Tag Archives: Azul Linhas Aéreas Brasileiras S. A.

Azul signs non-binding agreement to acquire select assets of Avianca Brasil

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.

First Airbus A320neo, delivered on October 11, 2016

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?

Route Map:

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Correios (Brazil’s Postal Service) and Azul to operate Boeing 737-400F freighters

Azul Brazilian Airlines and Correios (Brazil’s Postal Service) in December 2017 signed a memorandum of understanding (MOU) for the creation of a private integrated logistics solutions company with a new business model, to contribute significantly to Brazil’s growth.

The new company will have a 50.01% ownership stake of Azul and 49.99% of Correios, and will offer integrated logistics services for cargo transportation, willing to become the best logistics platform for e-commerce in the country.

With the existing demand already served by Azul and Correios, the new company will handle roughly 100 thousand tons of cargo per year. Both companies will have cost savings, operating efficiency and revenue gains, improving the service offer to the consumer.

The memorandum of understanding will be submitted to the Brazilian authorities and appropriate government bodies for approval. Only after their consent, the new company will be established and its activities are expected to begin in the first half of 2018.

The entity is expected to operate Boeing 737-400F freighters. It is now recruiting pilots.

Azul launches a new route from Belo Horizonte to Orlando

Azul's 2015 "Azul Viagens" special livery

Azul Brazilian Airlines, Brazil’s largest airline by cities served, yesterday (November 16) added a new daily flight from Orlando International to Belo Horizonte, Brazil, the first-ever nonstop flight on the route. Belo Horizonte is Azul’s second hub destination, where Orlando travelers will be able to connect to more than 100 destinations. The company also operates daily flights from Fort Lauderdale/Hollywood and Orlando to São Paulo. Azul Cargo services are available in all international flights.

The new daily service will depart Orlando (MCO) at 6 pm (1800), arriving in Belo Horizonte at 5:32 am (0532) the following morning. The return flight will depart Belo Horizonte at 10:18 am (1018), arriving at MCO at 4:15 pm (1615).

Copyright Photo: Andy Cripps/AirlinersGallery.com. Airbus A330-243 PR-AIU (msn 494) in the special Azul Viagens livery departs from Fort Lauderdale-Hollywood International Airport (FLL).

Azul aircraft slide show: AG Airline Slide Show

AG Prints-6 Sizes and 4 Finishes

United Airlines and Azul announce a strategic partnership, United to acquire 5% of Azul’s stock

United Airlines (Chicago) and Azul Linhas Aereas Brasileiras (Azul Brazilian Airlines) (Sao Paulo) today (June 26) announced a new strategic partnership in which United will acquire an approximate 5 percent stake in Azul, Brazil’s third-largest airline, paving the way for the carriers to cooperate on a range of customer benefits including codesharing of flights (subject to government approval), expanded connection opportunities on routes between the United States and Brazil, in addition to other points in North and South America, and joint loyalty-program participation.

Through a wholly owned subsidiary, United will invest $100 million for its economic stake in Azul, which includes one seat on Azul’s board of directors.

As a result of the partnership, United and Azul will expand their frequent flyer loyalty agreement.

United-Azul announcement (RDC)(LRW)

Copyright Photo Above: Rodrigo Cozzato/AirlinersGallery.com. The announcement ceremony in Sao Paulo today.

United began serving Brazil in 1992, with flights to both Rio de Janeiro and Sao Paulo. The airline currently operates five daily flights to Brazil from its Chicago (O’Hare), Houston (Bush Intercontinental)Newark and Washington (Dulles) hubs.

Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. United Airlines’ Boeing 777-222 ER N229UA (msn 30557) climbs away from Los Angeles International Airport.

United Airlines aircraft slide show: AG Airline Slide Show

Azul aircraft slide show: AG Airline Slide Show

Bottom Copyright Photo: Marcelo F. De Biasi/AirlinersGallery.com. ATR 727-202 PR-AZS (msn 523) arrives at the Viracopos International Airport (Campinas) base serving the Campinas area near Sao Paulo.

