Avianca continues to shake up Latin America's aviation scene with creation of 'Abra'

If there were any doubts that Avianca had bold ambitions after its exit from bankruptcy, they have been put to rest.

The company has made its most enterprising move yet, after reaching an agreement with GOL to create a powerhouse Latin American aviation group: Abra.

Abra will comprise the principal shareholders of Colombia's Avianca and the controlling shareholder of Brazil's GOL. It will own a non-controlling 100% stake of Viva, and convertible debt representing a minority interest investment in Chile's Sky Airline.

Avianca and GOL aim to close the deal in the second half of this year, and if they are successful in their efforts Abra would have leading positions in Brazil and Colombia.

Now the questions are how will competitors react, and will further alliances - and even consolidation - follow.