In a live to Info Money, the president of Blue Airlines, John Rodgerson, stated that there is indeed interest in buying rival LATAM Brasil. The CEO of the company based in Campinas also stated that the purchase will be something that will benefit the country and the market.
“It's not a rumour. I have been very vocal in this regard [the purchase of Latam]. I am very interested. It is everyone's interest, our customers, pilots, flight attendants, airports. Having a strong airline here in Brazil is in everyone's interest. I think this must happen. Here in Brazil there are a lot of chicken flights. If you worked at a company like Avianca, which started and then stopped, imagine a pilot who stayed 10, 15 years at the company and, suddenly, it goes into judicial recovery. Imagine the stress of that family”. John Rodgerson said live with Info Money.
“Brazil needs big, strong companies that pay taxes, that buy aircraft, that open new destinations, I think this is very good for the market. You have to understand that Brazil is an open market, anyone can enter. Why can't you have companies doing mergers here in Brazil? I think this is healthy for Brazil and for the sector”. Completed.
The President of Azul also recalled all the investments made by the airline in recent years and highlighted the development of the airline sector in Brazil in the resumption of travel.
Check out the live of the president of Azul with Info Money.
“Deputies should look at this [the acquisition of Latam by Azul] in this context. If you look at other countries in the world, Air Canada has 70% of the Canadian air market, Avianca has 70% of the Colombian market, LAN had 85% of the Chilean market. Stop thinking this can't be beneficial and look at the opportunities.”
Regarding LATAM Brasil, the executive commented on the company's judicial recovery process and sent a 'message' to the deputies who are evaluating the purchase of the Brazilian company:
“One deputy thinks one thing, another thinks another. What I would say to all deputies who care about jobs here in Brazil is that this [approval of the purchase of Latam by Azul] is very beneficial to the country”. John said.
Negotiation depends on the approval of creditors and the government
The negotiation of the sale of LATAM Brasil to Azul depends on the broad approval of creditors in the LATAM Group's judicial recovery plan. With the company being governed by Chapter 11 rules, shareholders can decide only a few details about the fate of the airline.
Another problem, to be faced by LATAM, is that one of the main creditors of the airline, Oaktree Capital Management and Knighthead Capital, holds bonds or shares of Azul. These two companies can apply pressure for the billionaire sale of LATAM Brasil to Azul.
On Friday (20) a public hearing is scheduled to take place on the purchase of LATAM by Azul and what the effects will be on the sector. The debate takes place from 9 am, in plenary 7.
The request for holding the hearing is from the deputy Eduardo Bismarck (PDT-CE). He fears the impact for the Brazilian consumer with fewer airlines in the dispute for the market.
Source: InfoMoney
