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Azul starts to position as an attractive potential partner for JetBlue - and perhaps even United

Analysis

Brazilian LCC Azul is hardly catching its breath as its merger integration with smaller domestic carrier TRIP winds down. After a rapid rise to achieve 17% domesitc market share, Azul now has ambitious plans to acquire Airbus widebodies and launch international service to the US.

Azul plans to introduce flights from its largest base Campinas, near Sao Paulo, to Fort Lauderdale and Orlando in Dec-2014 followed by Campinas-JFK in Jul-2015. No formal tie-up has been announced, but those are three of JetBlue's largest bases, particularly Fort Lauderdale where JetBlue has a stated goal of reaching 150 daily departures. Azul was founded by JetBlue's creator and founder David Neeleman, so there is a significant nexus between the two airlines, even if all was not sweetness and light when Mr Neeleman parted company with the US LCC.

There are meanwhile inherent risks in Azul's decision to add long-haul international service after growing at break-neck speed domestically since startup. It also unclear how Azul is supporting the costly expansion after shelving plans for an initial public offering in 2013.

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