Principal Shareholders of Avianca and Controlling Shareholder of GOL to Create Abra Group, a Leading Air Transportation Group Across Latin America
-- Subject to customary regulatory approvals and closing conditions, Abra will control Avianca and GOL and bring together their iconic brands under a single group --
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Through recent investments made by Avianca's and Viva's shareholders,
-- Airlines will maintain independent brands, talent, teams, and culture while benefiting from greater efficiencies and investments under common aligned ownership --
-- Customers to benefit from the best fares, access to more destinations, more frequent flights and seamless connections, and the ability to earn and use points across LifeMiles and Smiles, the brands' market-leading loyalty programs --
Through recent investments made by Avianca's and Viva's shareholders, the Group will also own a non-controlling 100% economic interest in Viva's operations in
Together, Avianca and GOL will anchor a pan-Latin American network of airlines that will have the lowest unit cost in their respective markets, the leading loyalty programs across the region, and other synergistic businesses. Avianca and GOL will continue to maintain independent brands, talent, teams, and culture while benefiting from greater efficiencies and investments under common aligned ownership.
Abra will provide a platform for the operating airlines to further reduce costs, achieve greater economies of scale, continue to operate a state-of-the-art fleet of aircraft, and expand their routes, services, product offerings, and loyalty programs.
In the aggregate, the airlines under the
Abra's financial strength will provide long-term stability and agility to the participating airlines that will allow consistent and sustained investment in innovations and synergies.
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Roberto Kriete , who will serve as the group's Chairman, grew TACA in the 1980s into the leading Central American airline before merging it withColombia's Avianca Airlines in 2009. He also founded the leading Mexican carrier Volaris in 2006. -
Constantino de Oliveira Junior , who will serve as the group's CEO, pioneeredLatin America's low-cost carrier revolution when he foundedGOL Airlines in 2001. Together with the acquisition of VRG in 2007 and Webjet in 2011, he led the company's growth to a market-leading position. -
Adrian Neuhauser , current President and CEO of Avianca, andRichard Lark , current CFO of GOL, will serve as the group's Co-Presidents, in addition to maintaining their current roles at the airlines; further details on the Abra management team will be provided at closing.
Abra will also ensure that its operating airlines are ESG market leaders by providing enhanced governance as well as the financial strength to continue to invest in a lower carbon footprint fleet, which will significantly accelerate the airline industry's path towards meeting carbon neutrality targets.
TERMS OF THE TRANSACTION
Certain financial investors have committed to invest up to
The closing of the transaction is expected to be completed in the second half of 2022, subject to customary closing and regulatory conditions.
ADVISORS
WEBCAST AND ADDITIONAL INFORMATION
Group management will participate in a webcast at
For more information, visit www.abragroup.net.
ABOUT THE COMPANIES
AVIANCA GROUP INTERNATIONAL LIMITED includes Avianca -Star Alliance member-, LifeMiles and Avianca Cargo. In passenger transportation and with more than 102 years of continuous operation since 1919, Avianca is the leading airline in
GOL Linhas Aéreas
CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS
The information contained in this release contains "forward-looking" statements and estimates that relate to future events, which are, by their nature, subject to significant risks and uncertainties. All statements other than statements of historical fact contained in this release including, without limitation, those regarding the airlines mentioned in this release ("Airlines") or their principal or controlling shareholders ("Majority Owners") future strategy, plans, objectives, goals and targets, future developments in the markets in which such airlines operate, and any statements preceded by, followed by or that include the words "believe", "expect", "aim", "intend", "will", "may", "project", "estimate", "anticipate", "predict", "seek", "should" or similar words or expressions, are forward-looking statements. The future events referred to in these forward-looking statements involve known and unknown risks, uncertainties, contingencies, and other factors, many of which are beyond the Airlines' or Majority Owners' control, that may cause actual results, performance, or events to differ materially from those expressed or implied in these statements. These forward-looking statements are based on numerous assumptions regarding the Airlines and the Majority Owners present and future business strategies and the environment in which they will operate in the future and are not a guarantee of future performance. Such forward-looking statements speak only as at the date on which they are made. None of the Majority Owners or any of their affiliates, officers, directors, employees, and agents undertakes any duty or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law. None of the Majority Owners or any of their affiliates, officers, directors, employees, professional advisors, and agents make any representation, warranty, or prediction that the results anticipated by such forward-looking statements will be achieved, and such forward-looking statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely or standard scenario.
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