The trend is that the offer of flights to destinations operated by the two airlines will decrease, however, the number of available regions will increase.

Any frequent passengers and first-time tourists have wondered what changes, in practice, after Gol and Avianca announced on Wednesday morning, 11, an agreement for the creation of Grupo Abra, the holding company that will control the two airlines.

In addition to controlling Avianca and Gol, Grupo Abra will also have a non-controlling interest in Viva Air’s operations in Colombia and Peru, and a minority interest in Sky Airline in Chile.

The transaction, which still needs to go through regulatory approvals, is expected to be completed in the second half of 2022. The idea of ​​the union is “to create a leading group in air transport in Latin America”, according to a statement sent by the companies.

Will Gol change his name?
Also according to the statement, Gol and Avianca will maintain independent operations, maintaining their respective brands, cultures and leadership. However, the idea is that, with the new organization, companies benefit from “greater efficiency and investments made by the same controlling group”, the companies said.

Even with independent operations, the natural way is for the two companies to make adjustments to their air network in search of cost optimization, mainly with the creation of codeshare agreements, in which Gol passengers will be able to travel on Avianca aircraft, and vice versa. back Something that, immediately, can lead to a decrease in the offer of flights.

“It makes no sense, for example, to have two flights from Brazil to Argentina, one from Avianca and the other from Gol. The natural tendency is for companies to maximize operations, creating intelligent routes to avoid this overlapping of destinations”, says Renan Melo, lawyer at ASBZ Advogados and member of the Special Commission on Aeronautical Law of the OAB.

However, although the offer of available flights may decrease, on the other hand, the number of destinations may increase. Today, for example, there are no direct flights from the main Brazilian capitals to secondary Colombian cities, such as Cali. Something that could change with the merger of Gol and Avianca.

“Even if there are no direct flights, the acquisition by customers will be facilitated, through a single contract. The two companies have a feature in common, which is that they have an air network that covers many regions of both countries. So, both can take advantage of this structure that already exists. With this, Brazilians will be able to arrive more easily in cities in the interior of Colombia, Peru and Chile”, says Melo.

Avianca has a fleet of 110 aircraft, operating 130 routes in Latin America. Gol has 142 aircraft and, in Brazil alone, operates more than 35 destinations.

Will the ticket be cheaper?
The union of the companies, above all, is focused on cost reduction, something that becomes even more urgent in the midst of the scenario of high fuel prices. In the accumulated result for the year, aviation kerosene, for example, soared 48.7% according to Abear (Brazilian Association of Airlines).

“Abra will provide a platform for operating airlines to further reduce costs, realize greater economies of scale, continue to operate a fleet of state-of-the-art aircraft, and expand their routes, services, product offerings and loyalty programs” , says the statement.

Among the costs that can be reduced are, for example, contracts for slots, maintenance of staff on the ground and even costs with the maintenance of own offices at airports. However, the possibility that these savings will be passed on to the final consumer is uncertain.

“This can contribute to cheaper ticket prices, but the scenario for airlines is quite complicated, with the pressure of high commodities. So, what can happen is just an attenuation of the price increase in the end”, says Melo.