 

Why is David Neeleman buying a controlling share of problem-plagued TAP Portugal?

David Neeleman, the airline entrepreneur who was involved with running Morris Air (Salt Lake City) with June Morris before he founded NewAir (later JetBlue Airways) (New York) and later Azul Brazilian Airlines (Sao Paulo), has struck out again with a new airline venture. This time he is not creating something new but buying into something old.

TAP Portugal logo-1

 

Neeleman lead an investment group which has been selected by the state of Portugal to acquire their controlling share in troubled flag carrier TAP Portugal (Lisbon) for €348 million ($391 million), outbidding investor German Efromovich. Besides running Azul, he will now be running trouble-plagued TAP Portugal. His group will control 61 percent of the stock of TAP Portugal. Neeleman’s group will upgrade the carrier with new aircraft (probably new Embraers for the European routes).

TAP Portugal is also likely to receive a new makeover with the new ownership group, possibly with a new blue theme.

Read the full report from Bloomberg Businessweek: CLICK HERE

Portugal is the mother country of Brazil. The ties are strong. Both countries speak the same language and the traffic patterns are strong between Brazil and Portugal. The Azul-TAP alliance will now compete against TAM and the LATAM Airlines Group which wants to increase the number of flights between Brazil and Europe. The battle lines are being drawn in Brazil.

For Neeleman, his Brazilian roots are deep. According to Wikipedia, Neeleman was born in São Paulo, Brazil, but raised in Miami. He lived in Brazil until he was five. He later attended Brighton High School in Cottonwood Heights, Utah, and attended the University of Utah for three years before dropping out. He served on a religious mission for The Church of Jesus Christ of Latter-day Saints (The Mormons) in the Northeast Region of Brazil.

JetBlue logo-2

 

After starting JetBlue Airways, CEO David Neeleman on May 10, 2007 was forced out and replaced by David Barger.

Neeleman headed south, back to his original roots. On March 27, 2008 Neeleman officially announced plans to launch a new airline, Azul (Portuguese for “blue”). Azul is now Brazil’s third largest airline and it is expanding internationally.

Azul logo

Also according to Wikipedia, Neeleman lives with his family in New Canaan, Connecticut, United States. He is the father of nine children. In 2000, he disclosed to CNBC that he has adult attention-deficit disorder (see the video above).

When Azul expanded to the United States it picked two cities that are big on the JetBlue Airways route map – Fort Lauderdale/Hollywood and Orlando, Florida. The ties between Azul and Neeleman’s old JetBlue Airways remain strong.

JetBlue has considered larger aircraft and longer-range routes to Latin America in the past. In essence, Azul is now filling this void (at least to Brazil) with its newly-acquired Airbus A330s.

It is very likely that Neeleman has much bigger plans in mind. The synergy between Brazil (and Latin America), North America and Europe are strong. For Neeleman, he now has the European piece in place once he solves the problems plaguing the flag carrier of Portugal. He also has remaining ties to the North American airline he founded – JetBlue Airways. Are the three the future base of a much larger airline alliance?

For JetBlue, their strategy is to make airline friends with any international carrier that has the potential of code sharing at their point of entry into the United States. They have successfully carved out a niche feeding international airlines especially at New York (JFK), Orlando and Fort Lauderdale/Hollywood. This strategy has recently put them at odds with the “Big Three” (American, Delta and United) over the on-going Open Skies dispute with the “Gulf Big Three” (Emirates, Etihad and Qatar). Due to their stance, their ties with the Gulf Big Three are likely to expand. Will Qatar Airways leave the oneworld alliance for JetBlue?

There is a lot of potential for a future Azul-TAP Portugal-JetBlue alliance although JetBlue is unlikely to do anything that would upset any relationship it has.

