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Portrait of a Newcomer: Azul Airlines, Some Facts, Figures and Comparisons

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Document pages: 16 pages

Abstract: Azul Airlines is the latest case of successful entry into Brazilian domestic markets for scheduled passenger service. Born from the interest of David Neeleman, the businessman behind jetBlue and Westjet, and with initial capital in excess of US$ 200 million, this airline is presented in depth in this paper, from the first public statements regarding its foundation up to its latest developments, including some analysis on how Azul started impacting its rivals’ behaviour well before its first flight took off. The contribution of this study is twofold: first, vast amounts of elements from the history and operational characteristics of this new airline, already one and a half years-old as of July 2009, are presented and then compared with previous entries of airlines with certain degrees of similar business model – namely GOL and Webjet. Second, we benefit from an econometric analysis developed in a previous study on airline capacity setting at airport-pair level in order to preliminary map how Azul may be both affecting rival airlines and benefiting the customers. Results seem optimistic.

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