Brazil approves United Airlines’ US$100 million minority investment in Azul

CADE, the Brazilian antitrust authority has approved, without conditions, United Airlines’ acquisition of an expanded minority stake in Azul Linhas Aéreas.

The decision allows United to increase its economic interest in Azul from 2.02% to around 8% through an investment of approximately US$100 million. The transaction is linked to Azul’s restructuring under Chapter 11 of the US Bankruptcy Code, which the airline entered in May last year.

According to the companies, the restructuring targets a reduction in financed debt and the strengthening of short-term liquidity through a capital increase. The plan includes the issuance of new shares.

The capital increase will take place through two coordinated equity offerings: a court-approved public issuance of about US$650 million and a separate placement reserved for strategic partners, including United Airlines.

United has held a minority stake in Azul since 2015 and maintains codeshare and commercial cooperation agreements with the Brazilian carrier.

Azul is Brazil’s third-largest airline and operates a mixed fleet that ranges from Airbus A330 widebodies to single-engine Cessna Caravan turboprops. Its fleet also includes Airbus A320neo and A321neo narrowbodies, Embraer E195 and E195-E2 jets, and twin-engine ATR turboprops.

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Ricardo Meier

Creator of the website that started in 1996 as a magazine. He also writes on Brazilian websites AUTOO, MOTOO and MetrôCPTM.

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