Tag Archives: Azul Linhas Aereas Brasileiras

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 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:

Azul announces a new international route to Porto, Portugal

Azul Brasil (Azul Linhas Aereas Brasileiras) Airbus A330-243 PR-AIU (msn 494) (Azul Viagens) FLL (Brian McDonough). Image: 931964.

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:

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Azul intends to open flights to up to 35 new cities in the coming years

Azul Linhas Aereas Brasileiras ATR 72-212A (ATR 72-600) PR-ATH (msn 991) VCP (Marcelo F. De Biasi). Image: 908285.

Azul has made this announcement:

The arrival of air service to a city gets the attention of local business people and entrepreneurs; it also sparks the interest of someone planning a holiday or work trip, and consequently supports and boosts the local economy. With this vision, Azul plans to expand its network by up to 35 new cities in the coming years in various regions of Brazil, as well as to select international destinations.

On March 24, the company debuted its newest destinations: Rosario and Cordoba, both in Argentina.

The list of potential new cities also includes Santa Cruz de la Sierra, Caruaru, Mossoró, Serra Talhada, Guarapuava, Toledo, Umuarama, Pato Branco, among others.

The vast majority of the markets will be served with ATR 72-600 aircraft (top), which have capacity for up to 70 passengers and are best suited for short-haul flights. The Company’s guidance for 2018 already contemplates the addition of eight to ten new destinations, representing less than 5% of the capacity growth expected for this year.

Jaguaruna, for example, a city where the company began operations at the end of 2016, has already reached the milestone of nearly 90,000 passengers flown in just over one year. The gradual growth of the base is directly related to Azul’s connectivity and to the company’s extensive network, the largest in the country, which allows passengers to travel to over 100 destinations in Brazil and abroad. Through our codeshare flights with our partners, customers can also travel anywhere in the world by connecting through the United States and Portugal.

Copyright Photo: Azul Linhas Aereas Brasileiras ATR 72-212A (ATR 72-600) PR-ATH (msn 991) VCP (Marcelo F. De Biasi). Image: 908285.

Azul aircraft slide show:

HNA Group to buy a 23.7% share of Azul for $450 million

Named "Anjo Azul" (Blue Angel)

Azul Brazilian Airlines (Sao Paulo) has issued this statement concerning an investment by the HNA Group:

Azul logo

Countering the headwinds of the current Brazilian economic crisis, Azul Brazilian Airlines announces today an important milestone that positions it as an even stronger and more competitive airline. The Chinese international conglomerate HNA Group has selected Azul as its primary strategic investment in Latin America.

In one of the largest equity investments in a Brazilian company this year, Azul received a firm commitment from HNA Group, subject to completion of certain conditions precedent, for the investment of $450 million (US) in exchange for an economic stake of 23.7%. As a result, HNA Group will be Azul’s newest shareholder and board member. With this equity raise, Azul will have one of the strongest balance sheets in Latin America.

Over the past 20 years, HNA Group has successfully transformed itself from a traditional aviation company to a global conglomerate spanning the aviation, real estate, finance, tourism, and logistics sectors, with revenues of $21 billion and over 110 thousand employees.

HNA Group has a solid experience with aircraft lessors and has recently invested in Swissport, a renowned global aviation handling company. Within its aviation group, HNA owns 14 airlines with a total fleet of 561 aircraft.

According to David Neeleman, CEO of Azul, the Chinese group saw in Azul a solid investment with high growth potential. “The investment of $450 million investment, considering Brazil’s current macroeconomic situation, demonstrates that we have a winning business model and that the HNA Group, as a large investor, has absolute confidence in Azul’s team. Moreover, this investment makes Azul the airline with the highest valuation in the Brazilian market, at US$ 1.9 billion.”

“HNA Group is committed to expanding in the airline industry through strategic investments in companies with strong market positions and excellent management teams. We are pleased to partner with Azul in order to bring more choice and convenience to our customers traveling to and from Brazil. We eagerly look forward to working with Azul founder David Neeleman and his team for the mutual benefit of both airlines,” said Adam Tan, President of HNA Group.

This investment will bring significant benefits to Azul including a stronger cash position, support for its fleet plan, product and service improvements. Moreover, the partnership between Azul and HNA Group will result in commercial agreements, joint negotiation efforts, and adjustments in aircraft allocation. Finally, it also enables the company’s entry into the Asian market.

Seabury Securities LLC, Seabury Group’s investment banking unit, served as financial advisor to Azul.

Copyright Photo: Rodrigo Cozzato/AirlinersGallery.com. Azul is smiling. Azul Brazilian Airlines (Azul Linhas Aereas Brasileiras) Embraer ERJ 190-200 IGW (ERJ 195) PR-AUB (msn 19000660) arrives at Sao Paulo (Guarulhos).

Azul aircraft slide show: AG Airline Slide Show

AG Unique holiday aviation gifts

Azul to start the Sao Paulo Guarulhos – Orlando route

Azul Linhas Aereas Brasileiras (Campinas-Viracopos) is adding another route to Orlando. The carrier will launch a new daily route connecting Sao Paulo (Guarulhos) and Orlando starting on December 15.

This is in addition to the Belo Horizonte – Orlando route due to start on November 16.

Copyright Photo: Rodrigo Cozzato/AirlinersGallery.com. Airbus A330-243 PR-AIW (msn 462) lands at Campinas-Viracopos (VCP).

Azul aircraft slide show: AG Airline Slide Show

AG A new gallery added

 

Azul arrives in Orlando

Azul arrives in Orlando (Azul)(LRW)

Azul Linhas Aereas Brasileiras (Campinas), Brazil’s largest airline by number of cities served, yesterday (December 15) inaugurated daily nonstop service to and from Orlando, its second international destination. The airline’s first arrival landed at Orlando International Airport at 5:10 pm (1710) and the first outbound flight departed or Sao Paulo (Campinas) at 7:45 pm.

From its new $1.5 billion terminal at Sao Paulo-Campinas International Airport, located 60 minutes from the city, Azul conveniently connects to popular destinations including Rio de Janeiro, Belo Horizonte, Brasilia, Salvador and Iguacu Falls.

Photos: Orlando International Airport. The inaugural flight was operated with the pictured Airbus A330-243 PR-AIZ (msn 527).

Azul aircraft slide show:

Azul A330-200 PR-AIZ (08)(Nose)(Azul)(LRW)