Chamber of Deputies Committee debates possible purchase of Latam by Azul

The Chamber of Deputies Tourism Committee anticipated the moves and held a public hearing on Friday (20) in which it discussed the possibility of Azul’s purchase of Latam and its effects on the country’s air transport. Naturally, this is an early debate at a time when information about such a process is still scarce.

The request for the holding of the hearing was made by Deputy Eduardo Bismarck (PDT-CE). He fears the impact on Brazilian consumers with fewer airlines competing for the market. “Prices are likely to rise due to the lack of competitors. It is worth remembering that today prices are below those of recent years, especially due to the crisis in the sector”, he pointed out.

Attended the event:

  • the coordinator of the Department of Economic Studies of the Administrative Council for Economic Defense (Cade), Ricardo Medeiros de Castro;
  • the technical manager of Grants and Registration of the Superintendence of Operational Standards of the National Civil Aviation Agency (Anac), Sérgio Alexsander Leitão; and
  • the National Secretary for Civil Aviation, Ronei Glanzmann.

Some phrases from the event:

“We are not afraid of an eventual merger and acquisition process in this market. Of course, this goes against our agenda of promoting greater competition, but we understand that this is a solution that has to be provided by the market. In this specific case [da Azul e Latam] it appears to be a hostile purchase attempt, where the seller (Latam) publicly announces that he is not selling, the buyer (Blue) announces that he is trying to buy through the court-supervised reorganization, so this technically constitutes a hostile purchase attempt. We follow this process, but it is imminently private and the government cannot interfere in respect of the constitutional principles of economic freedom” – Ronei Glanzmann

“Currently, ANAC does not have previous analyses. After carrying out these corporate transactions, ANAC remains in the exercise of its legal powers to verify, mainly, the maintenance of the operating conditions of these companies, as provided for in the COA and any technical adjustments. Among these technical aspects are information on aircraft, fleet adjustments or fleet integration, if applicable” – Sérgio Alexsander Leitão

The full session is available on the Camera YouTube channel

News from the news agency Câmara de Notícias