Brazilian Gol and Colombian Avianca form a new group: Abra

The Colombian airline Avianca and the Brazilian Gol announced on Wednesday their union within the same group, Abra, a new heavyweight in the sector in Latin America.

Avianca and Gol “will maintain independent brands, talent, teams, and culture while benefiting from greater efficiencies and investments under common aligned ownership“, the companies explained in a press release.

In the aggregate, the airlines under the Abra Group ownership will offer customers the largest network of complementary routes, with minimal overlap, across their markets.

“This agreement places Abra’s airlines in a position to lead air travel within the region, providing significant opportunities for capacity and revenue growth,” said Constantino de Oliveira Junior, CEO of Gol and the Abra Group, quoted in the press release.

The agreement must still be validated by the financial authorities of Brazil and Colombia. The holding company’s headquarters will be based in London.

The Abra group will also control Viva’s operations in Colombia and Peru and have a minority stake in the Chilean Sky Airline.

With a fleet of more than 140 planes, Gol is Brazil’s second-largest airline in terms of market share, with 33.6%, behind the Chilean-Brazilian Latam (35.1%). Avianca, which has more than 110 aircraft, is the market leader in Colombia and Ecuador.