Azul’s Focused International Expansion
Azul has taken advantage of its robust network and strong hubs to start servicing select international destinations
between 144 and 220 seats. As a result, the average trip cost for our fleet as of December 31, 2016 was 31 per cent lower than that of larger Boeing 737-800 jets flown by Gol. We also operate Airbus A330s to serve international markets.”
FOCUSED ON TRIP-COST ADVANTAGE
Azul is focused on maintaining a trip-cost advantage relative to its main competitors while also providing it with flexibility for growth into new markets both domestically and internationally. Azul expects to add up to 58 new next-generation Airbus 320neos between 2017 and 2023 and 33 next-generation E-195 E2 aircraft starting in 2019 to replace older generation aircraft and serve high-density markets. These new generation aircraft are more fuelefficient than older generation aircraft. Azul expects that the fleet plan will allow it to maintain market-leading trip-costs and reduce CASK, both in absolute terms and relative to main competitors.
Azul intends to continue identifying, entering into and rapidly achieving leading market presence in new markets or underserved markets with high growth potential. It also intends to continue to grow by adding new destinations to its network, further connecting cities that are already served with new nonstop service, increasing frequency in existing markets and using larger aircraft in markets that Azul has developed over the years. Finally, Azul intends to apply disciplined approach of selecting new destinations that can be served by ATR or Embraer aircraft, with a continued focus on Brazilian cities where there is the greatest opportunity for profitable growth and on select destinations in South America with perceived high growth potential. ATR aircraft provide a significant strategic advantage in the ability to enter new cities and access previously untapped demand, since these aircraft only have 70 seats and, therefore, require fewer passengers for the flight to become profitable.