Azul proposes JV with TAP to shareholders

Azul has proposed to shareholders a joint venture with Portuguese flag carrier TAP Air Portugal as it looks to gain a greater foothold in the transatlantic travel market, the company says in its investor update on 7 November. While the two airlines have spoken of plans for a joint venture as early as 2017, they had yet to take steps to formalise the alliance. David Neeleman, Azul’s founder and chairman, says the company is excited to bring the collaboration between the two airlines into a new phase which will benefit both the airlines as well as its passengers across the vast South American country. Since Neeleman's Atlantic Gateway consortium took a share in TAP in 2015, the Portuguese airline has undergone a dramatic restructuring, including an extensive fleet renewal and network expansion across the Atlantic. TAP is currently the leading operator of scheduled services between Europe and South America. “TAP is going through the same kind of fleet transformation as we are,” Neeleman says. “We are really excited about our investment and the strategic value of the joint venture. There will be huge synergies, we will be able to coordinate schedules and fares, but also as an investment.”<br/>