for everyone.