Reuters, SAO PAULO, May 11 – Gol Linhas Aereas Inteligentes SA (GOLL4.SA) and Avianca, a Colombian airline, announced on Wednesday that they had agreed to form Abra Group, a holding company that would combine the two brands under one umbrella.

The principle shareholders of Avianca and the majority shareholder of Gol will jointly manage Abra Group, they said, adding that both airlines will continue to operate independently and keep their unique names.

Other financial investors have promised to invest up to $350 million in Abra Group when the deal closes in the second half of 2022, they claimed.

Abra, which bills itself as a “pan-Latin American airline network,” will now possess a non-controlling 100% commercial interest in Viva’s operations in Colombia and Peru, as well as a minority stake in Chile’s Sky Airline.

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The group’s chairman will be Roberto Kriete, while the CEO will be Constantino de Oliveira Junior, the company’s founder. Co-presidents will be Avianca CEO Adrian Neuhauser and Gol Chief Financial Officer Richard Lark.

“This deal positions Abra’s airlines to lead air travel within the region, reaching a population of over 1 billion people and a GDP of roughly $3 trillion, providing tremendous capacity and revenue growth prospects,” Oliveira added.

Abra would focus on achieving synergies to decrease costs and increase routes, according to the companies, who did not provide further information.

The transaction involved Gol’s controlling shareholder, investment fund MOBI FIA, and certain Avianca Holding stockholders, including Kingsland International, Elliott International, and South Lake One, according to a second filing.

MOBI FIA will give its Gol shares to the newly established business in return for Abra common shares, according to Gol. The holding company will be a private limited company incorporated under the laws of England and Wales, according to Gol.