After the presentation, of the Reorganization Plan and the information that it reached an agreement with a group of creditors, LATAM buried the possibility of its purchase by Azul.
John Rodgerson, CEO of Azul, remarked on the failure of the agreement between the companies, shortly after LATAM presented its Reorganization Plan.
LATAM Group CEO Roberto Alvo’s statement prevailed, who had already said that Azul’s proposal was ‘insufficient and incomplete’, as reported yesterday. Since then, it has become clear what was already expected: the deal was not closed for price reasons.
This, as reported by our partner media in Brazi Aeroin, was confirmed by Azul, as John stated in an interview with Brazilian media Estadão that it was too expensive to buy LATAM under the current terms and conditions.
«If the world spins and we have an opportunity, we will look at it. But, under these conditions, we would not make (a new proposal). It was too expensive and the core business of the company has not changed. The salary costs, for example, are still the same,» said Azul’s CEO.
LATAM, historically, has the highest salaries for flight crews, and that, from the beginning, would have been a headache for Azul, which went through a similar situation at the time of the purchase of TRIP, which had higher salaries for its employees and then being forced to increase the salary of its crew to match that of the acquired company.
So, nothing changes under the sun in terms of competition and both continue to fight individually for their piece of cake.
