Page 21 - ASUTIL 2024 Edition

INSIDER

Major commercial agreement signed by Azul and Gol

Brazilian airlines Azul and Gol Linhas Azul President Abhi Shah commented: since the end of the Covid-19 pandemic.
Aereas have announced an extensive “The partnership will bring enormous LATAM came out of Chapter 11 with an
codeshare agreement and commercial benefits to all passengers. Both networks $8 billion reorganization plan in 2022.
partnership to connect both company’s are complementary.” Gol CEO Celso Azul tidied up its balance sheet last year
networks. The agreement, announced at Ferreira added: “Gol is eager to extend the with a restructuring of corporate debt and
the end of May, also includes collaboration benefits of the agreement to all parts of Gol sought relief from debtors filing for
with both frequent flyer programs; Brazil.” Chapter 11 protection in January this year.
passengers of each airline will be able The codeshare deal happens just as Azul and Gol are respectively Brazil’s
to earn points or miles on each program. renewed speculation in Brazilian financial second and third-largest airlines by
Scheduled to commence at the end of June, circles indicates that Azul is exploring passenger traffic. At present, Azul accounts
the codeshare agreement does not require a full-scale takeover or merger with for 32% of all domestic flights in Brazil
antitrust approval from the Brazilian Gol, which is currently in Chapter 11 with Gol’s market share close to 29%.
authorities. bankruptcy protection. LATAM Brazil continues to be the largest
Brazil’s Ports and Airports Minister Another scenario would be that operator with 36% of the market.
Silvio Costa Filho said he expects the Abra, the owner of Colombian airline The Brazilian government has
codeshare agreement between Gol and Avianca, and leading shareholder in Gol been encouraging cooperation between
Azul to expand connectivity and offer more gets involved with both companies to airlines, even offering financial incentives
flight options in Brazil. create a mega Latin American carrier. in exchange for more flights and more
“The Airports ministry and ANAC, the Gol is keeping quiet about any potential routes. A Gol-Azul Alliance would be well
Civil Aviation Authority, will be monitoring agreement. But John Richardson, CEO of received.
any consequences of the agreement, always Azul has said several times that they are The government is also looking
seeking better services and conditions for fans of consolidation. He commented, “We at offering incentives to regional and
the Brazilian consumer,” Costa Filho said have made no secret of this in the last five international airlines to increase services
on social media. years, and we will see what happens as from all international airports in Brazil.
things go forward.” This would be good news for the duty free
Brazilian airlines have been business if traffic were to increase further.
struggling to stabilize their businesses JG

Air traffic at ASUR-run
airports in Colombia Tocumen could reach more than 19 million
grows by double digits passengers in 2024

ASUR reports that total air passenger Panama City’s Tocumen the growth of the traffic numbers at
traffic reached 1.279 million in April in International Airport will handle more the airport. He also pointed out that
the six airports that it runs in Colombia, than 19 million passengers in 2024, the project to build a third runway is
increasing year-on-year by 17.9%. Growth exceeding the 17.8 million reported last far advanced with final studies being
was driven by increases of 25.3% in year, said Raffoul Arab, General Manager prepared and that it could be put out to
international traffic and 16.2% in domestic of the major international gateway for the tender as early as next year.
traffic. Republic of Panama. In financial terms, The 19 million passenger target is
ASUR operates the airports in this number of travelers means that the excellent news for all parties, especially
Rionegro, Medellin, Monteria, Carepa, airport will exceed the $270 million in as the airport suffered flight disruptions
Quibdo and Corozal. All handle domestic total revenues achieved in 2023. in the first two months of the year when
traffic only, except for Rionegro, which Looking to the future, Arab stressed the airport’s biggest airline, Copa, had
reports that international traffic in April the importance of maintaining the to cancel flights due to the Boeing 737
was up by 25.3% over April 2023. terminal expansion program in order to maintenance problems.
For full year 2023, ASUR reports meet the growing demand from travelers The record numbers will also be
that passenger traffic in Colombia had in the Americas and further afield. welcome news for airport duty free
been negatively affected by the suspension According to Arab, the team efforts concession holders Duty Free Americas
of operations of two local airlines at the to get Terminal 2 fully operational and Motta Internacional and their
beginning of the year, which resulted in since mid-2022 and the metro link to suppliers.
a 14.2% decline in domestic traffic while the city center have been keys to ensure JG
international traffic increased 4.0% year-
on-year.

21 June 2024 ASUTIL Special Issue