Ecuador authorized economic concentration of Avianca and GOL

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Ecuador authorized the economic concentration with which the airlines Avianca and GOAL will be part of the same economic group. image airgways.

the now called Open Group advances in its integration process, where an important part of this is to have the authorizations of the different control entities of the countries of the region.

Against this background, An important step has been taken in Ecuador that could be taken as a reference and sign of support for this union that will create one of the most important air groups in the continent.

Ecuador authorizes Avianca and GOL

Through the Superintendence of Control of the Power of the Market with resolution 022, the entity authorized the concentration operation in which MOBI FUNDO DE INVESTIMENTO EM AÇÕES INVESTIMENTO NO EXTERIOR (majority shareholder of GOL Linhas Aéreas Inteligentes S.A.), KINGSLAND INTERNATIONAL GROUP S.A. y KHLI S.A. (main investors of Avianca S.A.) will transfer their shares to a new Holding Company to be jointly controlled.

The transaction implies an exchange of control that will be granted to MOBI FUNDO DE INVESTIMENTO EM AÇÕES INVESTIMENTO NO EXTERIOR, KINGSLAND INTERNATIONAL GROUP S.A. y KHLI S.A. joint control over the new Holding Company, Therefore, it is configured in an economic concentration operation by complying with the provisions of article 14 from LORCPM.

East Holding, called Abra Group, will control the airlines Avianca Ecuador S.A. and GOL Linhas Aéreas Inteligentes S.A..

• GOL Linhas Aéreas Inteligentes S.A.. is a brazilian airline, whose economic activity is passenger air transport. For the provision of its services, it uses the airports of Sao Paulo in Brazil as a hub.. From 2019, the airline does not maintain operations in Ecuador.
• Avianca Ecuador S.A.. is a passenger air transport company, that provides its services on both local flights in Ecuador and international.

The 11 July 2022, the First Instance Resolution Commission of the SCPM decided to authorize the notified economic concentration operation, considering that it does not generate risks for the competitive scheme of the following geographical passenger transport markets on origin-destination routes:

• Quito – Sao Paulo.
• Quito – Rio de Janeiro.
• Guayaquil – Sao Paulo.
• Guayaquil - Rio de Janeiro.

The authorization was considered when verifying that the transaction does not generate a change in the competitive structure of the market, Therefore, it is unlikely that it affects the free concurrence of operators or acts to the detriment of competition..

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