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Azul and Delta intensify competition in the Florida-Brazil market to solidify their long term goals

Analysis

Travel options between the US and Brazil are expanding in late 2015 when Delta introduces new service to Sao Paulo Guarulhos from Orlando and Azul expands its US offerings with new flights from Belo Horizonte to Orlando and between Guarulhos and Orlando.

It is an interesting move for Delta, which presently only serves markets in Brazil from its hubs in Atlanta, Detroit and New York JFK. The airline appears to be working to bolster its position in the US-Brazil market as Azul plans more expansion. Delta is leveraging the extensive network of its Brazilian partner Gol with the new service from Orlando.

Azul on many occasions has cited favourable results on its new flights to Florida that began in late 2014, and has stated that it intends to push back the launch of service to New York due to a solid performance on routes to Orlando and Fort Lauderdale.

The expansion by both airlines is against a backdrop of weak economic conditions in Brazil, but each company is looking to build a foundation to capitalise on opportunities in Brazil once the country's economy starts to rebound.

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