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Azul shakes up Brazil market with A330s & US routes, becoming first long-haul LCC from the Americas

Analysis

Brazi's LCC Azul is set to become the first low-cost carrier in the Americas to establish a long-haul operation. Azul was founded by David Neeleman, who also founded highly successful New York-based JetBlue. The hereto-domestic LCC has made commitments for six second-hand A330-200s and five new A350-900s. The A330s will be delivered from early 2015 and be used to launch services to the US; the A350s will be delivered from early 2017.

Widebodies and long-haul services represent a gigantic leap for Azul as the carrier now only operates Embraer regional jets and ATR turboprops. Azul has quickly expanded since launching in late 2008 and has already surpassed 100 aircraft and 100 destinations while capturing a 17% share of the world's fourth largest domestic market. But it has never operated scheduled international services.

The sudden move to long-haul services will shake up the Brazilian market, prompting a potential move from leading Brazilian LCC Gol, which operates an all-737 fleet including an unusual one-stop product to the US.

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