Recently, a lot is happening in the aviation industry. One such landmark decision is made by GOL and Avianca Airlines recently. Both companies have come up with a consideration to create a holding company in the name of Abra Group. According to this deal, the abra Group will be managing both the companies and this will be beneficial for air travel in Brazil as well as in Latin America.
The Working of the Abra Group
The Abra Group is formed in such a way that Avianca’s principal shareholders along with GOL Airline’s majority shareholders will be co-controlling the company. With the deal, both airline companies have created one of the largest airlines in the region that will match LATAM Airlines in Chile.
Though the Group will be controlling both the airlines to maintain uniformity, still, both Avianca and GOL Airlines will be operating and maintaining their individual brands as well.
While both the airlines are all set to start up with the new group, the group has also invited other investors to invest. As of now, it is expected that an investment of $350 million will come from different financial investors in the second half or by the closing of the deal.
Benefits of the Deal
While the two airlines are quite strongly moving forwards with the deal, there are certain speculations about issues that have taken place in the past. One of the major issues is the story of Avianca Airline’s operations getting suspended by Brazil in the year 2019.
Another major issue that many experts are talking about is that American Airlines has a stake in GOL Airlines. American Airlines have not yet responded to the deal that is about to take place.
Amidst such speculations, experts are also talking about the several benefits that the Abra Group is going to fetch after the deal.
Avianca Airlines is a leading name in Ecuador and Central America. With this deal, they will also enter the aviation market of Latin America. Similarly, GOL Airlines is one of the famous airlines in Brazil and this deal will open doors to enter into the American market.
Abra Group will be focussing on offering lower ticket pricing as well as expanding its routes to different parts of the world. This is not just good news for the group and the holding airlines but also for the passengers who will be able to get higher options at lower costs for air travel.