U.S. airline’s planned investment in Brazilian carrier draws closer review after reports that United explored a possible tie-up with American.
Azul is likely to face another round of turbulence at Brazil’s antitrust watchdog, Cade, as it seeks approval for American Airlines’ investment in the carrier. In February, the agency had already cleared a separate investment by United Airlines in the Brazilian airline.
Reports that United CEO Scott Kirby had spoken with a member of the U.S. government about a possible combination with American Airlines have revived concerns that the moves by the two U.S. aviation giants in Brazil deserve a more cautious reading.
Although Bloomberg reported that the United’s CEO had discussed the issue with U.S. officials, it remains unclear whether any formal approach was made or whether a process is under way to assess such a deal, sources told the news agency. Bloomberg also said the matter was discussed with U.S. President Donald Trump during a February meeting focused on plans to modernize Washington Dulles International Airport.
Sources interviewed by Valor said that, if confirmed, such a move would be bold. A smaller deal, the proposed merger between JetBlue and Spirit, was abandoned in 2024 because of regulatory hurdles.
“What I would say is that, under normal circumstances, this kind of deal involving United and American would be impossible. But these are not normal circumstances in the United States now,”
one industry source said, referring to Trump’s influence.
Dual investment in Azul
Regardless of that, United and American agreed to invest $100 million each in Azul. The deal was struck during the Brazilian airline’s restructuring in the U.S. under Chapter 11.
American’s investment in Azul caught the market by surprise, as expectations had been that it would put money into the restructuring of its partner Gol. American held about 5% of Gol before the Brazilian airline completed its U.S. restructuring in June 2025.
The investment by the two U.S. carriers in Azul has drawn criticism from IPSConsumo, a Brazilian consumer and society research institute, largely because both American and United have stakes in Abra, the holding company that controls Gol and Avianca. Against that backdrop, the group has been calling for a closer review of the matter.
“American Airlines and United Airlines are global competitors with interests of their own, but both maintain relevant equity and strategic ties in the Brazilian market, in transactions involving Azul and Gol. As time passes, the doubts are no longer abstract and now require concrete verification by Cade. We know this is not a simple investigation,” Juliana Pereira, president of IPSConsumo, said in a statement.
Legal view
Luiz Felipe Monteiro Seixas, a consultant at law firm Bocater Advogados and a professor of competition law, said that, in principle, the reports about United’s possible move against American should not affect Cade’s review of the investments in Azul.
“That potential merger would only become relevant to Cade if it became something concrete, with some degree of formalization and clear effects in Brazil,”
he said.
In February, Cade approved United’s investment in Azul. United was already a shareholder in the company, but its stake was diluted during Azul’s restructuring, which was completed in February. Azul’s strategy was to separate the processes, and last week the company formally submitted American’s investment to Cade for review.
The expectation is that each of the two U.S. airlines will end up with roughly 8% of Azul once the process is completed, making them reference shareholders with board representation. Jeff Ogar, a senior lawyer at American Airlines, was recently nominated to Azul’s board of directors. Patrick Wayne Quayle is the executive closest to United and is already a board member.
In March, Cade’s board unanimously decided to send to its technical staff, the General Superintendence, a filing from IPSConsumo alleging early implementation, or “gun jumping,” of a concentration act involving Azul and American Airlines, with possible implications for governance and the exchange of sensitive information with United Airlines. It will now be up to the technical team to determine whether any violation occurred.
Azul, American Airlines and United were asked for comment but did not respond.
Source: Valor International
