Bankrupt Avianca Brasil Lures Gol, LATAM Bids, Azul Role Uncertain

Brazilian airline Avianca Brasil plans to split into seven units that it will auction off separately, with rivals LATAM Airlines and Gol Linhas Aereas Inteligentes both planning to bid for some of those parts in a bankruptcy auction, Reuters reported. The plan to split up the carrier, filed in a Brazilian court on Wednesday, is a significant departure from a previous proposal and adds fresh competition for some of the most-coveted airport slots in Brazil. But it also shuts the door on a previous offer by competitor Azul SA. Azul signed a preliminary agreement this month to pay at least $105 million for a selection of Avianca Brasil’s assets, a proposal that had been considered a coup by analysts who saw it as a way for Azul to challenge its bigger competitors: LATAM and Gol. Read more

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