United Azul share purchase

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By TESTCustomwebLP TESTCustomwebLP June 29, 2015 14:16

United Azul share purchase

United Airlines late last week moved for a 5% stake in Azul SA for around US$100m. Azul’s founder and chief executive, David Neeleman, announced the deal on Friday in Sao Paulo. United Continental Holdings Inc will name a representative to Azul’s board, and the two airlines have struck a codesharing agreement subject to regulatory approvals. The deal will no doubt give Azul more time to launch an IPO following the purchase of 61% in Portuguese flag carrier TAP this month as United is to make the investment in the form of a capital injection. The move by Neeleman could be very well timed given what is going on in the wider global economy at this time but the capital injection by United will dilute the stakes of existing shareholders. United hopes that this is the start of a strong relationship that “could in the future be further strengthened”, and United has already stated that Azul should join the Star Alliance.

Subject to government approval, United plans to place its code on Azul flights from São Paulo Guarulhos “to key destinations throughout Brazil,” United and Azul said in a joint statement. It will also place its code on Azul’s Airbus A330 flights from São Paulo Campinas to Fort Lauderdale, Florida. Azul will place its code on “United routes throughout North America and the Caribbean,” according to the carriers. United currently operates daily flights to Brazil from Chicago O’Hare, Houston Intercontinental, Newark and Washington Dulles.

Azul CEO David Neeleman added, “Through this partnership, Brazilians will have access to destinations in United’s worldwide route network, while US customers will be able to fly conveniently to famous destinations in Brazil such as Belo Horizonte, Iguazu Falls and the Amazon.”

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By TESTCustomwebLP TESTCustomwebLP June 29, 2015 14:16