Abra Group receives green light to take over low-cost carrier SKY Airline

Compass Lexecon Chile provided economic advice to Abra Group and SKY Airline in relation to Abra Group’s intended takeover of the Chilean low-cost carrier. We assisted throughout the merger control review process by the competition authorities in Chile, Brazil, and Peru. After earlier approvals by the Chilean FNE and Brazilian CADE, the Peruvian Indecopi gave its Phase II conditional green light in August 2026.

Situation

Abra Group is an airline holding company, parent of Colombia’s Avianca, Brazil’s GOL, and Spain’s Wamos Air. In November 2025 it announced its intention for Chilean low-cost carrier SKY Airline to join the group, further expanding Abra Group’s presence across the Latin American aviation market. The transaction was subject to regulatory approval.

Our role

Our team advised Abra Group and SKY Airline throughout the merger control review process by the competition authorities in Chile, Brazil, and Peru. This included the provision of economic support during the filing of the transaction and merger control review, and the preparation of several independent economic reports addressing efficiencies and potential competition concerns arising from the transaction. We also participated in several meetings with the competition authorities in Chile and Peru.

Outcome

The Peruvian competition authority Indecopi approved the deal on 10 August 2026 after a Phase II review (Resolution 203-2026/CLC-INDECOPI). It required modifications to certain ancillary contractual provisions related to non-compete and employee non-solicitation clauses, but did not find competition concerns related to the concentration of the parties’ operations in any of the routes.

The Peruvian clearance followed previous regulatory approvals in Chile and Brazil. The outcome in Peru was broadly consistent with that in Chile, where the authority cleared the transaction after Phase I investigation, requiring adjustments to ancillary restraints as a mitigation measure. No remedies addressing competitive effects arising from the transaction were required.

The team

The Compass Lexecon team was led by Fernando Coloma Ríos, including Catalina Larrain, Gabriel Fernández, Francisco de la Lastra, Alejandra Valdés, Ignacio Frixone and Arturo Soto.

The team assisted external counsel to the parties across all three jurisdictions involved in the transaction. In Chile, Compass Lexecon worked with Pellegrini & Rencoret, counsel to Abra Group, led by Diego Ramos and Catalina Sierpe, and with Carey, counsel to SKY Airline, led by Lorena Pavic, Arturo Fasani, and Gonzalo Soto, who coordinated the transaction and merger control process. In Peru, Abra Group was advised by Verónica Suttler and Fiorella Monge of Estudio Rodrigo, while SKY Airline was advised by Raúl Alosilla of Stucchi Abogados. In Brazil, Abra Group was advised by Eduardo Caminati of Caminati Bueno Advogados, while SKY Airline was advised by Vivian Fraga and Joao Paulo Salviano of TozziniFreire Advogados.