Category Archives: Azul

Azul defers 59 Embraer E2 aircraft deliveries

Azul S.A. has announced that it reached an agreement with Embraer to defer 59 E2s deliveries, expected to take place between 2020 and 2023, to 2024 and beyond. These aircraft have a list price of R$24.5 billion.

Azul has acted very swiftly in adapting its business to the COVID-19 crisis. It adjusted its capacity to the new demand environment by reducing it by 90% in the month of April compared to 2019. It also made headcount and salary changes which allowed the Company to reduce payroll costs by over 50% compared to the similar period last year.

“Azul entered this crisis as one of the most profitable airlines in the world. The impact of the pandemic on the Brazilian and global economy has been unprecedented, and the timing of the recovery still remains uncertain. With the contribution of all of our stakeholders, we believe we will be able to come out of this crisis as an even stronger company. The agreement reached with Embraer to defer aircraft deliveries to 2024 is one important component of our comprehensive plan that allows us to create the liquidity runway for this crisis. With this support, we are able to ensure that we have the liquidity and the resources required to optimize the airline for the future,” said John Rodgerson, Azul’s CEO.

The Company continues to work with its partners on its fleet optimization plan and will keep the market informed of further developments.

Azul aircraft photo gallery:

Azul will cut capacity up to 50%

Azul S.A., has announced that in response to the economic impact following the outbreak of COVID-19 in Brazil, the company is taking additional steps to preserve its financial position.

“While our top priority remains the health and safety of our crewmembers and customers, we continue to focus on adjusting capacity to demand and preserving our cash position during this challenging time. We ended 2019 as one of the most profitable airlines in the world. Our strong liquidity position, combined with the expertise and dedication of our team give me confidence that we will come out of this crisis a lot stronger as an airline”, said John Rodgerson, CEO of Azul.

Capacity Adjustments

We are reducing consolidated capacity by 20%-25% in March and by 35% to 50% in April and beyond until the situation normalizes. As of March 16th, all international flights, except flights leaving from Campinas, will be suspended.

The company will continue to monitor demand trends on a daily basis adjusting capacity and its network as needed and will keep the market updated on further developments.

Fixed costs reduction

In addition to flight cancelations, Azul is taking several measures to reduce its fixed costs, which represent approximately 40% of total operating cost.

  •   Executive management team salary cut of 25% until situation normalizes.
  •   Hiring freeze.
  •   Payment deferral of 2019 profit sharing.
  •   Voluntary unpaid leave program with over 600 requests approved so far.
  •   Suspension of travel and discretionary spending.
  •   Grounding aircraft.
  •   Suspending all new aircraft deliveries.

    Balance sheet and cash flow

    Azul ended 2019 with R$2.8 billion in liquid assets, including cash and cash equivalents and accounts receivables. As of December 31, 2019, the company had no restricted cash and also held deposits and maintenance reserves totaling R$1.7 billion, and long-term investments totaling R$1.4 billion.

    The company is preemptively negotiating new payment terms with its partners. In addition, the company is closing new line of credits with financial institutions to further strengthen its cash cushion.

Azul aircraft photo gallery:

Azul updates its five-year fleet plan

Azul S.A., the largest airline in Brazil by number cities served and flight departures, announces today its updated fleet plan. This updated forecast reflects an acceleration of the Company’s fleet transformation strategy, resulting in 100% of Azul’s domestic jet capacity coming from next-generation aircraft by 2022. As a result, Azul will have one of the most fuel-efficient, profitable and environmentally-friendly fleets in the world.

According to John Rodgerson, CEO of Azul, “we ended 2019 with 42 next-generation aircraft and could not be more excited about the economics as well as the high-quality onboard experience they offer to our customers. The A320neos and E2s are the principal pillars in our goal to significantly increase revenue and earnings while we grow responsibly over the next five years.”

This fleet plan represents the expected number of each aircraft type we plan to operate over the next five years.  Azul has the flexibility to reduce or increase these numbers depending on market conditions.

Azul aircraft photo gallery:

New York is Azul’s newest international destination

Azul has made this announcement:

The statue of Liberty, Times Square and Central Park are now closer than ever for Azul customers with new daily service to JFK starting June 15, 2020.

