United Airlines (UA, Chicago O'Hare) is to acquire a 5% stake (approximately) in Azul Linhas Aéreas Brasileiras (AD, São Paulo Viracopos) for USD100 million the two carriers said in a joint statement last week. United will also gain one seat on the Brazilian carrier's board.
As part of their strategic cooperation agreement, the two carriers will also begin codesharing on each other's flights, subject to government approval. United plans to put its "UA" flightcode on Azul domestic flights out of São Paulo Guarulhos and on its Orlando International and Fort Lauderdale International services while Azul will in turn place its "AD" flightcode on United routes throughout North America and the Caribbean.
The agreement will also see the pair expand their frequent flyer loyalty cooperation wherein MileagePlus and TudoAzul members will have reciprocal benefits to earn and redeem miles systemwide on both airlines.
“Brazil is an important market in United’s global route network and this partnership with Azul further strengthens our ties to the region,” Jim Compton, United’s Vice Chairman and Chief Revenue Officer, said. “Together we will offer our mutual customers more choice and convenience when travelling to and from destinations across Brazil.”
