United Continental announces to vest $100 million in Brazil’s Azul

American David Neeleman

American David Neeleman will continue to control Azul by holding a 67 per cent stake in the company

United Continental Holdings Inc., the owner of United Airline, announced on Friday that it will invest $100 million for a 5 per cent stake in Azul Linhas Aereas Brasileiras SA. Currently, Azul is Brazil’s third-largest airline, after Gol, and TAM that holds a 17 per cent stake of the local aviation market.

The agreement will give United Continental a seat on the board of the discount carrier that serves the most destinations in the nation – 105 – and operates more than 900 daily flights. The company has carried 21 million passengers last year, and has a fleet of 145 aircraft.

American David Neeleman will continue to control Azul by holding a 67 per cent stake in the company, after the deal gets approved. Additionally, the deal paves the way for an enhanced code-sharing agreement between the Brazilian airline, and the United States airline, with subject to government endorsements, and growing connections opportunities.

David Neeleman founded Azul – a serial airline entrepreneur, who has started four low-cost carriers that begun flying in late 2008. Neeleman, was the winning bidder in the privatization of state-owned Portuguese airline TAP, after acquiring a 61 per cent share in the debt-ridden carrier earlier this month.

Azul started flying in late 2008. The third, and Neeleman’s best known, is JetBlue Airways Corp. in the U.S., which started flying in 2000. JetBlue forced out Neeleman in 2007, and the executive, who has U.S., and Brazilian citizenship, traveled south. He began Azul on a similar platform: generous legroom, complimentary refreshments and snacks, in-flight entertainment, and low fares.

Azul that has its main base in Campinas, around 50 minutes from downtown Sao Paulo, got a support in 2012 when it acquired another Brazilian discounter, Trip. Azul additionally operates at least 50 daily flights from Sao Paulo’s Guarulhos International Airport, an airport terminal United serves from the U.S. On Friday, Neeleman at a news conference in Sao Paulo said that this would be useful for their customers.

With this association, they’ll have the ability to go from Santos Dumont Airport (in Rio de Janeiro), or from Porto Alegre to Las Vegas, for instance; but he declined to say, how Azul will make use of the proceeds.

United Continental Vice President Jim Compton said at a press conference that Brazil is a significant market in the United’s global route network, and this alliance with Azul further strengthens their ties to the region.

Carrie Ann
Carrie Ann is Editor-in-Chief at Industry Leaders Magazine, based in Las Vegas. Carrie covers technology, trends, marketing, brands, productivity, and leadership. When she isn’t writing she prefers reading. She loves reading books and articles on business, economics, corporate law, luxury products, artificial intelligence, and latest technology. She’s keen on political discussions and shares an undying passion for gadgets. Follow Carrie Ann on Twitter, Facebook

Recent Posts

Elon Musk’s Starlink satellite internet set to cover the globe soon

Elon Musk’s Starlink satellite internet set to cover the globe soon

Starlink, the satellite internet unit of Elon Musk’s SpaceX, will most likely be able to provide global coverage by September, according to the company’s president Gwynne S
16 hours ago
At the next Krispy Kreme IPO, the donut maker aims to raise nearly $4 billion

At the next Krispy Kreme IPO, the donut maker aims to raise nearly $4 billion

Krispy Kreme, the popular donut chain, aims raise roughly $4 billion as it makes one of the biggest IPO debuts at the NYSE.
17 hours ago
Panasonic hopes Blue Yonder acquisition will improve its software woes

Panasonic hopes Blue Yonder acquisition will improve its software woes

Most Japanese major companies, which at one time were leaders in consumer electronics, are struggling to find their feet in a world that has moved to digital software. Electronics
1 day ago
Ikea and Rockefeller Foundations to raise $10 billion for renewable energy projects in poor countries

Ikea and Rockefeller Foundations to raise $10 billion for renewable energy projects in poor countries

The Ikea and Rockefeller foundations are jointly launching a $10 billion fund to promote small-scale renewable power projects in developing nations. Both
3 days ago
EC initiates another probe into Google’s adtech practices

EC initiates another probe into Google’s adtech practices

EU antitrust regulators are planning a formal investigation into Google’s digital advertising practices by the end of this year. Google is already facing unprecedented regulatory
3 days ago
Some Microsoft employees stayed at data centers during Pandemic to keep all systems going

Some Microsoft employees stayed at data centers during Pandemic to keep all systems going

The Covid-19 pandemic ravaging the world for more than a year has forced companies and organizations to find viable solutions to keep the business going. Most found a solution in w
4 days ago