Potential airline consolidation in Brazil: more questions than answers

There has been no shortage of smaller airlines in Latin America seizing on opportunities during the COVID-19 pandemic. But Azul's reported pursuit of LATAM Airlines Brazil is the most ambitious move yet.

After a consistent period of consolidation in Brazil during the last decade and a half, there is likely to be debate about the necessity for additional coupling among airlines, and how the country's government would view further consolidation.

And despite the fact that LATAM has apparently dismissed Azul's overtures, LATAM's restructuring in Chapter 11 bankruptcy protection adds a layer of uncertainty to the outcome, and possibly the future composition of Brazil's domestic market.