Brazil Plans to Allocate $690 Million in Aid to Airlines by Early 2025

The Brazilian government is preparing a credit line worth 4 billion reais (approximately 690 million dollars) to assist the country’s airlines facing financial difficulties. Minister of Ports and Airports, Silvio Costa Filho, announced that this financial support should be available until early 2025. The credit line is designed to support major carriers such as Gol Linhas Aereas and Azul, which have been in discussions with the government regarding this aid.

The National Civil Aviation Fund will provide the resources for these credits, which will be issued by the state development bank BNDES. According to Costa Filho, the details of this program are expected to be finalized next week and pass through the lower house of Congress.

Gol Linhas Aereas, which is currently working to exit bankruptcy protection, reached a restructuring agreement earlier this month that will allow it to emerge from Chapter 11 next year. Meanwhile, Azul successfully renegotiated its debts and managed to raise up to 500 million dollars in fresh capital, avoiding Chapter 11 that affected other major Brazilian airlines since the onset of the coronavirus pandemic.

Costa Filho emphasized that Brazilian airlines have needed government support since the pandemic began, noting that unlike other countries, Brazil did not immediately provide assistance to its airlines.

Despite rumors of a potential merger between Gol and Azul, the minister stated that he was not aware of any concrete developments in that direction. While Azul acknowledged that discussions about a possible business combination are ongoing, Gol has made no immediate comments on the matter.