For David Neeleman, this is only the beginning.

Video: GE Capital. David Neeleman on Leadership and Innovation.

 

 

Azul and Ayrton Senna Institute team up to pay tribute to Ayrton Senna with a new logo jet

Azul ERJ 195 PR-AYU (14-Instituto Ayrton Senna)(Nose) Porto Alegre (GFB)(LRW)

Azul Brazilian Airlines (Azul Linhas Aereas Brasileiras) (Sao Paulo-Viracopas) in partnership with IAS (Instituto Ayrton Senna) pays his tribute to the 20 years of the immortal legacy of Ayrton Senna with a new logo jet.

Azul ERJ 195 PR-AYU (14-Instituto Ayrton Senna)(Grd) Porto Alegre (GFB)(LRW)

April 29 marked the launch event of the partnership between the Ayrton Senna Institute and Azul in Porto Alegre.

Ayrton Senna da Silva (1960 – 1994) was a Brazilian racing driver who won three Formula One world championships according to Wikipedia. He was killed in an accident while leading the 1994 San Marino Grand Prix. He was among the most dominant and successful Formula One drivers of the modern era and is considered one of the greatest drivers in the history of the sport.

IAS – Ayrton Senna Institute is a non-profit organization set up in 1994 to promote and enhance education throughout Brazil. Every year, they change the lives of around 2 million poor, undereducated Brazilian children, by offering recurrent training by 75,000 professors all around the country.

Azul has started a partnership with IAS after donating to the institute 1 million points on the Azul FFP – Tudo Azul mileage program.

Therefore, travelling all around Brazil (Azul currently serves over 100 domestic destinations) will become a reality to IAS and its business partners.

The painting of the pictured Embraer 195, registration PR-AYU (msn 19000434) coincides with the 20-year anniversary of Ayrton Senna’s tragic death in Italy. His legacy lives on with partnerships like this.

Copyright Photos: Gianfranco Beting/Azul.

Azul Slide Show: CLICK HERE

Azul ERJ 195 PR-AYU (14-Instituto Ayrton Senna)(Grd + Crew) Porto Alegre (GFB)(LRW)

David Neeleman to bring Azul to the United States with Airbus A330-200s and new A350-900s

Azul A330-200 and A350-900 (Azul)(LR)

Azul Linhas Aéreas Brasileiras S. A. (Azul Brazilian Airlines) (Sao Paulo), founded by David Neeleman of JetBlue Airways (New York) and Morris Air (Salt Lake City), is coming back to the United States (in a way).

The fast growing airline has ordered a new fleet of Airbus A330-200 and A350-900 aircraft for daily service
to and from United States gateways.

Azul expects to debut its first international flights by early 2015. The U.S. flights will be served from Azul’s brand new $1.5 billion terminal at Sao Paulo (Campinas), strategically located 50 minutes from downtown Sao Paulo.

Campinas is Brazil’s largest airline hub offering connections to 104 domestic cities. Azul’s U.S. gateways will be announced later this year.

Routes from Campinas Airport:

Azul 4.2014 Campinas Airport (Azul)(LR)

Azul will operate the new international routes with a fleet of 11 wide-body Airbus aircraft. The airline has ordered five Airbus A350-900 with deliveries beginning in early 2017. In addition, six Airbus A330-200 will be used to launch service in early 2015. The new aircraft will be leased from ILFC and will be equipped with Rolls-Royce engines. Azul’s fleet currently comprises of 80 Embraer and 56 ATR aircraft.

With less than six years of operations, Azul already has flown more than 85 million customers and changed the face of air travel in the Brazilian market since its first flight, on December 15, 2008.

The foundation of the airline was built around the Brazilian made Embraer E-jet. From that foundation, Azul has expanded to 880 daily flights, which represents one-third of Brazil’s daily departures. The airline currently operates a fleet of 136 aircraft and employs more than 10.000 people.

Azul: AG Slide Show