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KarelXWB
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Azul May Cut Fleet Even Futher

Tue Jun 07, 2016 1:27 pm

Azul may eliminate eight more planes as recession drags on. Air travel demand had dropped to lowest since 2012.

Quote:
Azul Linhas Aereas Brasileiras SA, Brazil’s third-largest airline by passengers, is studying another reduction to its fleet as air-travel demand shrinks to the lowest in four years.

The carrier may eliminate eight planes in addition to the 20 it’s cut since November, Chief Executive Officer Antonoaldo Neves said in an interview.

Also two of the upcoming A350s will be transferred to HNA Group.

Quote:
In addition, China’s HNA Group Co., Azul’s biggest shareholder, has agreed to take delivery of two Airbus Group SE A350 jetliners the Brazilian company had expected to receive in 2018.
Quote:
“The sector is sick,” Neves said at Azul headquarters in Barueri, Brazil.

Article
http://www.bloomberg.com/news/articl...ts-in-sick-brazil-airline-industry

[Edited 2016-06-07 06:28:23]
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reffado
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RE: Azul May Cut Fleet Even Futher

Tue Jun 07, 2016 4:41 pm

Not good.

However, I don't think they can delay delivery of their A320neos at this point, can they?

Each pair of those is said to replace 3 E-Jets, if I'm not mistaken. We might see their operation shrink considerably in the near future.
 
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KarelXWB
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RE: Azul May Cut Fleet Even Futher

Tue Jun 07, 2016 5:22 pm

Quoting reffado (Reply 1):
However, I don't think they can delay delivery of their A320neos at this point, can they?

The first two are due later this year.
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RE: Azul May Cut Fleet Even Futher

Wed Jun 08, 2016 1:30 am

Quoting reffado (Reply 1):
However, I don't think they can delay delivery of their A320neos at this point, can they?

If both Airbus and an operator are willing to play ball, then they could theoretically do a slot-swap.

Rather conceivable that they could do so with an A32x.
I myself, suspect a more prosaic motive... ~Thranduil
 
797
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RE: Azul May Cut Fleet Even Futher

Wed Jun 08, 2016 1:33 am

Quoting reffado (Reply 1):
I don't think they can delay delivery of their A320neos at this point, can they?

Each pair of those is said to replace 3 E-Jets, if I'm not mistaken. We might see their operation shrink considerably in the near future.

I spent two hours with David Neelemand and Antonoaldo two days ago.

The A320s are being delivered before the year's end. These will be deployed on routes to Northern Brazil where the E190s are struggling. These will not replace, but complement the fleet. Eight units per year will be delivered until they reach 63.

The 5 A350s they ordered are indeed being sent to their partners: 2 to TAP and 2 to HNA Group. Azul intends to keep one and it's still undecided where they'll be deployed to. The aircraft will also be delivered in November this year.

The situation in Brazil is tough. And over capacity to the US is harming every airline in the market.

797
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reffado
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RE: Azul May Cut Fleet Even Futher

Wed Jun 08, 2016 1:52 am

Quoting 797 (Reply 4):

Very interesting, thank you for sharing!

I wonder if in the future we'll see AD with A350s as they originally intended, though? Maybe get some back from TP?

It's certain however that right now at least the A359s are of much more use to TP.
 
werdywerd
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RE: Azul May Cut Fleet Even Futher

Wed Jun 08, 2016 2:48 am

Quoting KarelXWB (Thread starter):
Chief Executive Officer Antonoaldo Neves said in an interview.

Whoa - when did David Neeleman leave? Or is he in a different capacity now?
 
0newair0
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RE: Azul May Cut Fleet Even Futher

Wed Jun 08, 2016 11:14 am

Quoting werdywerd (Reply 6):
Whoa - when did David Neeleman leave? Or is he in a different capacity now?

Antonoaldo is President, not CEO (at least that's my understanding), so it's probably an error by Bloomberg.
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SCQ83
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RE: Azul May Cut Fleet Even Futher

Wed Jun 08, 2016 11:29 am

I wonder when consolidation will happen in Brazil.

Does Brazil need four carriers? (LATAM, Azul, GOL and Avianca)
 
avi8
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RE: Azul May Cut Fleet Even Futher

Wed Jun 08, 2016 12:19 pm

I think this is excellent. They are adapting to the market conditions at a very fast rate and have no problem shrinking to stay alive. That's definitely a good sign for their long term survival.

Yes, it is indeed very sad that many people will lose their jobs and that the economy as a whole is terrible; I don't mean to sound inhumane.
avi8

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jfklganyc
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RE: Azul May Cut Fleet Even Futher

Wed Jun 08, 2016 12:21 pm

Neeleman is a visionary. Beyond the vision, he has a tough time running the nuts and bolts of a day to day operation.

That was his MO at B6. He left behind a company that was growing too rapidly leading to a bleeding of cash.

Brazil's economy has been bad for a while. It has steadily gotten worse. Neeleman ordered very expensive widebodies and launched US service with this as the backdrop.

I was the first to say FLL, MCO, JFK...his mission was to land his widebodies in B6 hubs. What his intentions were, with economic conditions at the time, was anybodies guess.

Sad to see any airline shrink.

Sadly, the hard times will likely continue for Azul
 
trex8
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RE: Azul May Cut Fleet Even Futher

Wed Jun 08, 2016 12:22 pm

Quoting 797 (Reply 4):
The 5 A350s they ordered are indeed being sent to their partners: 2 to TAP and 2 to HNA Group. Azul intends to keep one and it's still undecided where they'll be deployed to. The aircraft will also be delivered in November this year.

I thought TAP was getting A330neo instead of A350s now. Why would they want 2 "orphans" unless its only temporary.
 
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reffado
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RE: Azul May Cut Fleet Even Futher

Wed Jun 08, 2016 12:26 pm

Quoting trex8 (Reply 11):

If we look at the temporary possibility, it makes sense to me.

TAP can use the A359s to upgauge existing routes and expand with their A332 fleet, until the A330neos arrive. Hasn't their problem in the long haul department long been lack of aircraft?

And by the time the A330neos arrive for TP the Brazilian economy will hopefully be better off, and AD can take delivery of their frames.

[Edited 2016-06-08 05:27:38]
 
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seahawk
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RE: Azul May Cut Fleet Even Futher

Wed Jun 08, 2016 12:34 pm

TAP could probably use a few narrowbodies too. I see a chance for connections from Faro to Germany, considering that Portugal also profits from the crisis in the typical Muslim holiday destinations around the Mediterranean sea. Southern Portugal as a destination is a bit limited by available seats on flights.
 
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reffado
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RE: Azul May Cut Fleet Even Futher

Wed Jun 08, 2016 12:49 pm

Quoting seahawk (Reply 13):

I may be completely wrong, but I think they've been working on expanding capillarity with the transfers from Azul to TAP Express (a few ATR 72s and some E-Jets).

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