Azul and TRIP agree to merge
May 28, 2012Azul chairman David Neeleman has signed an investment agreement with TRIP’s chairman Renan Chieppe and CEO Jose Mario Caprioli which will result in the merger of the two airlines.
A new parent company, Azul Trip SA, has been created to oversee the integration of the two companies, with Neeleman as chairman. To integrate both companies, an Integration Committee was created and will be presided over by Caprioli.
If approved, the merger creates a strong third place player that will continue to grow as well as compete vigorously in the Brazilian airline market, the new company representing 15% of the domestic market in terms of revenue passenger kilometres (RPKs). The combined fleet of 112 aircraft – 62 Embraer E-Jets and 50 ATR turboprops – currently operates 837 daily flights (constituting no less than 29% of the domestic total daily departures) across 316 routes, serving 96 Brazilian cities. Total combined number of employees is 8,700.
“Trip is a remarkable company, whose vigorous growth in recent years has made it the largest regional airline in South America. We are very happy to have José Mario Caprioli, Renan Chieppe and Decio Chieppe join the Board of Directors of our new parent company, Azul Trip SA. In addition to a common Embraer and ATR fleet, Azul and Trip share common values and mission, including the a genuine desire to delight our customers. Together we will work together to make air travel more accessible and more enjoyable for our customers,” declared Neeleman.
“We see in Azul a partner that shares the same values as well as a complementary business model,” remarked Caprioli. “Azul is a well-run company with a great brand that has grown quickly and responsibly while remaining focused on safety and providing quality service.”
Both Trip and Azul, as well as their respective rapidly growing cargo divisions, will continue operating independently, including their fleets, employee groups, and respective brands until the deal is fully approved by the Brazilian regulatory authorities.