Azul - strong enough to go it alone
The Brazilian carrier, Azul Linhas Aéreas, has decided not to pursue a commercial agreement with Correios, Brazil’s postal service, to create an integrated logistics solutions company. The move had been approved by the country's competition authority a few months ago.
In 2018, Azul’s cargo business grew revenues by a record 57%, significantly higher than originally projected when it initiated its discussions with Correios (see ITJ 09-10/2018, Special p. 18). As a result, the company believes it is in its best interest to have the flexibility to enter other more favourable commercial agreements and to participate in future competitive bidding processes of Correios for the distribution of domestic air mail.
The end of the non-binding commercial agreement has no impact on Azul’s 2019 financial projections. (ah)