China’s HNA Group has acquired a 23.7% stake in Brazil’s Azul Airlines (Azul) through its subsidiary, Hainan Airlines, the agreement first disclosed in November last year. Aside from Azul and a pending investment US$114 million for a 13% stake in Virgin Australia, HNA Group also has a stake in Africa World Airlines, Aigle Azur, Comair and MyCargo Airlines.
Based in Haikou, China, Hainan Airlines anticipates having three seats on the board of Azul. In a statement from the company, both airlines intend to develop a global networking synergy in the areas of codesharing, development of new routes, a frequent flyer program, marketing programs and cargo.
According to HNA Group Vice Chairman and CEO, Adam Tan, “In addition to bringing more choice and convenience to Hainan Airlines’ customers traveling to and from Brazil, we view Azul as a strong and lasting partner for HNA to explore further expansion and capital investment in Latin America. We look forward to working together to create a seamless travel experience between Latin America and China and to deliver further choice, value and excellence to worldwide travelers through our future cooperation.”
Azul founder and CEO David Neeleman stated that: “This $450 million investment demonstrates that we have a winning business model and that Hainan Airlines, as a large investor, has absolute confidence in Azul’s team.”
Azul is Brazil’s third largest airline, operating more than 800 flights daily which account for a one-third share of the Brazilian air transport market in terms of daily departures to 109 destinations, mainly in Brazil, French Guiana, Portugal, the United States, and Uruguay. The airline operates a fleet of 149 aircraft, predominantly Embraer E195s and ATR 72-500/600s, but placed an order for 35 Airbus A320neo aircraft in early 2015, with the intention to also lease a further 28 of the aircraft type.
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