Azul could join giant Latin America alliance sought by United, Avianca, Copa
Brazilian carrier Azul may be the final piece of the South American network puzzle that United Airlines, Avianca and Copa Airlines have been looking for as they try to build a pan-Americas partnership.
Long an independent hold out, Azul has focused on building international connections via its codeshare with United in the U.S. and TAP Air Portugal in Europe. That view may have changed with executives saying Monday that the airline was in discussions with Avianca, Copa and United over a potential four-way joint venture, or "JV four," as they described it.
“It certainly is a possibility — it could not happen, it could happen," they said during Azul's annual investor day. "It depends how the conditions are on our entry into this joint venture.”
Any potential joint venture would allow the member airlines to operate as essentially one carrier in a specified market. The tie-up that's currently proposed between Avianca, Copa and United would likely cover flights between the U.S. and both Colombia and Panama. In addition, the partnership would allow them to facilitate connecting itineraries into South America — improving connectivity between North America and South America.
Avianca and United first announced plans to form a joint venture in mid-2017, with Copa Airlines confirming that it would be part of the deal a year later. The three carriers finalized an agreement last November, but have yet to seek regulatory approvals for the tie-up.
Key to Azul joining any potential joint venture will be how the partnership fits into its strategy, benefits customers, and benefits its long-haul network, executives said.
Executives at Azul did not comment on whether the airline was considering joining one of the world's alliances, despite recent overtures by Star Alliance.
Related: Star Alliance eyes Azul’s network to fill its Brazil gap
Azul's seemingly sudden acknowledgement of discussions with Avianca, Copa and United may have been prompted by the Delta Air Lines and LATAM Airlines surprise deal less than a month ago. Atlanta-based Delta wooed LATAM away from its long-time partner American Airlines and the Oneworld Alliance with plans to create a new partnership covering the Americas.
A Delta-LATAM joint venture, if approved, would create a market-leading airline entity with more than 29% of passengers between the U.S. and South America, according to U.S. Department of Transportation data via Diio for 2018. American Airlines, the largest single carrier in the market, had a 28% share during the period, while Avianca, Copa and United had a 23% share.
While no agreement has been reached, a combined Avianca, Azul, Copa and United tie up would give the combined entity a 27% share of passengers between the U.S. and South America based on 2018 numbers.
Azul is in growth mode. The airline is preparing to debut the first Embraer 195-E2 on Thursday, an aircraft that it plans to replace older, less efficient E195-E1s with in the coming years. At the same time, it is upgauging key routes to new Airbus A320neos and expanding long-haul flying to Europe and the U.S. with new Airbus A330-900s.
Related: Embraer delivers the first E195-E2, to Azul
At the same time, it is adding routes relevant to Brazilian business travelers — like a shuttle between the city airports of Rio de Janeiro Santos Dumont (SDU) and São Paulo Congonhas (CGH) — and adding key connections at São Paulo Guarulhos, the city's main international airport, to feed its codeshare partners.
“We want to really be relevant for the international connecting partners," Abhi Shah, chief revenue officer of Azul, said during the investor day presentation. "You want to be able to provide that connectivity to long-haul carriers.”
Related: Exciting New Airline Routes for September 2019 and Beyond
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
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- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
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You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
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Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.