Gol merger talks 'continue on parallel fronts': Azul president
May 15, 2025
Azul's negotiations with the parent of Gol to merge with that Brazilian carrier are ongoing, Azul president Abhi Shah has indicated. Speaking on 14 May during an earnings call, Shah said that "the discussions continue" and are taking place on "many parallel fronts, including valuation, including antitrust, documentation, all those kinds of things". Gol parent Abra Group and Azul on 15 January signed a non-binding memorandum of understanding "with the intent to explore a combination of their businesses in Brazil", Abra and Brazil-based Azul said at the time. They added: "Upon consummation of such a transaction, Gol and Azul companies would be expected to keep their independent brands and operating certificates." In January 2024, Gol filed for Chapter 11 bankruptcy protection in the USA, and has targeted June 2025 for emergence from the reorganisation process. On 9 May 2025, Gol noted that confirmation of its reorganisation plan by the Chapter 11 court is expected to occur by the end of May 2025, and that verification of the plan's effective date is expected during the first half of June 2025. It adds that these dates are tentative and subject to change. Shah said on 14 May that Abra has "always made it clear that Gol was going to exit [Chapter 11] first" before it would finalise a merger deal, adding: "that was always part of the plan". Cirium has contacted Abra Group for comment. Speaking onstage at the ISTAT Americas conference in Phoenix on 3 March, Azul founder and chairman David Neeleman noted that Azul had received "good signals" from Brazilian competition authority CADE over its proposed merger with Gol. In May, Fitch downgraded long-term foreign and local currency issuer default ratings (IDRs) for Azul, citing its "inability to effectively improve liquidity". Azul chief executive John Rodgerson stated on 14 May that the carrier had "made significant progress in reducing our debt and leverage, and we remain in ongoing discussions with our partners to optimise our capital structure and liquidity position even further".
Southwest applies for blanket open skies authority
May 14, 2025
Southwest Airlines has applied to the US Department of Transportation for authorisation to fly to all countries that the USA has an open skies bilateral air services agreement. The application, which seeks the authority for an "indefinite period", also seeks permission to fly to any country with which the USA in future forms an Open-Skies partnership, according to a copy of the application filed 13 May. Southwest notes in its application that it has "repeatedly been found fit, willing, and able to provide interstate and foreign air transportation" and currently holds a "wide range of authorities" from the DOT. It argues that approval is in the public interest because it will "promote competition and increase the traveling public's ability to access Southwest's high-quality, low-fare service". Southwest has an in service and stored fleet of 808 aircraft, split between Boeing 737 Max and 737NG jets. Southwest advised in response to a request for comment on the filing: "No news to share and not necessarily indicative of anything forthcoming. We've been an international carrier for a decade plus and with this filing we're taking advantage of the DOT's streamlined regulatory procedures for international authority." Schedules data shows that Southwest operates 53 international routes, primarily to destinations in Mexico, Central America and the Caribbean.
Boeing settles with family of deceased whistleblower
May 14, 2025
Boeing has settled a lawsuit brought by the family of John Barnett, who blew the whistle on safety and quality issues at Boeing's Charleston facility. "The court having been advised by counsel for the parties that the above action has been settled, it is ordered that this action is hereby dismissed without costs and without prejudice," states a 12 May filing to the US District Court for the Southern District of South Carolina's Charleston Division by judge Bruce Hendricks. He adds that either party may petition the court to reopen the case if the settlement is not consummated within 60 days. Details about the settlement were not provided. On 19 March, the estate of Barnett, who was found dead on 9 March 2024, filed a civil action against Boeing for "wrongful death and abuse of process". Plaintiffs Vicky Stokes, Rodney Barnett and Michael Barnett accused Boeing management of having "embarked on a concerted campaign of harassment, abuse, and intimidation intended to discourage, discredit, and humiliate [John Barnett] until he would either give up or be discredited". They further alleged that Barnett was "socially isolated and separated from his team, was moved to other areas in the plant, was blocked from transferring to more favourable shifts, and was blacklisted from other Boeing divisions". Boeing says on 13 May: "We are saddened by John Barnett's death and extend our condolences to his family. Boeing took actions several years ago to review and address the issues that Mr. Barnett raised."