Azul S.A, the largest airline in Brazil by number of departures and destinations, has announced today that it has signed a non-binding agreement with Avianca Brasil to acquire certain assets of Avianca Brasil for the indicative purchase price of up to US$105 million.
As provided by the Brazilian Bankruptcy and Judicial Reorganization Law, the assets will be transferred to a new entity free and clear of all debts and liabilities (“NewCo”). The proposed NewCo solely includes certain assets selected by Azul including Avianca Brasil’s operating certificate, 70 pair of slots and approximately 30 Airbus A320 aircraft.
The offer is non-binding and remains subject to a number of conditions precedent, including due diligence, regulatory and creditors approvals, and the conclusion of Avianca Brazil’s judicial reorganization. Azul estimates that the process could take up to three months to be concluded.
Azul will keep the market informed of any relevant developments.
Above Copyright Photo (all others by the airlines): Avianca (Brazil) (OceanAir Linhas Aereas) Airbus A320-251N WL PR-OBD (msn 7175) GRU (Rodrigo Cozzato). Image: 938772.
Avianca Brasil aircraft slide show:
If concluded, is this the end of Avianca Brasil?
Azul, the largest airline in Brazil by number of departures and destinations, announces today a significant acceleration in its fleet transformation program.
The Company expects to add 21 next-generation aircraft this year, an increase of eight aircraft from its previous plan. These additions will be offset by the retirement of 15 Embraer E195 E1s, seven more than previously announced. Consistent with our fleet upgauging strategy, total available seat kilometers (ASKs) are expected to increase by 18% while departures should grow by only 5%.
For John Rodgerson, CEO of Azul, this acceleration is a further step in achieving Azul’s margin expansion plan. “Azul ended 2018 with a fleet of 20 A320neo aircraft, which provide significant revenue uplift to all parts of our business. The extra seats offer passengers improved connectivity throughout our network; our TudoAzul loyalty customers love the additional redemption opportunities; and our Azul Cargo business fills up the extra belly space. All of these benefits come with an impressive 29% lower seat cost than our current generation aircraft. We are equally excited about the entry of our next-generation Embraer E2, which themselves provide a 26% lower seat cost than the current airplanes.” By the end of 2019, an industry-leading 40% of Azul’s capacity is expected be flown on next-generation aircraft.
The table below provides further detail on Azul’s updated fleet plan projections for 2019:
Azul Fleet Projection
Azul offers 821 daily flights to 110 destinations. With an operating fleet of 123 aircraft and more than 11,000 crew members, Azul has a network of 220 nonstop routes as of December 31, 2018.
Top Copyright Photo: Azul Brasil (Azul Linhas Aereas Brasileiras) Airbus A320-251N WL PR-YRF (msn 7409) VCP (Rodrigo Cozzato). Image: 938768.
Azul aircraft slide show:
Azul has announced a new nonstop service to Porto, Portugal starting on June 3, 2019.
The new destination will receive three weekly flights from Sao Paulo (Campinas), Azul’s main hub, which will have a total of 17 weekly frequencies to Portugal.
The Portuguese city is the second destination in Europe to receive flights from Azul after Lisbon.
The nonstop flight will be operated on an Airbus A330, with 272 seats. With the addition of this new flight, Campinas, the largest hub in Latin America, will offer nonstop service to 57 destinations, including Orlando, Fort Lauderdale/Hollywood and Lisbon.
In partnership with Aigle Azur, Azul also offers flights to Paris, France.
Top Copyright Photo (all others by the airline): Azul Brasil (Azul Linhas Aereas Brasileiras) Airbus A330-243 PR-AIU (msn 494) (Azul Viagens) FLL (Brian McDonough). Image: 931964.