New York will be Azul’s 3rd destination in the United States.  Azul already serves Fort Lauderdale/Hollywood and Orlando from Sao Paulo-Viracopos, Belo Horizonte and Recife.  With this new nonstop service, Azul’s portfolio of service to the US will increase to 30 weekly flights.  Sao Paulo-Viracopos, Azul’s primary hub in Brazil with this latest addition will now feature 60 nonstop destinations, 6 of those international: Fort Lauderdale, Orlando and JFK in the US, Lisbon and Porto in Portugal and finally Buenos Aires in Argentina.

This route will be served by Azul’s Airbus A330 widebody aircraft.

The flight will operate out of the international terminal at Sao Paulo-Viracopos airport and at JFK will operate out of Jetblue’s Terminal T5.  Flights are timed to provide fast and convenient connections important destinations Boston in the US and Rio de Janeiro in Brazil.

The table below shows the scheduled departure and arrival times (all times local):

Origin

Dep

Destination

Arrival

Frequency

Sao Paulo – VCP

20:30

New York (JFK)

05:30

Daily

New York (JFK)

23:30

Sao Paulo – VCP

10:30

Daily

Azul aircraft photo gallery:

Azul begins operating flights from Belo Horizonte to Fort Lauderdale/Hollywood

 

Belo Horizonte has a new international destination. Starting today, December 16, there will be direct flights from Minas Gerais three times a week to Fort Lauderdale/Hollywood in the United States. These flights on the Airbus A330, with capacity for up to 272 passengers, will last an average of eight and one-half hours.

With a full plane, the first flight out of the capital city to Fort Lauderdale/Hollywood took off right after 1:00 p.m. Prior to that, representatives from the government, the Belo Horizonte Airport, and Azul made speeches in the international departures area, celebrating the start of operations from Belo Horizonte to yet another international destination. Azul now serves both Fort Lauderdale and Orlando, expanding the frequency of its flights between Minas Gerais and the US to six flights per week.

As Azul’s second-largest hub in Brazil, with the new connection Belo Horizonte now has a daily average of 90 connections to 38 destinations, three of which are international: Orlando and Fort Lauderdale in the United States, and Buenos Aires in Argentina. Jason Ward, Vice President of Azul’s People and Clients Division, highlighted the stronger profile of the company in the capital city, and reinforced the importance of Belo Horizonte in the company’s domestic and international network.

Cities in the interior of Minas Gerais, especially Ipatinga, Uberlândia, Montes Claros and Uberaba, as well as Rio de Janeiro (Santos Dumont and Galeão), Brasília, Goiânia, Salvador and Vitória, will be the main Brazilian cities with convenient connections to the new Belo HorizonteFort Lauderdaleflight. In less than nine hours, clients from these regions can take off from Belo Horizonte and land in North America. Additionally, in Fort Lauderdale, Azul, in partnership with United and JetBlue, will offer connections to destinations operated by its partner companies.

Schedule:

Belo Horizonte-Fort Lauderdale

Origin

Departure

Destination

Arrival

Frequency

Belo Horizonte

1:30 p.m.

Fort Lauderdale

8:00 p.m.

Mondays, Wednesdays and Fridays

Fort Lauderdale

10:00 p.m.

Belo Horizonte

8:30 a.m.

Mondays, Wednesdays and Fridays

Azul aircraft photo gallery:

Alitalia signs code share agreement with Azul Brazilian Airlines

Alitalia has signed a codeshare agreement with Azul Brazilian Airlines, the largest airline in Brazil by number of cities served.

As part of this agreement, customers can conveniently connect to Azul’s unrivaled domestic network when flying Alitalia into and out of São Paulo (Guarulhos) and Rio de Janeiro (Galeão).

The benefits and convenience of a codeshare ticket include those of thru check-in and thru-baggage.

