Azul’s Fo­cused In­ter­na­tional Ex­pan­sion

Azul has taken ad­van­tage of its ro­bust network and strong hubs to start ser­vic­ing se­lect in­ter­na­tional des­ti­na­tions

SP's Aviation - - CIVIL AIRLINES -

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.

Source: Azul

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