The head of Brazil’s antitrust regulator, CADE (Administrative Council for Economic Defense), has sent a strong message to Gol Linhas Aéreas and Azul Linhas Aéreas: stop discussing a potential merger in public. The warning highlights the regulator’s concern that ongoing speculation could distort market expectations and investor behavior while no formal deal has been filed for review.
Over the past year, Gol and Azul executives have made repeated comments about the possibility of joining forces. A merger between the two would create a dominant domestic carrier, potentially controlling over 60% of Brazil’s air travel market. Such a move would carry enormous implications for competition, ticket pricing, and consumer choice. Regulators worry that public hints about consolidation—even without concrete proposals—can influence the competitive landscape prematurely.
CADE’s president stressed that the watchdog is not opposed to consolidation in principle but that companies must follow proper procedures. Any merger, if formally proposed, would undergo rigorous antitrust scrutiny to evaluate risks of market concentration, potential fare hikes, and reduced connectivity for smaller cities.
For Brazil’s aviation sector, the stakes are high. Both Gol and Azul face mounting financial pressures, from high fuel costs to currency volatility and intense post-pandemic competition. A merger could provide scale efficiencies, but it would also reshape Brazil’s already concentrated airline industry. Rival LATAM, the largest carrier in the country, would see its competitive position challenged.
By intervening now, CADE is signaling its intent to maintain a level playing field and safeguard consumers. Until a formal merger proposal is submitted, Gol and Azul will need to keep their consolidation ambitions behind closed doors—at least publicly.
