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Azul and GOL start selling 40 shared routes across Brazil

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Azul and GOL have initiated a codeshare agreement, starting July 11, 2024, to provide more travel options across Brazil.

This partnership includes 40 non-overlapping routes, with 20 already available on Azul's sales channels.

The companies aim to enhance connectivity and offer customers more flight and destination choices. The codeshare will create over 2,700 travel opportunities with just one connection within Brazil.

Customers can accumulate points or miles from either airline's loyalty programs when purchasing codeshare flights through the respective companies' digital channels.

Check-in and baggage procedures will follow the rules of the operating airline or the first leg of the journey.

Positive
  • Azul and GOL's codeshare agreement introduces 40 non-overlapping routes, enhancing connectivity across Brazil.
  • The partnership is expected to create over 2,700 travel opportunities with just one connection.
  • Customers can earn loyalty points or miles from either Azul's Fidelidade or GOL's Smiles programs.
Negative
  • None.

Insights

The codeshare agreement between Azul and GOL is a significant development in the Brazilian aviation market. By allowing the sale of 40 new shared routes, the collaboration enhances connectivity and provides more travel options for customers. This partnership can be seen as a strategic move to capture a larger share of the domestic market, making air travel more accessible across Brazil.

From a market perspective, this can lead to increased revenue for both airlines due to higher passenger volumes. With a combined offering of 1,500 daily departures, the expanded network can attract more travelers looking for convenient connections. Additionally, the codeshare allows customers to accrue loyalty points across both airlines' programs, potentially increasing customer retention and brand loyalty.

However, market analysts should stay cautious about how this agreement affects competition in the long term. Such alliances can lead to a reduction in competitive pressures, possibly impacting fare prices. It's essential to monitor whether this partnership leads to genuine consumer benefits without negatively affecting competitive pricing within the market.

Overall, this strategic alliance is likely to enhance the market position of both airlines, creating a more extensive and efficient network that could drive up revenues and customer satisfaction in the short to medium term.

The financial implications of the codeshare agreement between Azul and GOL appear promising. By synergizing their route networks, both airlines have the potential to optimize operational costs and improve load factors on their flights. Higher load factors typically translate to better profitability, as the fixed costs of operating flights are spread across more passengers.

Additionally, the move can generate increased revenue through ticket sales on newly available routes. This agreement potentially reduces duplicative operations and instead allows both companies to focus on maximizing route efficiency. Investors should consider the potential cost savings and revenue increases from this expanded network when evaluating the financial health of these companies.

However, it's critical to also consider the implementation costs and any potential financial risks associated with integrating reservation systems, customer service frameworks and loyalty programs. There may be short-term costs that could affect financial results in the upcoming quarters.

The Codeshare agreement, announced at the end of May, offers more travel options and convenience to Customers 

SÃO PAULO, July 11, 2024 /PRNewswire/ -- The airlines Azul and GOL reinforce this wednesday the commercial cooperation agreement that connects the networks of both companies through a codeshare agreement. Starting today, 40 non-overlapping routes will be available for sale on the companies' channels, with the addition of many more routes expected over the coming weeks. 

On Azul's sales channels, 20 itineraries operated by GOL are already available: Belém-Rio Branco, Confins-São José dos Campos, Curitiba-São José dos Campos, Juazeiro do Norte-Galeão, Pato Branco-Brasília, Recife-São José dos Campos, São Gabriel da Cachoeira-Guarulhos, Tabatinga-Brasília, Tabatinga-Guarulhos, Tefé-Brasília, Tefé-Guarulhos, Uruguaiana-Brasília, Viracopos-Boa Vista, Viracopos-Porto Velho, Viracopos-Rio Branco, as well as those already in the system Manaus-Rio Branco, Fortaleza-Galeão, Curitiba-Brasília, Manaus-Guarulhos, Manaus-Brasília, Brasília-Boa Vista, Brasília-Porto Velho, and Brasília-Rio Branco. 

By mutual agreement, the two companies decided to explore opportunities to complement their networks and develop new choices for Customers. "We are happy to offer, together with GOL, even more flight and destination options, improving the Customer experience in their travels across the country," highlights Abhi Shah, president of Azul. According to the executive, the codeshare represents exponential growth in connectivity, allowing even more people to use air transport in their travels. "The partnership between Azul and GOL is the fastest way to foster air travel within Brazil," he adds. 

Together, Azul and GOL have about 1,500 daily departures. With the start of the codeshare, more than 2,700 travel opportunities with just one connection will be created within Brazil, further facilitating access to air transport in the country. 

Conveniences for Azul and GOL Customers 
Customers will be able to search for exclusive domestic routes of either company and purchase them through the sales channels of Azul and GOL, finding a greater possibility of destinations. Routes operated by both Companies are not included in the codeshare. 

In addition to more travel options, the points or miles related to codeshare flights purchased through the digital channels of the other airline – for example, a GOL flight purchased on Azul's website – can be accumulated in either Azul's Fidelidade or Smiles, with the choice being up to the Customer. More information about this process will be detailed soon. 

Check-in must always be done through the digital channels or counters of the airline operating the flight or the first leg in the case of connecting flights, regardless of the company that sold the ticket. In the case of connecting flights, the Customer will receive all boarding passes for their trip at check-in. 

The baggage check follows the same rule as the check-in. It must be carried out with the airline operating the flight or the first leg and will be delivered to the final destination, regardless of connection with the other airline. 

Rebookings and cancellations of reservations should be handled with the company that sold the ticket. 

Additional conveniences and optional items, such as special seats and checked baggage, as well as benefits from loyalty programs and cargo transport, remain under the pre-determined rules of each company and should be observed by Customers. 

About Azul  
Azul S.A. (B3: AZUL4, NYSE: AZUL), the largest airline in Brazil in terms of departures and cities served, offers 1,000 daily flights to more than 160 destinations. With an operating fleet of more than 180 aircraft and more than 16,000 crewmembers, the company has a network of 300 direct routes. Azul was chosen by Cirium (a leading aviation data analysis company) as the 2nd most punctual airline in the world in 2023. In 2020, Azul was awarded as the best airline in the world by TripAdvisor, being the first time that a Brazilian airline won first place in the Traveller's Choice Awards. For more information visit www.voeazul.com.br/imprensa  

Cision View original content:https://www.prnewswire.com/news-releases/azul-and-gol-start-selling-40-shared-routes-across-brazil-302194934.html

SOURCE Azul

FAQ

What is the announcement by Azul and GOL on July 11, 2024?

Azul and GOL announced a codeshare agreement on July 11, 2024, offering 40 non-overlapping routes to enhance travel options across Brazil.

What are the benefits of the Azul and GOL codeshare agreement?

The codeshare agreement between Azul and GOL, effective July 11, 2024, provides more travel options, over 2,700 new travel opportunities with one connection, and allows customers to earn loyalty points or miles from either airline.

How many routes are available through the Azul and GOL codeshare agreement?

The Azul and GOL codeshare agreement features 40 non-overlapping routes, with 20 routes initially available on Azul's sales channels.

How can customers earn loyalty points from the Azul and GOL codeshare agreement?

Customers can earn loyalty points or miles from either Azul's Fidelidade or GOL's Smiles programs when purchasing codeshare flights through the respective companies' digital channels.

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