SAO PAULO--Brazil civil aviation regulator Anac Wednesday
approved the takeover of Trip Linhas Aereas by rival airline Azul
Linhas Aereas Brasileiras, clearing one more hurdle in the
consolidation of the country's third-biggest airline.
Azul and Trip announced earlier this year their plans to merge,
creating an airline with a 16% market share. The companies have
started the gradual shift to the unified brand, but because the
deal still is awaiting antitrust approval the companies aren't
carrying out a full integration as the steps would have to be
reversed if the merger weren't to be given the go-ahead.
Anac on Wednesday cleared the way for Azul to take control of
Trip but said the two companies should continue operating
separately until they receive antitrust approval.
Azul and Trip announced in May that they planned to merge so as
to better compete with bigger rivals Gol Linhas Aereas Inteligentes
SA (GOLL4.BR, GOL), which recently took over regional carrier
WebJet, and Tam SA, which in June finalized its merger with Chile's
LAN to form Latam Airlines Group SA (LAN.SN, LFL).
Write to Paulo Winterstein at paulo.winterstein@dowjones.com