Although major changes could be afoot in Brazil, at this point the country’s leading airline LATAM Airlines Brazil seems unfazed about plans by its rivals Azul and GOL to merge.
LATAM’s composure is driven in part by yet-to-be-determined concessions that Azul and GOL will agree to, in order to gain regulatory approval for their proposed tie-up, which could potentially provide opportunities for LATAM.
Another reason for LATAM’s calm reaction is the work that the company completed during its time in bankruptcy to solidify its stature as the leading airline group in the region – a jump-start that could prove beneficial, because dynamics in Brazil could shift.
However, it’s tough not to believe that some internal planning is occurring to combat the competitive advantages that a combined Azul and GOL could achieve.