Tag Archives: Azul

Azul to take delivery of a new Airbus A321neo painted in a special Disney Minnie Mouse livery

2021 "Walt Disney World - Minnie Mouse" promotional livery

Azul will soon take delivery of the pictured Airbus A321-251NX that will become PR-YJF painted in a special Walt Disney World “Minnie Mouse” livery (above).

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Top Copyright Photo: Azul Brasil (Azul Linhas Aereas Brasileiras) Airbus A321-251NX WL D-AVWX (PR-YJF) (msn 10793) (Walt Disney World – Minnie Mouse) XFW (Gerd Beilfuss). Image: 956286.

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Azul aircraft photo gallery:

Azul ends its codeshare agreement with LATAM, will pursue merger opportunities

"La Belle Azul" pink livery for breast cancer awareness

Azul issued this statement:

Azul, the largest airline in Brazil in terms of destinations and departures updates the market on its codeshare with LATAM and possible industry consolidation.

Azul believes that consolidation is an important part of the post-pandemic industry response and the Company is in a strong position to drive that consolidation.  The Company has hired advisors and is actively exploring industry consolidation opportunities in the region.

“The codeshare with LATAM was a unique solution in our pandemic response.  We also realized that industry consolidation would be important for the post-pandemic recovery and Azul would be a key part of any such activity.  At the end of the first quarter of 2021 we hired financial advisors and are actively exploring consolidation opportunities.  We believe the cancelation of the codeshare by LATAM is a reaction to that process,” says John Rodgerson, CEO of Azul.  “Azul is emerging from this crisis in a leadership position in terms of liquidity, network recovery and competitive advantages.  Our plans are unchanged and I am confident that we are in the best position to pursue strategic alternatives at this point in time,” says Rodgerson.

Azul will keep the market update of any developments.

Azul Route Map:

Top Copyright Photo: Azul Brasil (Azul Linhas Aereas Brasileiras) Airbus A330-941 F-WWYO (PR-ANV) (msn 1952) TLS (Eurospot). Image: 952080.

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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:

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.

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:

Azul accelerates its fleet transformation in 2019, will grow its Airbus A320neo fleet

Azul Brasil (Azul Linhas Aereas Brasileiras) Airbus A320-251N WL PR-YRF (msn 7409) VCP (Rodrigo Cozzato). Image: 938768.

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:

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