Understanding partnerships, consolidation, and mergers in Latin America

Latin American airline consolidation is proceeding, although the path and timing is difficult to forecast.

Avianca and GOL are seeking to create a pan-regional airline group capable of competing with LATAM on an equal footing.

Regional aviation leaders are projecting that three or four major airline groups will emerge, either via partnerships, mergers or other tie-ups.

This was the topic of a panel discussion at the CAPA Latin America Aviation & LCCs Summit in Querétaro, Mexico on 31-Aug-2023 and 1-Sep-2023.

The session was moderated by Heico Aerospace, SVP Government & Industry Affairs, Alex de Gunten and included Viva Aerobus, Chief Alliance Officer, Javier Suarez; Atka Capital, Managing Partner, Mike Powell; and Azul, Revenue Management & Network Planning Director, Andre Mercadante Americo.

Some of the topic areas covered included:

• Is the Latin American market best served by the transition towards ever larger and more powerful airline groupings?
• Will regional governments allow more large multi-national airline groups to form? Will the regional market come to resemble Europe, with its large airline groups based around carriers with state holdings?
• Given regional aviation regulations and other limitations on synergies and networks, how successful can cross-border consolidation be? Should the model be to concentrate on partnerships rather than mergers?

You can view the full session via the following CAPA TV recording.