en.Wedoany.com Reported - Brazil's Administrative Council for Economic Defense (CADE) has unconditionally approved American Airlines' $100 million acquisition of an 8.66% stake in Azul. The investment is part of Azul's financial restructuring under Chapter 11 of the U.S. Bankruptcy Code, and upon completion of the transaction, American Airlines will gain the right to appoint one member to Azul's board of directors and one representative to its strategy committee.

In its review, CADE also assessed the commercial cooperation the two parties plan to undertake, including expanded codeshare operations, reciprocal benefits in frequent flyer programs, and shared access to airport lounges. The regulator noted route overlaps between São Paulo and Rio de Janeiro, as well as with U.S. destinations such as Miami and Orlando, but determined that the two airlines are not close competitors in these markets, sufficient to raise antitrust concerns, and that passengers on the relevant routes still have other carriers to choose from.

CADE also dismissed objections raised by the Abra Group, the parent company of Gol and Avianca. Abra argued that the investment could affect American Airlines' business traffic in Brazil, thereby weakening competition. CADE assessed that Azul's domestic route network primarily complements rather than directly overlaps with Gol's operations, and found no indication that the transaction would alter the existing commercial relationship between American Airlines and Gol.

Unless the decision is appealed or referred by the CADE tribunal for further review, this approval will become final, allowing the investment to proceed.