Azhul takes delivery of the first ATR72-600

Brazilian carrier Azul Linhas today took delivery of the first ATR 72-600 regional turboprop aircraft. Fast-growing carrier Azul has placed orders for a total of 30 ATR 72-600s, with options an additional 10 aircraft. Azul was founded in December 2008, and in less than three years has developed an extensive network of 40 destinations throughout Brazil. In addition to its ATR 72s, Azul operates a jet fleet of Embraer 190s and 195s. With the delivery of the aircraft today, Azul Linhas  becomes one of the first operators of the newest generation ATR aircraft. With the introduction of its new fleet of ATR 72-600s, Azul will continue to support its growing national jet network with shorter haul regional routes. With its current fleet of 8 ATR 72s, Azul serves more cities within the economically vibrant state of Sao Paulo from its Campinas base than any other carrier.

Brazil has become in recent years a booming market for ATR, whose aircraft are optimally suited for the expansion of domestic short-haul routes due to their low operating and maintenance costs, up to 45% less than its competitors. The environmental friendliness of the ATRs, which produce up to 50% less CO2 than other regional aircraft, are also among the reasons for their popularity in Brazil. Today there are 50 ATR aircraft operating in Brazil, a figure expected to more than double within the next three years.  David Neeleman, Founder and Chairman of the Board of Azul, declared: “We are delighted to introduce the new ATR -600 series in Brazil and to be among the very first operators of the newest generation turboprops in the world. In addition to offering our passengers the highest standards of comfort, we are committed to making flying more accessible to Brazilian customers in terms of both frequency and cost. This aircraft fits this mission perfectly."

Filippo Bagnato, Chief Executive Officer of ATR, declared: “With the new ATR 72-600s, the Brazilian regional passengers will have the opportunity of experiencing the new ‘Armonia cabin’, which features the most advanced technologies in terms of comfort, including larger overhead bins and thinner seats with more legroom. Brazil is a very dynamic market and we are convinced that the performance of the ATRs, coupled with the high levels of comfort proposed to passengers, will continue providing us expansion opportunities across the country and in the whole Latin America”.

Gol set to buy rival Webjet

Brazil's No. 2 airline, Gol, confirmed on Friday it plans to buy smaller rival Webjet for BRR96 million reais (USD$61.4 million), the latest consolidation in the booming Latin American airline sector. Gol Linhas Aereas will complete the transaction to buy 100 percent of Webjet through its Varig subsidiary. Webjet has been valued at BRR311 million reais, much more than the deal price. The filing did not explain why the price was less than a third of Webjet's estimated worth, or whether Gol would assume any debt as part of the deal. Gol said the deal's completion still depended on legal and technical audits of Webjet and the approval of government authorities. It said it would provide more details on July 11.

A source said earlier on Friday that lawyers representing the Constantino family -- Gol's majority shareholders -- and Webjet's biggest shareholder, Guilherme Paulus, had been finalising the terms. The takeover underscores Gol's efforts to expand capacity to meet growing demand as more Brazilians use air travel as household incomes increase. Webjet operates 154 daily flights to 14 Brazilian destinations, including the country's largest cities, while Gol operates around 900 flights per day. Webjet's Paulus sold a controlling stake in his tourism company, CVC, last year to buyout firm Carlyle Group in a deal valued at USD$300 million at the time. He refused to include Webjet because he expected better offers from other parties, people familiar with the situation said at the time.

The potential alliance comes as Gol faces increased competition from a handful of relatively new carriers in Brazil which, like Webjet, target routes largely underserved by Gol and its largest rival TAM. TAM and start-up TRIP signed a letter of intent in March to explore a potential "strategic alliance" that would complement their existing codeshare agreement. Brazil's No. 2 airline, Gol, confirmed on Friday it plans to buy smaller rival Webjet for BRR96 million reais (USD$61.4 million), the latest consolidation in the booming Latin American airline sector.

Gol Linhas Aereas will complete the transaction to buy 100 percent of Webjet through its Varig subsidiary. Webjet has been valued at BRR311 million reais, much more than the deal price. The filing did not explain why the price was less than a third of Webjet's estimated worth, or whether Gol would assume any debt as part of the deal. Gol said the deal's completion still depended on legal and technical audits of Webjet and the approval of government authorities. It said it would provide more details on July 11. A source said earlier on Friday that lawyers representing the Constantino family -- Gol's majority shareholders -- and Webjet's biggest shareholder, Guilherme Paulus, had been finalising the terms.
The takeover underscores Gol's efforts to expand capacity to meet growing demand as more Brazilians use air travel as household incomes increase.
Webjet operates 154 daily flights to 14 Brazilian destinations, including the country's largest cities, while Gol operates around 900 flights per day.
Webjet's Paulus sold a controlling stake in his tourism company, CVC, last year to buyout firm Carlyle Group in a deal valued at USD$300 million at the time. He refused to include Webjet because he expected better offers from other parties, people familiar with the situation said at the time.
The potential alliance comes as Gol faces increased competition from a handful of relatively new carriers in Brazil which, like Webjet, target routes largely underserved by Gol and its largest rival TAM.

TAM and start-up TRIP signed a letter of intent in March to explore a potential "strategic alliance" that would complement their existing codeshare agreement. Webjet is Brazil's fourth largest carrier, while TRIP is the sixth biggest.
TAM plans to merge with Chilean carrier LAN Airlines, which could create Latin America's largest airline. The deal is pending approval by Chilean authorities.
Webjet is Brazil's fourth largest carrier, while TRIP is the sixth biggest. TAM plans to merge with Chilean carrier LAN Airlines, which could create Latin America's largest airline. The deal is pending approval by Chilean authorities.