Abra Group receives conditional approval to acquire Sky Airline in Peru

Peru's antitrust regulator, Indecopi, has authorized the acquisition of Sky Airline by Abra Group, the parent company of Avianca, Gol, and Wamos. The approval comes with specific conditions to prevent undue restrictions on market competition.

During the evaluation, Indecopi analyzed the potential impact on specific routes, namely Lima-Miami and Cusco-Miami. While the regulator determined there would not be a significant restriction of competition on these routes, it identified risks regarding certain clauses in the transaction documents. Specifically, the authority flagged 'non-compete' and 'non-solicitation' provisions that could restrict competition beyond what is necessary for the deal.

To proceed, Abra Group must limit the duration and scope of these clauses so they are classified as accessory restrictions. The company is required to prove to Indecopi that these modifications have been integrated into the final transaction documents. This follows efforts by Sky Airline to stabilize its finances through various cost-cutting measures prior to joining the Abra Group.