Brazil’s Azul makes US$90m investment in TAP Portugal

Azul Brazilian Airlines has acquired US$90m in convertible bonds in TAP Portugal, the equivalent of 40% of the economic value of TAP Portugal. The transaction is pending approval from Portuguese civil aviation authority ANAC. In 2015, the Atlantic Gateway consortium, which is partly backed by JetBlue Airways and Azul founder David Neeleman, acquired a 61% stake in TAP from the Portuguese govt. But in February of this year the country’s govt scaled back the acquiring consortium’s share to 45%. In Nov 2015, HNA Group, the parent of Hainan Airlines, made a firm commitment to buy 23.7% stake in Azul Brazilian Airlines for $450m. Several media outlets have reported that Azul sees this $90m investment as a way to strengthen the common interests between Azul, TAP and HNA Group. <br/>