Under the agreement, the codeshared network will include 19 domestic Brazilian destinations served by Azul in connection with Alitalia services to/from São Paulo (Guarulhos) and Rio de Janeiro (Galeão):  Belém, Porto Seguro, Brasilia, Cuiabá, Belo Horizonte, Curitiba, Florianópolis, Fortaleza, Goiânia, Foz do Iguaçu, Ilhéus, Navegantes, Porto Alegre, Ribeirão Preto, Recife, Rio de Janeiro Santos Dumont, Salvador, Vitória and Campinas-Viracopos.

In other news, Alitalia will start a new route from Milan (Linate) to Hamburg starting on March 29, 2020.

Alitalia aircraft photo gallery:

Azul aircraft photo gallery:

 

Azul receives the first Airbus A321neo in Brazil

Azul S.A., the largest airline in Brazil by number of cities served and daily departures, receives today the first Airbus A321neo ever delivered in Brazil.

Configured in a 214 seat layout and powered by CFM International’s Leap-1A engines, the aircraft is the first of 13 ordered.

The airline has chosen the A321neo to fly its high-density domestic routes and will provide customers with an industry leading inflight experience, including larger overhead bins, mood-lighting and individual touch-screen inflight entertainment.

Azul takes delivery of its first Embraer 195-E2

Azul S.A., the largest airline in Brazil by number of cities served and flight departures, celebrated a historic day today (September 12) by taking delivery of its first Embraer 195-E2 aircraft.

The company is the launch customer of this latest generation aircraft, delivered in a ceremony at Embraer’s main facility in São José dos Campos. Azul will receive another five aircraft until the end of the year and has a total of 51 firm orders.

Azul’s E2s are powered by Pratt & Whitney GTF ™ engines and are expected to deliver an industry leading fuel consumption that is 25% less fuel per seat compared to the current-generation E195. The aircraft has 136 seats (18 more than the current E195-E1 and 30 more than the current E190-E1) designed in a two-by-two configuration with no middle seat. The interior configuration also features 28 extra-legroom seats with a generous 33 inch seat-pitch that is favored by corporate customers. Each slim-line seat includes the latest generation in individual seat back entertainment, soon-to-come on board Wifi, streaming live TV and individual power outlets.Photo: Embraer.

Embraer and Azul sign pool program to support new E195-E2 fleet

Embraer has announced at the 53rd International Paris Air Show the signing with Azul Linhas Aereas Brasileiras, S.A. of a long-term Flight Hour Pool Program agreement to provide repairable component support for the carrier’s brand new fleet of Embraer E195-E2 jets, the second generation of the E-Jets family.

Azul, which placed a total order of 51 E195-E2, is the global launch customer for the new aircraft and will receive the first delivery during the second half of this year.

The multiyear Flight Hour Pool Program agreement includes material services engineering and advanced component exchanges from Embraer spare parts facilities in Ft. Lauderdale, Florida, USA.

Azul joined the Embraer Pool Program in 2008, when it began operating its first generation of E-Jets, and more recently, the Repair Management Program.

With the new Flight Hour Pool Program agreement, the airline will now have coverage for its entire Embraer fleet.

Embraer’s Flight Hour Pool Program, which currently supports more than 40 airlines worldwide, is designed to allow airlines to minimize their upfront investment on high value repairable inventories and resources and to take advantage of Embraer’s technical expertise and its vast component repair service provider network. The results are significant savings on repair and inventory carrying costs, reduction in required warehousing space, and the virtual elimination of the need for resources required for repair management, while ultimately providing guaranteed performance levels.

Embraer Services & Support currently supports 100% of the E-Jets E2 delivered by offering a package of services customized for each customer and their business needs. These support programs are part of a suite of products that Embraer designed to assist the worldwide growing fleet of Embraer aircraft through TechCare.

The E195-E2 is the second of three new aircraft models that make up the E2 family of aircraft. The E190-E2 is already being operated by Norway’s Widerøe, the largest regional airline in Scandinavia, and Air Astana, a flag carrier of Kazakhstan.

Avolon delivers one Airbus A330neo to Azul

Avolon, the international aircraft leasing company, has announced the delivery of one Airbus A330neo to Azul. Avolon has 15 aircraft on lease to Azul.

This is the first Airbus A330-900 for Azul.

Photo: Avolon.