Azul aircraft slide show:
Azul and Turkish Airlines have announced the enhancement of their cooperation with a frequent flyer agreement between the two airlines’ loyalty programs. Starting today, members of Azul’s loyalty program TudoAzul and members of Turkish Airlines loyalty program Miles&Smiles will have access to exclusive benefits and the ability to earn and redeem points when flying on each airline. This new frequent flyer agreement builds upon the very successful codeshare agreement between Turkish and Azul that was implemented in December 2017. Via this codeshare agreement customers traveling on a connecting itinerary between the two airlines can enjoy a seamless travel experience and connect to over 100 destinations in Brazil.
“Azul has proven itself to be a critical connecting partner for international airlines that fly into Brazil. With an unparalleled network of over 100 domestic destinations, airlines flying into Brazil can access an unrivalled portfolio of destinations and experiences for their customers when they partner with Azul for their domestic connectivity in Brazil“, says Abhi Shah, Chief Revenue Officer at Azul.
The Director of Marketing for Turkish Airlines, Ahmet Olmustur, also celebrated this new agreement. “We are very happy to amplify our strategic partnership with Azul. This clearly demonstrates that the codeshare we put in last year is working and that our customers are asking for even closer cooperation between our two airlines”, confirmed Olmustur.
The codeshare between Azul and Turkish allows a single ticket to be flown on both airlines the convenience of thru baggage and thru check-in. In this way, customers traveling on Turkish Airlines long-haul flights into Brazil have access to over 100 domestic destinations with the Azul network. At the same time Azul customer leaving Brazil can connect to the Turkish Airlines global network via their long haul flights.
“We are delighted to expand our partnership with Azul” said Ahmet Olmuştur, Turkish Airlines’ Chief Marketing Officer, that was present at the ceremony today. “This signing shows that the codeshare agreement, we made at the end of last year with Azul, was a great success that led up to bring our existing collaboration on a higher level.”
Embraer and Azul Linhas Aéreas Brasileiras S.A. announced today, at the Farnborough AirShow 2018, a Letter of Intent (LOI) for a firm order of 21 E195-E2 jets. This contract has a value of USD 1.4 billion. The order will be added to Embraer’s order book as soon as the firm contract is completed.
This order is additional to an order for 30 E195-E2 jets signed by the airline in 2015, which will raise Azul’s total order to 51 Embraer E2 aircraft. Azul is the launch operator of the E195-E2 and will receive the first aircraft in 2019.
Azul S.A. issued this statement:
Today (April 27, 2018), Azul is announcing that current shareholder United Airlines has just concluded a private preferred share transaction with Hainan Airlines. The transaction increased United’s economic stake in Azul from 3.7% to 8.0%.
Azul and United today connect via their gateways in Sao Paulo – Guarulhos (GRU), Fort Lauderdale/Hollywood, Florida (FLL) and Orlando, Florida (MCO).
In Brazil connecting customers have access to the largest domestic network in the country, serving more than 100 cities.
Copyright Photo: Azul Brasil (Azul Linhas Aereas Brasileiras) Airbus A330-243 PR-AIV (msn 532) (Brazilian flag livery) FLL (Brian McDonough). Image: 940993.
Azul aircraft slide show:
Azul has announced the lease of two used Boeing 737-400F freighters to support the rapid growth of its cargo business unit, Azul Cargo Express. Both aircraft are expected to be delivered during the second half of this year. As a result, Azul Cargo Express will have additional capacity and greater flexibility to provide customized solutions for its growing customer base.
“We have decided to order these freighter planes because we see the need to have some dedicated narrowbody aircraft to support the growth of our cargo business. The 737 is the only narrowbody freighter option in the market and was chosen because of the model’s low ownership cost combined with its superior capacity and unbeatable reliability track record. With these planes, we’ll have greater versatility based on the needs of our clients, and we will also be able to offer new services, such as air charter. With no doubt, these cargo planes will support our fast expansion,” notes Izabel Reis, director of Azul Cargo Express.
The 737-400F can hold up to 20 tons of cargo. With more capacity and higher flexibility, Azul Cargo Express expects to grow revenues by 40% this year, expanding its service offering throughout Brazil. In 2017, Azul’s cargo business registered a 49% revenue growth compared to the previous year.