Azul selects A320neo Family to redefine market strategy

Allowing capacity growth in major markets

In a recent press release, Azul founder and CEO David Neeleman outlined the next stage of the Brazilian carrier’s growth plans. After already committing to seven A330-200s and five A350-900s to commence long-haul international routes, the focus of this latest announcement was to detail their domestic and regional strategy.

From 2016 onward, Azul will receive 63 fuel-saving A320neo family of which, 35 will be purchased directly from Airbus, while the remaining aircraft will be acquired on long-term leases. These aircraft will be equipped with a dual economy and economy plus configuration, and will be powered by CFM Leap-X engines.

The A320neo will bring three unique benefits to Azul. First, they will increase capacity and improve the on-board product offered on routes between major city pairs. Second, the aircraft will allow Azul to maximize their potential in the crucial Santos Dumont market of Rio de Janeiro. Finally, the new fleet will provide the right performance and economics to develop a regional network across neighbouring countries.

When asked about their plans, Azul says the A320neo gives them a cost per seat advantage against its competitors, the very best cabin experience for its passengers and the range to grow all over South America. Azul also worked closely with Airbus to develop a solution that allows these aircraft to operate in Santos Dumont.

So, how does this latest move fit in with their overall strategy? Azul’s initial growth came from connecting secondary and tertiary cities using small regional aircraft – often as the only airline in the marketplace. While this approach has served them remarkably well so far, as Azul starts a new chapter, there will be a point in time when most regional cities will be connected and capacity growth on major routes will be required to develop the network further. This will be especially true when competing domestically with large established airlines.

The A320neo will allow Azul to harness all this regional traffic and connect it via their hubs onwards to major cities across Brazil. Larger capacities do this more economically, and boost revenues by reducing passenger spill. The A320neo will also allow Azul to bring greater traffic into their hubs, which in turn can either be distilled across a highly developed regional network, or perhaps more importantly, they can consolidate them into the new long-haul international routes to the United States.

For more information contact:
David Forrester
Marketing Manager, Airbus Latin America & Caribbean
david.forrester@airbus.com