Brazilian competition regulator CADE has not suspended the takeover of WebJet by its larger rival Gol, although it is "likely to study the case".
No official statement is available from CADE, but a source at the institution, which belongs to the Ministry of Justice, has told ATI and Flightglobal under condition of anonymity that media reports about the regulator suspending the takeover "are greatly exaggerated".
The source insisted that there is no legal way to take such a wide-ranging decision so quickly - Gol announced its intentions in early July 2011.
However, as the combined company would exceed a domestic market share of 50%, "it would only be logical that CADE would want to have a closer look at the process", said the source.
"CADE will let the public know when and if it opens a formal process."
The source declined to comment on any potential similarities with the proposed international TAM-LAN merger. However, the Brazilian institution has basically waved the deal through as its impact on the domestic market is limited.
Gol announced on 8 July an agreement to acquire WebJet. Declarations by its chief executive Constantino de Oliveira Jr that it would eliminate the WebJet brand almost immediately may have caused an initial reaction from CADE.
While Gol is tight-lipped about the process, it may be trying to iron out the initial problems with CADE as local media are reporting that it might not drop the WebJet brand altogether.