Business · Companies · 2 hrs ago
American Airlines takes a 7.9% stake in Brazil’s Azul
American Airlines has taken a 7.9% stake in Brazil’s Azul for about $100 million.
The investment was approved by Brazil’s competition authority, Cade, this week.
It is among American’s largest investments in other airlines, behind its stake in Republic Airways and close in value to its investment in China Southern Airlines.
The deal would bring American’s investments in other companies to about $500 million, roughly one-fifth of its portfolio.
Azul has said the investment could help preserve and strengthen its ability to compete.
The deal adds to Azul’s strategic airline investment: United Airlines also holds a stake, equal to 8.7% of Azul’s shares.
American’s CEO said the airline would look actively but cautiously for partnerships that improve its network.
American Airlines has taken a 7.9% stake in Brazil’s Azul in an investment of about US$100 million.
The investment is among American’s largest holdings in other companies, behind its stake in Republic Airways.
American said it welcomed approval of the investment by Brazil’s competition authority, Cade.
Azul said the investment could help preserve and strengthen its competitive capacity.
American CEO Roberto Isom said the airline would pursue partnerships cautiously but actively.
- Who
- American Airlines took a stake in Azul, a Brazilian airline.
- What
- American acquired 7.9% of Azul for about US$100 million.
- When
- The stake was acquired this week. American disclosed investment figures on October 22.
- Where
- Azul is based in Brazil.
- Why
- Azul said the investment could help preserve and strengthen its competitive capacity. American said partnerships could improve its network.
This story does not have two clearly opposing sides.
United Airlines disclosed that it held 8.7% of Azul’s total shares.
Azul CEO John Rodgerson described strategic investors as a milestone in changing the airline’s ownership structure.
American Airlines released its third-quarter results and reported investment figures that included its Azul stake.
American’s 7.9% investment in Azul was approved by Cade.
- American stake
- 7.9% of Azul
- Investment value
- About US$100 million
- Approval authority
- Cade, Brazil’s competition authority
- American holdings at September end
- US$408 million in other companies
- United stake
- 8.7% of Azul’s total shares
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What people are saying
We have been quite creative in finding ways to pursue partnerships. We will act cautiously, but actively, in ways that improve our network going forward.
This is an important investment, as American’s services, including those of our partners, will continue to offer customers the best travel options, both between the Americas and within South America.